Wii U Will Initially Sell at a Loss

News has broke that the Wii U will sell at a loss when it launches in only a few weeks time. Nintendo President Satoru Iwata has said that the console's price is "below cost." This would account for the companies recent 'profit warning' although the 3Ds is no longer selling at a loss.

In the full ststement Iwata said:

"In addition to the yen's continuous appreciation, the Wii U hardware will have a negative impact on Nintendo's profits early after the launch because rather than determining a price based on its manufacturing cost, we selected one that consumers would consider to be reasonable. In this first half of the term before the launch of the Wii U, we were not able to make a profit on software for the system while we had to book a loss on the hardware, which is currently in production and will be sold below cost. Our loss has therefore widened during the second quarter in spite of bringing the Nintendo 3DS hardware back to profitability. Although we expect our financial performance to be revitalized, under these circumstances, unfortunately we cannot say that we will achieve "Nintendo-like" profits within this fiscal year."

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