You guys need to understand Nintendo Business model.
Nintendo WiiU source of revenues:
1. Nintendo 1st party software sales
2. Nintendo Eshop sales (Retail & indie)
3. Virtual console on Eshop.
3. Nintendo royalties from 2nd & 3rd party games sales.
4. Nintendo WiiU accessories
5. Others (merchandise, toys, candies, etc.)
The most important aspect is that Nintendo makes their own games, instead of getting a royalties like Sony and Microsoft, Nintendo take in the full revenues after paying of retail cost. Going forward this part of the WiiU business plan will become even more profitable as more and more console owner buy their game on the Eshop, cutting out most of the retail, delivery, packaging costs.
There is very little costs involve for Nintendo to bring a game from their backlog to the Virtual console and any sales are almost entirely profit this is one of Nintendo WiiU's cash cow. I think in the future you might actually Wii game showing on the Virtual Console.
All of the accessories that accompany the WiiU are all sold with a healthy profit margin more than making up for the small loss on the console sales.
Because of the source of revenue mention above and the fact that Nintendo is a 1st party developer on top of being a hardware manufacturer, Nintendo Wiiu's doesn't need the same larger install based compare to Microsoft and Sony. Nintendo could be more profitable with a install base of only 25 million compared to one of 50 million on Sony/Microsoft.
One of the biggest problem with the Wii was that people would purchase a Wii just to play Wii Sports and Wii Fit, theses customers would have a very small attach rate. The WiiU on the other hand is attracting a much more gamer audience and the attach rate should be much greater than it was on the Wii. Nintendo is much more interested on making a greater profit by selling you many games and a system than having a one-time profit of selling you a system.
Site like VGchart can't track how many games are being sold on the eshop, which is Nintendo's most profitable segment of its business plan as Nintendo install base increase and customers willingness to buy games online increase. Nintendo could strive on a much smaller install base, the WiiU could be a success with a install base of only 20 million consoles sold.
Here my WiiU console prediction, Total expected in 5 years would be 35 Million consoles.
Wii U - First year sales = Just under 4 million (Nov12-Nov13) actual
WiiU - Second year sales = 6million **the price cut to $299 and new release should bring in 50% more than last year**
WiiU - third year = 10million **Casual friendly price of $199-250 should move a lot more unit then the prior year**
WiiU - fourth year = 8 million **Nintendo first party games will keep sales going with a 20% downturn**
WiiU - Fifth year = 7 million **Nintendo console should probably cost around $150, last year of the wiiU?**
