Wii not expected to result in loss from sales, says Nintendo

By Justin Mann on June 7, 2006, 11:49 AM
One trend among console manufacturers the past few years has been that upon release of the console, significant losses affect the company producing them, since the cost of the console far outweighs the cost it is sold for. This was true for the Xbox, PS2, Xbox360 and others, and will be true for the PS3. Nintendo, however, is singing a bit of a different tune. They are saying that even if there is a loss when selling the Wii, it will be minimal at worst. That leaves potential for the Wii to engage in price wars better in the future, and leaves Nintendo with more revenue ultimately to support game development of the console. Unlike Sony, who is expected to have nearly $900 Million lost to the PS3, Nintendo is confident in the cost of the Wii:

"It is a strange notion that a game console always leads to mounting losses in the beginning," Nintendo President Satoru Iwata told a news conference. "We can't promise we won't even have a one yen loss, but we are not expecting an enormous loss."
While the relevance of of the Wii not costing as much as other consoles is debatable when it comes to users actually playing games, this is a good thing for consumers as ultimately it means should Nintendo reach their expected sales goals, we're left with a company in strong standing to produce good things to use on the Wii.




User Comments: 3

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asphix said:
ermm.. Nintendo made $$ on the Gcube as well.. Nintendo always makes money, and they need to as they dont have the financial backing to take the hit Microsoft and Sony do.While Microsoft and Sony take a hit at first, royalty fees gained after 2 years into the products cycle (from the massive amounts of 3rd party games developed and sold for the system) more than make up for the initial loss and far outshadow Nintendos profits.Will that change this time around? Possibly, Nintendo appears to have some decent 3rd party support, depending on the controller and if it takes off or flops, Ninty could make a good chunk of change.However, its not really that significant of an issue in the long run, just a different approach to the same end result. Take a loss at first (provided you have the ability) and make it up in the long term, or develop with limitations and with strong start-up profits from the beginning and have less of a technologically future proof solution.Its why nintendo has completely changed its game plan away from the technical aspect of things.. you simply cant keep up without spending a premium in development to somewhat future proof your product.
canadian said:
I cant wait to get a Wii, and I know alot of others that feel the same way. The fact that it is so cheap, is great! If it does go down in price, hopfully more and more people will see the light. Lol.
DragonMaster said:
[quote] I cant wait to get a Wii, and I know alot of others that feel the same way. The fact that it is so cheap, is great! If it does go down in price, hopfully more and more people will see the light. Lol.[/quote]Plus it might last even longer if it's made in Japan like every other Nintendo consoles before. How many times do you find a defective GameCube when comparing to the number of PS2 and Xbox that break?
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