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Nintendo: Wii U is profitable after just one game sale

Wii U GamePadNintendo surprised everyone last month when they revealed that the Wii U console will be sold at a loss initially. This makes it the first Nintendo home console in a long time, possibly the first time ever, that’s sold at a loss.

But it’s not that bad, according to Nintendo’s Reggie Fils-Aime, who said in a recent interview that while the company is losing some money on each Wii U sold, it only takes one first party game to be sold in order for the Wii U to become profitable. He said:

“As soon as we get the consumer to buy one piece of software, then that entire transaction becomes profit positive”

He added that the business model is still to “drive the install base”, and then to sell as many games as possible with a strong games to console attach ratio. GameStop recently reported that over 500,000 Wii U consoles were pre-ordered, and 1.2 million games, which comes out to 2.4 games per console. That’s a really strong number when we’re talking about pre-orders alone, and it doesn’t include Nintendo Land.

Nintendo has several first party games for the Wii U, the biggest one being New Super Mario Bros U. We’ll have our NSMB U review up very soon, so stay tuned!

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  • 007 1/2

    well im glad that they priced it well. for a second i thought they might go bankrupt from this like sony.

    • OO7 1/2

      I like… Balls

      • 007 1/2

        notice how that isnt me.

        • 007 1/2

          Jk guys that was me, I love balls

          • 007 1/2

            You are a bigger copycat than Microsoft and Sony put together.

      • HyrulianUtopia

        We can tell you’re a fake, the reall is 007 1/2 but you wrote OO7 1/2 (instead of writing two zeros, you wrote two capital Os.

        Rookie mistake.

      • ssb43dsFC3007 8585 6950

        are u 2 girls?

      • Grodus

        I like… Fakes

    • Nintedward-WiiU is 100% paid off.

      Sony aint bankrupt yet. And Nintendo have Mega money and will make even more off the wiiu. People thinking Nintendo will do a Sega are stupid. Sega had failed numerous times- Sega CD , 32 X , Gamegear , Saturn. all failures (financialy) and they had one last crack with the dreamcast (which was awesome) and failed.

      Nintendo have just sold 155Million DS’ and 100Million Wii’s aka Unprecedented success.

      Sega at the time had sold 8million sega saturns and a similar amount of gamegears. Basically a cotastrophe. Nintendo IS making the most money out of the industry in these last 6 years , by far aswell….

      • Dereq

        Thank you. Most video game fans haven’t got a clue on how the business side of things work. People that say the Nintendo should “go the way of Sega” are akin to people that like to use the term “liberal news media”. It’s almost as if they give no thought to what they are saying it has been brainwashed into their mind so frequently.

      • ledreppe

        Could you supply me with a source for those DS and Wii sales? The sites I know of give slightly lower figures.

        Anyway, I’m glad I’m getting NSMBU bundled with my pre-order as this is a first party title and will mean my Wii U will have generated a profitable sale for Nintendo.

        • Nintedward-WiiU is 100% paid off.

          http://www.wikipedia.com – then search DS or Wii . And Nintendo recenly announced there sales figures for the wii and DS.

          Wii software sales- 800Mill , PS3 software- 500Mill

    • Dan

      They have billions in the bank,,,they wont lose much money because they wont have too many stuff gone unsold,, unlike sony,,, tv, bluerays, film, etc that require alot if investment,,,

    • cool

      yeah….priced “well”…thats why it costs 3500kn=630$ in my country

      • Mr.Chimera573

        Well, Nintendo sells the consoles to the retailers and after that, it tis their decision to price it accordingly.

  • OceanJ

    Exactly, so if you want to see Nintendo succeed and continue to innovate gaming for the Wii U and beyond, go buy some Ninty games!

    • OceanJ

      I like……….Balls

      • 007 1/2

        Me to brah

      • Superrty

        Seriosly? The guy you’re pretending to be has a picture.

      • Grodus

        I still like fakes, and this time, the other guy has a picture! At least, for your sake you put in the right username this time… Wait, who cares about your sake?

  • Chris846

    Excellent to hear, this should mean that Nintendo will push out more high quality software to keep their profit coming in, extremely smart business plan for both them and customers

  • Andrew Sheehan

    Well that’s nice.. So, when they say, “consumer to buy 1 piece of software”, is that just 1 consumer, or 1 piece of software for each and every person who has bought the Wii U?

    • Grodus

      Time for maths. For each person that bought a Wii U, the loss amount would be multiplied. Getting a game would also be multiplied by the same amount. As a result, the profit would *also* be multiplied by that amount. So, 1 consumer for that individual console, and all consumers for all consoles. (It can go either way) If this didn’t help at all, sorry.

