Why WiiU is making a (small) profit for Nintendo

[AnthonyW86]

Cleary397 said:

AnthonyW86 said:

Cleary397 said:

UncleScrooge said:
And in their financial report they said they are losing money with the Wii U. They hardly made any money at all despite 3DS hardware and software selling well and Abenomics.

Its the same situation with Sony game division at the moment though.

Massive lossed despite the PS3 selling incredibly well, though the Vita is underperforming.

Its because of recent R&D Costs for all the big 3

No it's not. Sony has big R&D costs because the PS4 is yet to be released, the Wii-U has been released a long time ago. Sure Nintendo have a big amount of games in development but it's in no way comparable to the release of a system.

But the amount of R&D money that goes into a console in its first year of release is huge.

There has to be funding for bug fixes, any extra infrastructure needed to support any online services, updates to features and the development and testing of new features.

It is not just spend the money then release it, it continues for a long time.

I agree with you that Nintendo is spending a huge amount on R&D, but i was responding to you saying that the situation is the same as Sony's. Sony is currently in the process of releasing a new system, and with that producing a few million PS4's. That means building up stock without these devices currently being on the market. That's a way more expensive process than Nintendo is in, Nintendo is already past that point.