Wii U becomes profitable with just one software sale
According to Reggie Fils-Aime.
According to NoA's president, its loss-making Wii U swings to profit with just a single game purchase along with the console.
As you may know, Nintendo said its selling the newest Wii U at a loss. However, according to Nintendo of America president Reggie Fils-Aime, the console becomes "profit positive" once consumers purchase one game.
So, he added that Nintendo's "business model doesn't change dramatically."
The Wii U was released in North America last weekend, and will go on sale in Europe on November 30. Nintendo has said it expects 5.5 million Wii U sales in the business year ending March 31, 2013, as well as 24 million Wii U software sales.
"As soon as we get the consumer to buy one piece of software, then that entire transaction becomes profit positive,"
"In the end, the business model is still to drive the install base of hardware, and then to drive a strong tie ration with all of the other software and experiences for the consumer. And if we're able to do that, then we will create significant profit for the company."
NEWS SOURCE #1: Wii-U profitable with just one software sale (via) GameSpot
NEWS SOURCE #2: Wii U profitable after one game purchase (via) CVG
Our thanks to 'Gauss' for this news item!
So there is room for a price drop.
That's good news for people buying it next Christmas.... lol
well by next xmas they will have room to drop the price to make the other two next gen consoles look way overpriced, not only that but devs should have at least made a start on getting to grips with the hardware, look how long it took for devs to manage to get ps3 games looking half decent at the start of the last gen.
Originally Posted by JonathanD
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of course theres room for a price drop, its a last gen slightly revamped.
Originally Posted by billysastard
depending on the acual specs of ms/sonys next systems, how is the wii going to make them look ever priced.
if sony/ms follow suite and actually release a next gen system, your comment is so flawed, like comparing Ferrari to a robin reliant aka the other costs more because its a superior machine.
maybe nintendo fans are happy that nintendo have released another last gen system, and love to have a last gen port wh0re machine with a ifad controller.
but this was the wii's downfall after a year or so the system was at its limit, because it was a revamp last gen (devs were already taking the last gen to its limits) so whats the chances its going to repeat, all we will see is nintendo brag as usual about its high sales, but when it comes to games..... 9% of AA games, 80% the usual nintendo childish/shovel ware games (same as every nintendo system since the n64) the remaining 10% be dummed down next gen games or last gen ports.
how long did it take devs to make games look good on the ps3??? erm MGS4 looked amazing back then, loads of other games also, think your mistaking visuals over the fact devs found it harder to program on the ps3 as they did with the 360.
the 360/PS3 were the only systems that had the best games this gen, why do you think nintendo now want them on their system, shame tho, if nintendo wasnt cheap releasing old spec machines and raking in the profits of their highly priced system (for its specs) they could have had this first time round, not a generation too late.
That's the problem though, the Ferrari price model doesn't fly with consumer electronics, it always leads to a slow adoption rate poor software sales due to a poor install base.
Originally Posted by Diztructor
The list of systems that tried this model is pretty long NeoGeo, 3DO, PS3. With only the PS3 even remotely having a chance of being called a success... I say dragging Sony from the number one selling home console of all time with the PS2 to the PS3 being the third place against even the Wii in sales.... Doesn't that make the PS3 pretty much a failure of epic scale? The PS3 has nearly dragged Sony to it's grave as a company.....
I think when put into perspective that anyone calling the PS3 a success needs to have the fanboy goggles surgically removed. It failed in nearly every sense of the word, with only being barely profitable it's one saving grace.
the difference is, you people see sales as the only thing that makes a system a success.
when its also about the games, but its also about the hardware your buying, both the 360/ps3 didnt hit the sales figures that the nintendo wii did, but they did get better games - these games that are getting ported to nintendos next system.
lets also watch how fast the wii will die as soon as the wii u is launched, nintendo are helping this happen faster by no longer supporting it, so lets see which console is better.
the one that was cheap but limited, lacked games other systems were getting and is dead as soon as a new model is released
a system that has resources to go as long as possilbe, sure may cost a little more, but your actually getting a new system, not a recycled 5 year old system, a system that has better games (not having to wait for a next model to play a ported version) finaly a system that isnt dead just because a new model comes out.
so yea, nintendo manage high sales, but the system is still a revamp and will be limited, sorry but a system is to last these days more than 5 years, the wii u will hit its limit within a few years and like the wii, be littered with shovelware games based on its ifad controller while ms/sony next gen console owners will be getting games that use new engines making a gaming environment even more realistic
About future support your counting your chickens before they are hatched.... PS3 and 360 both failed to hit a high enough market penetration to warrant future support after the new consoles launch. The only reason the PS2 was getting games for so long after the PS3 launch is quite frankly the PS2 had a huge install base, the PS3 was bombing... as a publisher its pretty simple math.
Originally Posted by Diztructor
Put it this way, the DS is still getting new games, you know why? 150 million potential buyers so its hard to walk away from that. Same exact thing happened with the PS2, but because its Nintendo you will ignore it...
again your basing your bs on the basic part of the wii selling more, missing the key fact that once nintendo release a new system its DIES, take a very good long look at DS sales.
Originally Posted by JonathanD
devs will no longer support a system, if its dead, yet a system that continues to sell longer rather than faster, as you can see, gets longer support and better games.
simply compare the games not console sales and youll see this, hence wii u having last gen ports because it lacked them the first time TA DA!!!
Wii U isn't last gen, because there is NO NewGen on the market. Its long time until a new 360 and PS3 comes, and before they are released Nintendo have printed money already from December 2012.
Looking at Wii sales, it looks like people prefer a variety of FUN games over mainly non-innovative FPS games which is getting repetitive after the 200'th release this generation.
A console needs variation to become #1, and thats where a Nintendo console comes in.
People claimed Wii would fail, but instead PS3 failed. Last place have NEVER been a success anywhere.
Do you get a gold medal and honored bigtime for last place in Olympics/Sports? If you are in last place, you have obviously lost unless you live on a different planet.
Good series like Uncharted, Resistance, Killzone etc. never pushed PS3 sales. It doesen't help much when Sony is recycling old Nintendo games. Been there, done that games which is inferior to the originals which is reflected in their sales compared to the originals.
MAG and Socom 4 was flagship PS3 games, and they failed bigtime and Sony closed the studio. Sony closed several studios, because of all the sale failures. It doesent matter how good a game is, when the market dont want it.. does it?
PS4 will be last place next time, because Microsoft prints money like Nintendo while Sony struggles to survive after 5 years with billion loss. It requires alot of money to become #1.
Last edited by Battlefield; 11-22-2012 at 11:24 AM.
Quality of software has little to do with a consoles sucsess, you only need to look at the dreamcast to prove that, I don't know how people got the idea that Nintendo release weak hardware just from the wii alone...
Snes > master system
N64 > PS1
Xbox > GameCube > PS2 > dreamcast(and only a margin between the Xbox and the GameCube)
Xbox 360 > PS3 > wii
wiiu > Xbox 360 > PS3
And if you read all the signs Sony and Microsoft want a slice of that wii pie, smart glass act, all these things will increase system base price if the specs are too high per unit, it makes more sense to do what Nintendo did and rehash one systems specs slightly and sell at a profit for 5-6 years and Sony needs it, A10 is crap APU but their still using it in the ps4, I'd say that keeps the wiiu still up there as the ppc triple core wiiu CPU will outperform an A10, the a10 gets outperformed by i3's in most benchmarks and their older CPUs! Again they all want a slice of the wii pie and will all have an Nintendo inspired control system.
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