Over the past year or so, Nintendo has stuck with the mantra that each console needs to make a profit for the company. Now they’ve confirmed that the Wii U will be sold at a loss when it launches on November 18.
This is likely the first time in history that Nintendo loses money on a home console. In a statement released to shareholders, Nintendo said that the Wii U is currently in production and will be sold “below cost”. Yesterday, Nintendo revealed that they expect to sell 5.5 million Wii U consoles by March 2013.
Nintendo has been in financial trouble over the past year. An unsuccessful 3DS launch resulted in the first ever financial loss for the company, but they managed to turn things around with an improved and cheaper 3DS.
The Wii U will launch at $299 and $349 on November 18. Most people expected a price at around $250, but even at $299, Nintendo is unable to make a profit on the console. Which isn’t a huge surprise at that price point: the Wii U is a modern console and the GamePad controller is the most technically advanced — and expensive — video game controller ever made.