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Forums - Nintendo Discussion - Wii U being sold at a profit = doing well financially?

OfficerRaichu15 on 04 December 2014

no one saw that

but anyway I bet they are making 20 dollars on each sold I think?



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Jizz_Beard_thePirate on 04 December 2014

Well, in theory, if both the 3ds and the wiiU is making profit, then you stuff like amiibos and their software titles, it should = profit! Console making profit alone won't obviously be the only saving grace, if they are making profit in all fronts + console, that should mean lots of profits provided the Operating Income a shit ton higher isn't higher

Although, I am not really a financial advisor so obviously don't take what I said too seriously cause I am sure there are many other aspects too



                  

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Ljink96 on 04 December 2014

Nintendo shouldn't be making a loss from here on out this gen. They will have games for U and 3DS to keep the cash flow. The Wii U is making a profit, yes and Nintendo is doing well financially, there's no doubt about that right now.



sidmeiernintifan on 04 December 2014

I don't think they are being sold at a profit.

What I think happened is that they manufactured 9 million units in 2013, at a loss, and they are still selling those Wii U's, so the loss for manifacturing those Wii Us is registered in the 2013 accounting.
When they finally sell those Wii Us and are forced to manufacture new ones, we will see if they are being sold at a profit or loss, or if it is a new model.



mii-gamer on 04 December 2014

You make a good point. ATM, I think most fans are happy that the Wii U is not making Nintendo bleed money.

If Nintendo lost 1 billion for the fiscal year my heart wouldn't take it.



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Zackasaurus-rex on 04 December 2014

Nintendo are not a loss leader. They tend to sell at profit so that every single aspect of what they do rakes in cash, rather than take a hit for the future.

In terms of loss leadership, Sony are the primary loss leader in the industry, with MS taking a middleground and Nintendo being profit-oriented.



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LinkTheHuman on 04 December 2014

It's obvious that Nintendo's firsts initial investment into the console still hasn't returned a profit,

The fact that they couldn't make a profit off of selling units is honestly just depressing (reffering to how much investment money it takes for maintenance, ui software, production etc.) However, at it's current rate, the wiiu has been on a slow climb (with sky rockets such as smash and mk8) upwards. I suspect after Smash, bayo, amiibo and C.T.T.T. they'll be selling around 75 to 100 k per week. So in technical terms yes, the wii u is selling well (will be profitable on initial investment), but it won't be the hordes of money Nintendo drowned in after making the first wii.



Dusk on 04 December 2014
Hiku said:

All around the forum, I've often come across people usaing "Wii U is being sold at a profit now" as a 'be all end all' argument for why Wii U is doing well financially.
But I think they're forgetting a few important factors that are neccesary for the Wii U to be a profitable console for Nintendo.

(Btw, I've been unable to find a source for when they started selling them at a profit, so if anyone has a link, if you would be so kind and post it for me, it would be much appreciated.)

First of all, selling at a profit is a positive thing. Don't get my wrong. But the cost of each console's components is not the only cost Nintendo have to recuporate.
What about the years and and millions/billions invested in Research & Development for the Wii U? (I don't know the exact figure, but I read that Sony's R&D division was down billions because of the R&D for the PS4. Either way, it's a huge sum of money.)
The console is expected to make up for this investement as well. And then some, in order for the shareholders to be interested in developing the next console. There's also all the advertising, shipping, liscensing, and saleries for people still working with the Wii U, as well as making up for the money they lost when they were selling the console at a loss initially, etc.

So it comes down to how much the console is making. (Of course, they make money off of software sales as well, but I'm focusing only on the console right now since people use that as an argument for why a larger instal base isn't important as long as the console is sold at a profit.)

Do we know how much Nintendo makes on each Wii U sold? Do we know how much they invested in research and development for the Wii U?

For me, it's a rather bold statement to claim that it's all fine and dandy unless we know these things. It's certainly heading in a positive direction if it's selling at a profit. But when or if it reaches the point of making up for all the money they invested to get here, that is what really matters for Nintendo financially.


It is a stretch to go from one to the other. But in the end it was that Nintendo made profit on their last quarter... So they have become profitable again.



Gotta figure out how to set these up lol.

GProgrammer on 04 December 2014

No Nintendo as of yet have not said the Wii U is sold at a profit, people claiming it is are just guessing



LinkTheHuman on 04 December 2014
GProgrammer said:
No Nintendo as of yet have not said the Wii U is sold at a profit, people claiming it is are just guessing


IKR, Those dam analysts have no idea what their talking about!!!