Wii U Will Be Sold At A Loss But Signs Are Good For Sales Figures

During Nintendo’s financial call yesterday, the company’s President Satoru Iwata conceded that their fiscal year might have the shine taken off it by the Wii U’s release. Despite earlier hints that the hardware would be profitable from the outset, as Nintendo’s consoles usually are, Iwata admitted that they’d be selling at a loss for a while.

“Rather than determining a price based on its manufacturing cost, we selected one that consumers would consider to be reasonable.” Reported Iwata to investors by way of an explanation for the adjustment to Nintendo’s financial projections.

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Nintendo has always managed to launch its hardware in profit, as opposed to Sony and Microsoft who sold their previous consoles at a loss for the first months and years, recouping that loss through licensing and software. The slow start to the 3DS’ life necessitated a drastic price cut that heavily impacted on Nintendo’s financial reporting for the period – they posted the company’s first ever annual loss.

While Iwata is predicting a negative impact on the company’s books, it’s not expected to be quite as bad as that. The company is predicting 5.5 million unit sales (although they say “sales” and “shipped” at different times) for the new console in its first year. That’s fewer than the Wii sold in its first year but roughly 340,000 units and that older console racked up over 28 million units of software sold in its first 12 months.

Iwata noted that he world’s largest videogames retailer – and owner of GameInformer Magazine, Gamestop – had already sold out of its preorder allocation and currently has 250,000 customer names on a waiting list, should more consoles become available to them.

Many have predicted that there would be market confusion because of the iterative nomenclature. More were forecasting poor sales because of the console’s status, comparable to currently available Microsoft and Sony machines. So this news might be seen as a little unexpected. It’s something of a cliché that you should never bet against Nintendo but it seems like once again, that mantra might hold true. I’ve preordered one, what about you?

Source: Nintendo

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10 Comments

  1. They will make that money back in no time, my mom pre ordered 3 for my my son & cousins, she was sold with the shiny tablet

  2. Every time I read Iwata, I see the word Twats instead. Not due to predujice against Ninty but more my eyes are really screwed and I need glasses.

    I have nothing to add regarding the article :/

  3. Pre-ordered? Nope. I won’t have the time to play it, and it’ll be a waste.

  4. No pre-order. Not interested at all. Poor launch games.

  5. Not interested in this. I’m still skeptical that this will have long term 3rd party support and I just won’t risk having years of shovel ware with only a handful of worthy games. If I’m proven to be wrong then great

  6. I’m not seriously interested until it get’s some more games, a 3D Mario, Zelda, SSB and Mario Kart will help sell it to me, but I’d like to see more new IP’s. It seems like too much of a inbetweener, and as I’m happy with my PS3 and Vita, and plan on getting a PS4 close to launch (if not at) I just can’t justify it.

  7. Haven’t pre ordered as Rayman Legends was delayes and there is nothing else in particular that is a must have in my books. I’m very interested in the console and the new controller, though.

  8. I’m interested because it’s Nintendo. Beyond that, I’m struggling to find much to desire in the hardware itself and am nowhere near a pre-order.

  9. While i’m personally not interested in the Wii-U (Still burned from being a massive Ninty fanboy during the wii era), i’m kinda surprised by the positive figures (possible spin involved though).

    …I still have a morbid interest in wanting it to crash and burn though.

  10. not interested not sure how it can be selling at a loss.

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