  • 0soul

    Not a bad idea.

  • FabulousKing

    I hope that Nintendo can survive this generation… I don’t have a Wii U or a 3DS but if I had enough money I would support Nintendo :)

  • Borbo Paciugo

    What if that game was a Japanese RPG?
    Join Operation Kunilliafall on facebook!

  • D2K

    Basically they are making a profit on every sale. People whom bought a deluxe model (like myself) bought at least one other game with the system because they ‘thought’ NintendoLand would not be enough to sustain them. Of course I was wrong as NintendoLand actually is an excellent game that is close to the Wii Sports level of replay value.

    People whom bought the basic model had to buy a game. So whether it was accidentally or purposefully, Nintendo set up this thing beautifully. :)

  • killerkiwis

    well i have bought new super mario bros u because it’s good game and i want to support nintendo.

    But game sucks because:
    -musics are same
    -bosses are same
    -still can’t take yoshi with you

    • Lazyboy88

      Well 2d Mario games is really meant to be old school, i like that they are keeping it that way..

      • Not a blind Fanboy

        @Lazyboy88

        Stop defending Nintendo with how they handle 2D Mario. It’s not much better than what Activison does w/ CoD and what ubisoft does w/ Assassin’s Creed. Yes, they don’t release Mario yearly, but the games aren’t evolving. We’ve been getting the same music, sprites, enemies, and “art style” since ’05.

        New Super Mario Bros. is a bad series. It seems like Nintendo isn’t even trying. They re-use elements because of nostalgic reasons which is BS and they don’t even want to make any changes. It is STAGNANT! Nothing changes, nothing evolves, it is the same thing we’ve been getting for over 20 years except it’s easier and just plain soulless.

        I don’t want to see the annoying Koopalings any more, enough of Bowser Jr… hell, even enough of Bowser. We’ve seen them enough, and they are boring! What about an actual art style…. maybe something along the line of Super Mario World, instead of having the same look from the original NSMB game. Maybe some new legitimate gameplay elements, improved underwater levels b/c we all know those are everyone’s least favorites. Improved multiplayer would be nice instead if having the same troll fest we got with the Wii.

        You and people like you are why Mario doesn’t evolve. Thank you so much for ruining an entire game series!

        • Montrhuntr

          I agree with you. I still own NSMB U (and I love it), but I do wish that Mario evolved more. I wan’t to see today the equivalent of the gap that Super Mario 64 made back in the day. Not necessarily free-roam Mario (Although that would be super cool), but something with deeper game-play and strategy, a new art style like you mentioned. They aren’t even trying to make anything new lol.

          How about a crash bandicoot style Mario game? even that would be new. How about some old RPG Mario re-developed? How about a Mario game where you get to choose GOOD or EVIL? How about Princess Peach DOSN’T get kidnapped? How about Mario gets kidnapped instead and Luigi and Peach go rescue him? We have seen baby Mario, How about grandpa Mario and his kids or something. How about Wario and Waluigi get a real story-line in a Mario game?

          These are just super quick ideas off the top of my head. I’m no game developer, but I’d love to play a Mario game with any of those features.

    • D2K

      You can take baby Yoshi with you if he is around.

    • Axe

      It’s not too innovative, but they never promised it would be. You got exactly what you should have expected. I agree that the bosses need an overhaul, but Mario is based on the level design.

    • Grodus

      It’s a good game but it sucks? Anyway, like someone said, you got what you should have expected. And the bosses at least need a different attack pattern, or at lest invincibility frames, because at this point, you can jump on them 3 times at once.

  • metroidfusion2

    That’s a surprise and I’m glad ha nintendo will dominate next gen and already defecates on this gen

  • Nintendo

    Awesome

  • HyrulianUtopia

    They’re so smart, I knew they had a few tricks up their sleeves.

  • Maverick-Hunter

    Oh yeah I see revolutinary wii u first patty games coming our way 2013-2014 :)

  • immallama

    *Slowly starts clapping*

    RESPECT

  • King rat

    They won’t be making a loss with the uk prices of the console!

  • richman

    Never underestimate nintendo.

  • Howdy

    This makes me very happy.

    I hope Nintendo succeeds this gen, I hope MS and Sony succeed as well, competition is good for gaming, keeps people innovating and trying to produce the best possible content.

    I wish all major gaming platforms a healthy future, cause that means my favorite hobby continues to grow and shine.

