While the Wii U is Nintendo's first console in several generations to be sold at a loss, the company confirmed that the gap between manufacturing cost and sales price is not as significant as many have assumed.
"As soon as we get the consumer to buy one piece of software, then the entire transaction becomes profit positive," said Nintendo of America President Reggie Fils-Aime in an interview with Mercury News. "In the end, the business model is 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 create significant profit for the company."
Both the Xbox 360 and PS3 sold at a loss on launch, but took months to get on their feet and create revenue for Microsoft and Sony. Nintendo's strategy provides immediate results, and keeps the company in the green based on a single dependable purchase.
The Wii U launched on Sunday in two flavors: Basic and Deluxe. The Basic version is white and has 8GB of memory, a sensor bar, an adapter, and a HDMI cable. The black Deluxe release sports 32GB of memory, and comes bundled with Nintendo Land, a Gamepad charging cradle and stands for the console and controller.
Launch Game List
ZombieU, Scribblenauts Unlimited, Nintendo Land, Rabbids Land, New Super Mario Bros. U, Game Party Champions, SiNG Party, ESPN Sports Connection, Your Shape: Fitness Evolved 2013, Batman: Arkham City Armored Edition, Darksiders II, Assassin's Creed III, Ninja Gaiden 3: Razor's Edge, Epic Mickey 2: The Power of Two, Skylanders Giants, Call of Duty: Black Ops II, Warriors Orochi 3 Hyper, Tekken Tag Tournament 2, FIFA Soccer 13, Just Dance 4, Sonic & All-Stars Racing Transformed, Transformers Prime, Wipeout 3.
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