Sunday 25 November 2012

Wii U Becomes Profitable After One Games Sale


Wii U Becomes Profitable After One Games Sale

Nintendo has revealed it makes a profit after consumers buy just one game.


Nintendo has revealed that it starts making money on Wii U sales once consumers buy a single game.
Speaking to Mercury News, Nintendo of America President Reggie Fils-Aime revealed that while the console will be sold at a loss, it only takes the sale of one piece of software for the company to get back in the black.
"As soon as we get the consumer to buy one piece of software, then that entire transaction becomes profit positive," he 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."
The Wii U is Nintendo's first console to be sold at a loss, but presumably only by a small margin. Given that most gamers are likely to buy a retail game at launch, even with Nintendo Land included in the premium bundle, this could mean the company is finally about to see an end to the financial losses that have been dogging it.

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