UPDATE: It seems that Nintendo’s profit is a bit more complex than David Gibson let on. Satoru Iwata actually said the following.
“With respect to the impact of Wii U hardware sales on profit and loss, in order to sell 3.60 million units, we have to produce some more hardware units on top of our current hardware inventory. However, since the loss arising due to the hardware production costs being higher than our trade price was taken into account in the previous fiscal year, you could assume that there will be almost no loss this fiscal year for the sales of the 3.60 million hardware units.”
This means that Nintendo will continue taking an overall negative gross profit margin on the Wii U until their previous shipments of hardware have sold their current inventory.
It’s been a while since we’ve heard anything outright positive about Nintendo’s latest home console, but in their investors’ meeting, Satoru Iwata finally spread the good news that the Wii U is no longer being sold at a loss. With the company expected to implement new strategies to improve sales of the struggling console, it’s a breath of fresh air to know they’re no longer losing money while doing so.
Released in November 2012, the Wii U’s $350 price tag was already putting Nintendo in the red, and with the $50 price drop before the 2013 holiday season, Nintendo’s profits dipped even further. But even with the rather conservative prediction that the company will move 3.6 million units this fiscal year, at least they expect to do so while making a profit.
It’s refreshing to hear some good news about the iconic game company’s floundering console, and hopefully this is only the start of many good things to come for the Wii U. Could the cobwebs be clearing for Nintendo’s latest home offering? Share your thoughts in the comments section.
Updated Source: Nintendo
WiiU target of 3.6m units will need more manufactured than in current inventory, no loss from hardware any more, more games at E3
— David Gibson (@gibbogame) May 8, 2014