The Nintendo 3DS initially made a loss on every sale on launch. With the Wii U, Nintendo is still making a loss - but NOA president Reggie Fils-Aime revealed that if every console buyer took one game home with them, that turns into a profit.The exec told
Mercury News that "the business model [for Wii U] doesn't change dramatically" in comparison to past home consoles, where Nintendo always sold at a profit.
"As soon as we get the consumer to buy one piece of software, then that entire transaction becomes profit positive," he said. "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."
Considering that the Wii U launch includes
New Super Mario Bros. U,
ZombiU and
Sonic & All-Stars Racing Transformed, we don't think Reggie will have too much to worry about on that front.
Nintendo expects to sell 5.5 million Wii U consoles for the year ending March 30, 2013, along with reaching 24 million software sales for the platform.