Wii U to be sold at a loss

Nintendo is not a company known for selling hardware at a loss. Only when Nintendo started selling 3DS below cost did the company report massive losses--a necessity to help rescue the then-fledgling platform. And while Wii U will represent the launch of Nintendo's most-expensive console yet, it appears Nintendo is still subsiding the cost of the hardware.

Speaking at a recent investor's meeting, Nintendo's Yoshihiro Mori confirmed that Nintendo will take a loss on each system sold. It's unclear how much of a loss Nintendo is expected to take, but clearly bundling a tablet controller with every system has something to do with the system's unusually high production cost.

"Manufacturing costs are expensive, and we priced the machine at a level customers would accept," Satoru Iwata said according to IGN. "It's important for us to develop a healthy business next fiscal year by combining sales of hardware and software."