
While everyone else (i.e. Microsoft and Sony) would rather make expensive consoles and sell them cheaper than their manufacturing cost, hoping to make up for the loss through software sales, Nintendo are doing the smart thing: they're selling cheap Wiis, and making them even cheaper! So instead of losing money with every unit they sell, Nintendo will actually turn a profit from day one of the console's US launch, on November 19.
In an interview with Reuters, the president of Nintendo of America, Reggie Fils-Aime said that:
"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." Because of the Wii's relatively cheap price ($250) and low development costs, analysts are starting to predict even better numbers than previously announced by Nintendo. By March 2007, the company might crush the 6 million mark it set for itself, and sell as many as 8 or 9 million units. At least in a highly optimistic scenario.
And all that, despite the fact that the final Wii specifications are lacking DVD playback, a feature that many have been hoping for. Also, speaking to GamesIndustry.biz yesterday, a Nintendo UK spokesperson admitted that the Wii console is region-locked after all, despite comments from Nintendo of America to the contrary - who admittedly made a mistake in saying otherwise. So much for imports then.




