Why Nintendo is Losing Money on Each Wii U Launch Unit

Nintendo is counting on a strong launch for the Wii U next month to help return the company to profitability this fiscal year, but the hardware itself isn’t going to contribute anything to that bottom line. Nintendo has revealed that the Wii U will be sold below cost in order to attract more potential customers for what it hopes will be stronger-than-normal software launch sales.

“Rather than determining a price based on [the Wii U’s] manufacturing cost, we selected one that consumers would consider to be reasonable,” Nintendo President Satoru Iwata said

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