Speaking to Mercury News, top man Reggie Fils-Aime has said that a customer needs to do to turn the Wii U into a profitable console is buy a game for it. And due to Nintendo’s licensing costs, that’s job done.
“The business model doesn’t change dramatically,” he said, when asked about the Wii U being sold at a loss – the first Nintendo console to do so at launch, “in that as soon as we get the consumer to buy one piece of software, then that entire transaction becomes profit positive.”
“In the end, the business model is still to drive the install base of hardware, and then to drive a strong tie ratio with all of the other software and experiences for the consumer. And if we’re able to do that, then we will create significant profit for the company.”
“The total install base for Wii is much more than our two competitors,” he said, when challenged about the Wii U’s technical grunt.
It’s almost certain that most Wii U buyers will grab New Super Mario Bros U, so that’s pretty much an instant profit on day one for the brand new machine.
“Our target is consumers 5 to 95. We pride ourselves on being a mass market games company. We absolutely want more active players. We want more casual players. And we think we’ve got the offering to attract a very wide audience.”