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One game sale is all the Wii U needs to become profitable, says Nintendo's Reggie Fils-Aime

NEWS | ? Comments |

Author: Peter Grimm  

A while back, Nintendo made it known that it would be selling the Wii U at a loss, making it the first Nintendo system to launch below cost. But as it turns out, it doesn’t take much for that loss to be turned around.

In fact, according to the Big N, all it takes for a Wii U to be profitable is the purchase of one game. Just one.

Speaking to Mercury News, Nintendo of America chief Reggie Fils-Aime revealed that the system is still being sold at a loss, but the loss margin is small enough that buying just one game will push it out of the red and into profitability.

One game sale is all the Wii U needs to become profitable, says Nintendo's Reggie Fils-Aime

"As soon as we get the consumer to buy one piece of software, then that entire transaction becomes profit positive," Fils-Aime explained. "In the end, the business model is still to drive the install base of hardware, and then to drive a strong tie ratio with all of the other software and experiences for the consumer. And if we're able to do that, then we will create significant profit for the company."

As has been well reported here and across the Gamersphere, Nintendo has been hit with plenty of losses for a while, but with this report it looks like things are looking up big time. Sure, the system is still being sold at a loss, but all it takes for that to change is one game, and since most Wii U owners are probably going to buy at least one game (aside from the copy of Nintendo Land bundled with the Deluxe Set), this could mean that Nintendo’s financial losses are finally nearing their end.

Do you think so as well, or do you think Nintendo still has quite a ways to go? Feel free to let us know.

Source: Mercury News

Via: IGN

Posted on: 11/21/2012 | ? Comments
Tags: Nintendo, Wii U, Reggie Fils-Aime, sales, ventas, Video Game News
Peter Grimm

A writer, journalist, and aspiring storyteller, Peter Grimm has been gaming since the days of the Nintendo 64, and reporting on the goings-on in the World of Gaming since late 2011. His base of writing operations is located within the void between Here and There, or so he would have you think.

The views of GameDynamo's writers are not necessarily the views of the website as a whole. However, we support freedom of speech and enjoy diverse opinions about video games. Hopefully you do too!


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