Wii Hardware To Be Profitable At Launch

Next Generation reports on comments by Nintendo's Reggie Fils-Aime, stating that the Wii will be profitable out of the gate. It's been well-publicized that the consoles offered by Sony and Microsoft are subsidized by those companies. From the article: "Nintendo, however, has traditionally avoided the 'razor and blades' business model by selling its consoles above what they cost to make. Fils-Aime confirmed to Reuters that the Wii would carry on the tradition. 'We will make a profit on the entire Wii proposition out of the box -- hardware and software,' he said. '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.'" The comment is undoubtedly meant to assuage analysts nervous about the relatively late release date and somewhat higher than expected price for the Wii.

Comments

nice to know

[legallyillegal]

nice to know that nintendo is using cheap parts

also..

[cheftw]

Also the Wii will featurea system whereby you will be alerted to the obvious every thirty seconds. Developers hope to make sure that people don't lose their minds while playing and decide to hartm themselves.

Ugh. If I wanted a Wii I'd keep playing my PS2

[Frobozz0]

There's a good reason why the Wii will be profitable at launch. It's last generation hardware.