Nintendo loses almost $21 for every Wii U sold

#1P_A_N_D_A_M_A_NPosted 1/30/2013 12:34:26 PM
Nintendo revealed how much money it was losing on each Wii U console sold with the release Wednesday of its 2012 third quarter financial report.

A note about the Wii U in the financial statement for the third quarter ending Dec. 31, 2012 reads, "Owing to the fact that the “Wii U” hardware sales have a negative impact on Nintendo’s profits, the operating loss was 5.8 billion yen."

Through the magic of math, 5.8 billion yen converts to $63.6 million. Nintendo also reported that it sold 3.06 million Wii U consoles worldwide through the end of 2012. That means that the average loss per console sold comes out to be $20.79.

Console makers selling their consoles at a loss is nothing new for Sony and Microsoft who have taken the razor and razor blade approach to their gaming divisions. That's typically not the case for Nintendo though as it has always tried to make a profit on the consoles that it launches.

The only other recent example was the Nintendo 3DS which initially sold at a profitable $249.99 when it released March 2011. When sales weren't meeting expectations, Nintendo dropped the price to $169.99 in August of that year which made the handheld unprofitable. The 3DS returned to profitability by June 2012.




http://www.examiner.com/article/nintendo-loses-almost-21-for-every-wii-u-sold

Note: The 3DS was about $60 profit per unit before the price drop
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#2Beatperson14Posted 1/30/2013 12:36:24 PM
Oh look another Panda topic

He's trying guys! Leave him alone!

I wish I could sage here
#3KAMMYqueenPosted 1/30/2013 12:37:19 PM
Beatperson14 posted...
Oh look another Panda topic

He's trying guys! Leave him alone!

I wish I could sage here


are you calling him a troll?
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U
#4icarus231Posted 1/30/2013 12:38:54 PM
They are profitably that is all that matters. When they start selling their buildings i will start to worry.
#5DarthFloatyPosted 1/30/2013 12:40:42 PM
Cool. I always thought it was closer go about $10.
#6DiscostewSMPosted 1/30/2013 12:43:37 PM
If Nintendo is losing $21 per system, but breaks even with one game sold (meaning both break even to offset loss), then the games themselves would break even by themselves if they around the range of being $21 cheaper?
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#7Reflex-ArcPosted 1/30/2013 12:43:57 PM
This is how you post negative news about the Wii U. Note the lack of a snarky post script or idiotic reference to Nintendo's demise. Just the news posted in a way that welcomes civil discussion.

Thank's Panda. You are a valuable member of this forum.
#8b1gt0nePosted 1/30/2013 12:51:20 PM
Reflex-Arc posted...
This is how you post negative news about the Wii U. Note the lack of a snarky post script or idiotic reference to Nintendo's demise. Just the news posted in a way that welcomes civil discussion.

Thank's Panda. You are a valuable member of this forum.


Agreed
#9teamaquashockPosted 1/30/2013 12:52:30 PM
Reflex-Arc posted...
This is how you post negative news about the Wii U. Note the lack of a snarky post script or idiotic reference to Nintendo's demise. Just the news posted in a way that welcomes civil discussion.

Thank's Panda. You are a valuable member of this forum.

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#10Board_hunter567Posted 1/30/2013 1:00:02 PM(edited)
Reflex-Arc posted...
This is how you post negative news about the Wii U. Note the lack of a snarky post script or idiotic reference to Nintendo's demise. Just the news posted in a way that welcomes civil discussion.

Worth repeating.

Anybody have any idea on when they expect to profit off hardware alone? It's pretty unusual from them to go this route from the start unless they planned to start profiting soon after.