Nintendo has confirmed that each Wii U console is being sold at a loss, curbing hopes that a price cut might be emanate with next-gen consoles from Sony and Microsoft being released before the end of the year. Nintendo’s annual report cited that the Wii U console sales were a main reason for its $387-million operating loss.
Selling hardware at a loss isn’t a business practice Nintendo usually employs, but Nintendo of America president Reggie Fils-Aime recently went on the record saying that simply selling one software title puts the transaction “profit positive.” Naturally those buying a new console will end up purchasing a game, but Nintendo’s new console isn’t looking too great in its current state.
Nintendo Releases First Quarter Earnings, 160,000 Wii U Units Sold Worldwide
Of course there’s still plenty of first-party titles to be had, and Nintendo is hardly in financial troubles. In fact, the company could afford for the Wii U to be a complete bust and it’d still be alright.
Source: GamesIndustry International
