Nintendo Wii U to be sold at loss

Nintendo has confirmed that it will lose money on every sale of its Wii U console at launch. The Japanese firm's president revealed the news after the firm cut its profit forecast. "We had to book a loss on the hardware, which is currently in production and will be sold below cost," said Satoru Iwata. The firm might ultimately make money through add-on sales and by cutting its manufacturing costs at a later stage. It marks a change in the company's business strategy. Ahead ofhe launch of the original Wii console in 2006 Nintendo's US boss, Reggie Fils-Aime, told Reuters: "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." Sell now, profit later The decision to abandon the prospect of immediate profits in order to maximise later earnings is part of a growing trend in the tech world. Researchers at IHS iSuppli estimated that Sony lost $300 (£186) on every 20GB model of its original PlayStation 3 console in 2007. Although the company never confirmed the figure, it did acknowledge that it was not until 2010 that the machine became profitable. Microsoft pursued a similar strategy with its Xbox 360. More recently Amazon's chief executive Jeff Bezos revealed to the BBC that it sold its new Kindle tablets and e-readers at break-even prices. IHS iSuppli has also suggested that Google is selling the 8GB Asus-made Nexus 7 tablet for the same price it costs to manufacture, ship and advertise the machine. Troubled by tablets Nintendo might have altered course to take advantage of the fact that neither Microsoft nor Sony have announced their next-generation consoles yet. Please turn on JavaScript. Media requires JavaScript to play. //

Nintendo Wii U to be sold at loss 2012-10-27T12:07:00-07:00 Rating: 4.5 Diposkan Oleh: Undercover 999