Wii To Be Profitable At Launch
Nintendo’s Reggie Fils-Aime said during a recent interview that the Wii will be profitable “out of the box”.
“We will make a profit on the entire Wii proposition out of the box — hardware and software… That really is a very different philosophy versus our competitors. We are a company that competes only in the interactive entertainment space so we have to make a profit on every thing we do.”
Microsoft has said their Xbox360 loses money on every console sold, and industry analysts think that Sony is certainly loses money on the $600 PS3. But it’s of no surprise that Nintendo will be making money on Wii when it launches, same thing happened with the GameCube vs. PS2 and Xbox.
The main reason the Wii can turn profits from day one is of course the price of Wii hardware. Most of it is built on existing GameCube technology, and is therefore far cheaper, but also less powerful console than its counterparts.
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