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Forums - Nintendo Discussion - Reggie: WiiU is profitable with just 1 game purchased

Galaki on 20 November 2012

Q: This will be the first Nintendo game machine that the company's going to be selling at a loss at launch. How does that change the business model for Nintendo?

A: The business model doesn't change dramatically, in that as soon as we get the consumer to buy one piece of software, then that entire transaction becomes profit positive.

source

I am going to bleed Nintendo by not buying a game with the WiiU. That'll teach 'em (or something).



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Vinniegambini on 20 November 2012

Nintendo doomed?



Roma on 20 November 2012

that's great!

so this includes the premium then I guess



    R.I.P Mr Iwata :'(

animegaming on 20 November 2012

glad to see it selling well so far



Pesmerga7551 on 20 November 2012
animegaming said:
glad to see it selling well so far


It has nothing to do with how well it is selling.

The statement is like this: For every one WiiU console made, we have to sell 1 game at full price to have the console not lose money.

Because the WiiU sells at a loss per console.



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osed125 on 20 November 2012
Pesmerga7551 said:
animegaming said:
glad to see it selling well so far


It has nothing to do with how well it is selling.

The statement is like this: For every one WiiU console made, we have to sell 1 game at full price to have the console not lose money.

Because the WiiU sells at a loss per console.

I'm pretty sure 90% of Wii U owners bought NSMBU, so Nintendo is pretty much set.



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happydolphin on 20 November 2012
RolStoppable said:
That's good news for a change.

But as a hardcore gamer, it infuriates me that Nintendo isn't selling the system at a greater loss, because that would be the honorable thing to do.

Why do I pay so much attention to your posts? You're so nutty. :)



miz1q2w3e on 20 November 2012

Good to hear.



Pesmerga7551 on 20 November 2012
osed125 said:
Pesmerga7551 said:
animegaming said:
glad to see it selling well so far


It has nothing to do with how well it is selling.

The statement is like this: For every one WiiU console made, we have to sell 1 game at full price to have the console not lose money.

Because the WiiU sells at a loss per console.

I'm pretty sure 90% of Wii U owners bought NSMBU, so Nintendo is pretty much set.

No release in history, even at a launch period has numbers anywhere this high. To even think a game has a 30% attach rate per console purchased is unrealistic.



the_dengle on 20 November 2012

So the loss on each console sold is less than the profit margin on a single game. Works out nicely for Nintendo.