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Nintendo aiming for Wii U profitability next year

Nintendo president Satoru Iwata told investors that he isn't sure when the Wii U hardware will be sold at a profit, but says this year will lay the groundwork for software profits next year.


Nintendo is usually laser-focused on profitability, but we recently learned that the company will take the unusual step of step of selling the Wii U at a loss. That sort of thing tends to make investors uneasy, and Nintendo president Satoru Iwata reassured them during a results call that this will serve as a foundational year, making system profitability as a whole (including software sales) possible next year.

"I do not yet have all the necessary information to be able to say exactly when Wii U hardware will start to be sold at a profit," Iwata told an investor call. He also noted that Wii U won't make a big dent in profits on the whole, since software sales will be limited by the install base and the initial investment in advertising the company must make.

"However, in the next fiscal year, we will have a larger installed base," he continued. "We will have a richer array of software and manufacturing costs will also decrease. Therefore I believe that, as opposed to simply asking when we will be able to sell Wii U at a profit, the focus should be on constructing a healthy profit structure for the business as a whole... I believe this is a goal we can achieve in the next fiscal year. While I cannot say exactly when the Wii U hardware will become profitable, I am confident that in the next fiscal year we can improve our Wii U business to a level where the platform business as a whole (when we include both the hardware and the software) makes solid contributions to our profits."

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From The Chatty
  • reply
    October 29, 2012 9:45 AM

    Steve Watts posted a new article, Nintendo aiming for Wii U profitability next year.

    Nintendo president Satoru Iwata told investors that he isn't sure when the Wii U hardware will be sold at a profit, but says this year will lay the groundwork for software profits next year.

    • reply
      October 29, 2012 10:31 AM

      My local Target has a Wii U demo unit set up and playable already. I have to say after giving it a brief try that I came away..... completely unimpressed. I don't like the HUGE controller at all and feel that it's even more of a gimmick than the Wiimote was/is. I'm sure it will sell like crazy initially, but I just don't see this system having long term legs with the direction they seem to be pushing it. Especially once Sony and MS officially announce their next consoles.

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        October 29, 2012 11:18 AM

        I'm not sure this system even has a tiny chance. 3rd parties are gonna offer the same stuff thats on current PS3 an Xbox 360's. Yea sure Rayman Legend is a Wii U exclusive right now but I'm willing to bet it'll be on the other systems in 6 months - a year. I don't like the Big N chances at all, if they were going to take a hit making a new system they should have upped the specs.

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          October 29, 2012 11:23 AM

          I hope they keep the focus on the kiddie games, and use the technology for fun learning games

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          October 29, 2012 11:27 AM

          I suspect that Nintendo will get the benefit of this generations last big games and then do a massive price cut once Microsoft and Sony release their guns.

          In hindsight though they probably could have taken major hold of the "next gen" market if they significantly upped the specs of the hardware. Similar to how MS got the jump on Sony.

          It's going to be interesting to say the least. In terms of gaming you have two solid markets. High-end, PC, consoles, and then handhelds, which moble gaming are taking a major bite out of.

          Nintendo has been successfully playing an intermediate market with the Wii, and I believe the Wii U will be a similar gamble. You have little to no competition, but instead place your bet on the consumers.

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            October 29, 2012 11:30 AM

            I think this should have released last year IMO, would've screwed over MS and Sony's plans big time, but of course that probably would've cut even deeper into their earnings.

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            October 30, 2012 7:33 AM

            Massive price cut? What do think the price of the PS4 and next Xbox are going to be? Higher than you think.

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          October 29, 2012 5:07 PM

          I keep thinking this, but people just keep on buying nintendo shit. 3ds is doing well despite declarations of irrelevancy. it took a price drop, but they did it, and I'm pretty sure it's even a profitable system, now.

          this may not be sustainable for nintendo long-term, but, who knows what the future will hold 5-10 years down the line?

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      October 29, 2012 1:24 PM

      That's pretty scary to see that Nintendo with the Wii U is selling at loss.

      I think we can expect a similar situation with the PS4 and the 720.

      So I won't be surprised to see 400$ price for the next gen consoles from Sony and MS.

      Not good...

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        October 29, 2012 1:27 PM


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          October 29, 2012 4:49 PM

          why would you expect it to be so much?

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            October 29, 2012 4:57 PM


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              October 30, 2012 1:39 AM

              We're leaving in a diiferent era...

              When the PS3 and the 360 came out, it wasn't so cheap to get a computer or a laptop.

              Not to mention that the tablets did not exist.

              We clearly saw with the Vita that consumer have change.

              If the Vita came few years ago, with such a tech. 250 $ would have been a no brainer.

              More than 400$ for a next gen console is "SUICIDE"

              Except the dedicated core gamers nobody will be ready to pay 600$ as a investement or so ( the console + game + controller + whatever hardware ) in a console.

              Nowdays people needs also to buy a smartphone, a tablet and possibly a handheld. That's means less bucks available.

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        October 29, 2012 5:49 PM

        Next-gen would suck if it came in under $400. Suck. Hard.

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        October 29, 2012 10:55 PM

        Wishful thinking. Sony and Microsoft's next gen offerings are going to be 500 at the cheapest.

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          October 29, 2012 10:59 PM

          nuhhuh man it's totally gonna be $600

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      October 29, 2012 6:05 PM

      that they're not seriously pushing next gen hardware as expected and still selling at a loss (which is unusual for them) really speaks even further to the cost of that controller (as if the $170 price for it in Japan didn't already). They're betting big on that tablet, because you're likely to see the other next gen consoles seriously outclass the Wii U hardware at a similar price point, and come with all the modern online services Nintendo has failed to grasp.

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      October 30, 2012 2:05 AM

      I wish Nintendo the best, but I really think they're going to get Gamecubed with the Wii U.

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        October 30, 2012 2:07 AM

        Well, that didn't stop the GC from getting great games!

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