We have all heard that the Wii U is being sold at a loss for Nintendo, but keep in mind that the price you pay does provide profits for the retailer’s. We have not been told exactly how much Nintendo is losing on each console, and really it doesn’t matter.
Our Friend Reggie disclosed to the Mercury News that if just one game is purchased alongside the Wii U, the console is profitable. With an attachment rate of about 2.4 games per console sold, it is looking that Nintendo is making some money.
Reggie says, “The business model doesn’t change dramatically, in that 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 ratio 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.”
So, how many games have you purchased alongside your Wii U?