    • Dereq

      I remember reading an article in Next Gen magazine back in like 2000. They were interviewing some former Sony bigwig and he stated that the console market could only sustain two competing platforms for any good length of time. Wow how wrong he turned out to be.

      • PSWii60

        Considering Nintendo tends to always be making a profit (with Nintendo only making a loss for 1 year on 3ds… which is now making a profit, and Wii U turning profit with 1 game sold per console already), If what that Bigwig says comes true… I’m pretty sure Nintendo will be one of the 2 :p

        Then again, Sony and Microsoft are the 2 that compete with each other. Nintendo just doesn’t give a damn about those 2.

        • Madmagican

          I think 3 is a completely healthy number for competition; plus think about all the chaos that would result from one of the three dropping from the gaming world

  • Xarret

    This numbers are awesome but are they counting people that got their consoles from the GameStop waiting list? I got mine that way plus I bought 3 games one been NSMBU and I didn’t pre-ordered.

  • brandon

    I’d be suprised if they are selling it at a loss.. Based upon tear-downs of wiius, some people have reported just 12.5gb/sec of memory bandwidth, (In contrast, I believe the now quite old playstation 3 has a total of about 47gb/sec memory bandwidth) and the wiiu is rumored to have a cpu similar to the xbox360’s , but at half the clock speed! But Nintendo has in recent years been about fun games with very modest hardware, so this seems typical for the current Nintendo.

    • Cloudkill87

      These so called tear downs don’t really prove anything about the system, none of those chips are labelled correctly and no one has any way of testing their bandwidth read write speeds or clock speeds or do a full GPU test.

      • brandon

        “none of those chips are labelled correctly”? Sounds like wishful thinking to me.. I would imagine that’s a very remote possibility. Furthermore, by looking at the tiny, tiny die size of the cpu on a 40nm process, it doesn’t take a lot of guesswork to tell it’s probably not a high performance design by current standards.

  • Linskarmo

    I can’t imagine anyone wouldn’t buy at least one game with their Wii U, so losses because of consoles should be few and far between.

  • head in hands at industry scum

    the only reason wiiu sells at loss is the exchange rate a slight rase in dollar/pound/euro or/and slight drop in yen = wiiu will sell at a profit , nintendo has to ride out this global melt down….

    of topic theres more devs talking cpu crap ITS THE NEW FAD/KIDDY/are games dont sell on nintendo platform EXCUSES there saying cpu weak BUT THEN NOT SAYING WHY thats blatant evidence there lying and building a myth, iv clearly explained cpu basics clearly these devs CANNOT or WILL NOT its clear what is happening…

    a cpu with 15 execution units is weaker than a cpu with 3 execution units / a cpu with 3mb catch edram is weaker than a cpu with 1mb catch sram

    these clowns are lying to us DICE is at it now LOOKS LIKE EA WONT BRING BF4 TO Wiiu and told dice to talk anti nintendo crap I SEE THIS INDUSTRY FOR WHAT IT IS A JOKE….

    trayarch on the other hand clearly love wii wiiu and treat wiiu with respect

    • TheUNation

      Hey scumbag… go back and play with your Magnavox Odyssey in your basement and freaking dwell there!

      • TheUNation

        My bad… I thought you was bashing the Wii U. Cancel that.

  • Max Lazy 10 / NNID: Max_Lazy_10

    Well this is good news for sure. Don’t tell anyone but I was just a bit nervous, but as usual, the big N pulls through.

  • JohnErikMartin

    If you wanna hear an avid gamer’s opinion on Wii U titles (and very soon, the Wii U itself), you can go to DMJared’s page on YouTube.
    He didn’t send me here to tell you that, I just wanted to share his page with you guys, since he’s gonna do a lot of videos on the Wii U.

    • PKUltima

      I wish Jerred was still doing Hard News for Screwattack… Chad and Craig have been trolling Nintendo lately.

  • Dan

    Lol at Microsoft,, i think they are trying to man up again release a console with 600 price tag… They better be, there will be alot of ‘hardcore’ gamers disappointed if 720 is just a bit powerful than Wii U…

  • Madmagican

    BRING IN THE FIRST PARTY TITLES!!!!! …maybe even a new IP?

  • TheMan

    I’m glad they have the money in after only one game. I feared that they miscalculated the console price so badly that they would need a ridiculous high amount of games per gamer to balance that out.
    I mean we all know there are first party games basically every Wii U owner is gonna get anyway.

  • Derp

    This one game will make me jump to get a Wii U:

    A Mario World RPG where you play as a koopa.

    (Mario needs to rest for a bit, or else diminishing return will unfold in us players.)