"As soon as we get the consumer to buy one piece of software, then that entire transaction becomes profit positive."- Nintendo of America President Reggie Fils-Aime says that, although the Wii U console is selling at a loss, it only takes one software purchase from a consumer to become profitable. Nintendo revealed last month that the console sells at a loss - i.e. the cost to put the machine together is greater than that which the consumer purchases it for. However, Fils-Aime's latest comments suggest that the console is extremely close to breaking even on that front, given that the purchase of a single retail game will cause a swing to profits. "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," he added. "And if we're able to do that, then we will create significant profit for the company."
1 min read
Each Wii U makes a profit with the sale of a single game
"As soon as we get the consumer to buy one piece of software, then that entire transaction becomes profit positive." - Nintendo says just one software purchase from a consumer for the Wii U makes it profitable.