Nintendo Losing Money with the Wii U
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.
U goes on sale November 18th. Source 1