It’s been well cited that Nintendo Wii U is so cheap, the company is selling it at a loss. But Nintendo of America President Reggie Flis-Aime says the gaming giant has a better way to make profit.
And all it takes is one game sale.
According to “The Regginator”, as he’s known in gaming circles, getting Wii U users to buy just one game turns the Wii U console transaction “profit positive”.
“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.” He told website Mercury News when asked about selling Wii U at a financial loss.
“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.”
Meanwhile, GameStop (the American version of EB Games) disclosed recently that Wii U’s game “tie ratio” (the amount of games bought per console) is at a very respectable 2.4 meaning for every Wii U sold, 2.4 games have been purchased.
Needless to say, this would suggest Nintendo are making quite a bit of profit off the Wii U already, sealing it in as a successful launch for the company.
In the same interview, Reggie revealed that the stock levels for Wii U were much higher for launch when compared to the stock levels of Wii. Despite this, stores still reported sell outs across the country just hours after the new console went on shelves. More stock is expected to hit US stores by the end of this week.
Nintendo Wii U goes on sale in Australia, New Zealand and Europe on November 30, 2012.