Nintendo Losing Money with the Wii U

Published on 10-25-12 09:55 PM

Although the new Wii U has already proven a hit after quickly being completely booked with preorders, Nintendo’s not going to be making anything from their sales. Why? Company president Satoru Iwata says they’re selling it under the manufacturing cost.

The basic Wii U set is starting at $299.99 with the deluxe being $349.99. These may seem expensive already, but Nintendo is actually being generous with these prices. Iwata says they want to make the console more affordable for consumers, which will also help in attracting more developers to make games and more people to buy them. They know very well that price can make or break console sales as shown with the 3DS last year before and after the price cut.

Loss in profit isn’t uncommon for new consoles, such as was the case with the PS3 and XBOX 360, so Nintendo should be making money again once the Wii U’s popularity picks up more. They just need possibly a year or so.

The Wii U goes on sale November 18th.

Source 1
Source 2

_{This article was originally published in forum thread:

Nintendo Losing Money with the Wii U
started by
Tetra} _{View original post}

27 Comments

InsomniacMan - 10-25-12
- Reply
Nintendo will be alright.

Rekop - 10-25-12
- Reply
Sucks for them, but it's Nintendo..
The lower the prize, the better for us, nah?

Servant - 10-25-12
- Reply
-_- nope it's a simple business strategy, if it was any higher it would sell like the ps3 on launch (like snow to eskimos).
Besides a company like Nintendo should be more interested in software sales instead of hardware sales, as they are what keep consoles alive.

Sonicdiezx - 10-25-12
- Reply
I knew it!!! Nintendo is loseing money! I told people in my blog and they said i was lieing! haw!! Thank you for proveing my point!

CANDY811 - 10-25-12
- Reply
Welp that's interesting but doesn't stop me from getting a Deluxe set!

StephF - 10-25-12
- Reply
What a bummer. Hope the Wii U becomes a success regardless.

Nin10DoGuy - 10-25-12
- Reply
Awwww... Oh well. I bet Nintendo will begin to step it up. Nintendo will be selling more Wii Remots than before since most of the games I seen are multiplayer.

MrMario - 10-25-12
- Reply
I'm sure things will pick up.

bklynvicky - 10-25-12
- Reply
Nintendo will make their money back!
^^

InsomniacMan - 10-25-12
- Reply
Originally Posted by Sonicdiezx

I knew it!!! Nintendo is loseing money! I told people in my blog and they said i was lieing! haw!! Thank you for proveing my point!

Lol I dont see Sega making consoles.

Squrtle - 10-26-12
- Reply
Originally Posted by Servant

Besides a company like Nintendo should be more interested in software sales instead of hardware sales, as they are what keep consoles alive.

Yeah, because we don't incredible top class games every single year or anything...

Austin32 - 10-26-12
- Reply
Why Thank you Nintendo!

Austin32 - 10-26-12
- Reply
Why thankyou Nintendo!

Sniped - 10-26-12
- Reply
Nintendo is a strong and very creative company.
They'll be A-Okay.

StephF - 10-26-12
- Reply
Originally Posted by Sniped

Nintendo is a strong and very creative company.
They'll be A-Okay.

I agree, & they'll be back on track in no time.

:)

GentleFire - 10-26-12
- Reply
Common sense says that Nintendo is rushing too fast with their franchises. They need to slow down a bit to get their funds, rather than wasting it on more.

supermario18 - 10-26-12
- Reply

supermario18 - 10-26-12
- Reply
[sad]

Inuuto - 10-26-12
- Reply
Aww.. Nintendo..

nimhuzamaki24 - 10-26-12
- Reply
Here is what I believe. For the value of what you get from a launch system, speaking mostly on the number of things you get out of the box, is on par with the 360 and PS3. With that being said, the basic system, power cord, controller and with adapter (Wii U Senor Bar//360 Kinect Senor//PS3 Move Senor) make the Wii U stand toe-to-toe-to-toe with the other systems. Now where the launch of the Wii U really shines is in the "Extras." Wii U, the first of the three to come with a HDMI Cable, no matter with version you pick up this holiday season, is a major plus. Not having to shell an additional $30 - $50 on one helps. It comes with a game inside. The other two did as well, so a three way tie stands here. Additional storage and automatic enrollment in a buyers program to earn new digital games by buying others. I love overall love the Wii U launch. I don't knock Microsoft or Sony, but I'm a true Nintendo fan. Microsoft & Sony both do things big, but Nintendo changes the way we game with each new system. So hands down, Nintendo all the way!! I mean, also. If you a bigger fan of 360 & PS3, please stop making big arguments on here against Nintendo, this IS a site for Nintendo fans. #ijs