Nintendo expects Wii will only make a small loss

Posted on Thursday, June 08 2006 @ 10:21 CEST by Thomas De Maesschalck
Contrary to Sony which expects to lose $884 million on the sales of its PS3 console, Nintendo only expects a small loss on the sales of its Wii console.
Game machines manufacturers often lose money on initial console sales, but recoup those losses over the life of the product through software sales. Sony expects to post a 100 billion yen ($884 million) operating loss at its game division in the current fiscal year due to costs related to the PS3 launch.

"It is a strange notion that a game console always leads to mounting losses in the beginning," Nintendo President Satoru Iwata told a news conference. "We can't promise we won't even have a one yen loss, but we are not expecting an enormous loss."

Iwata added that overall, Nintendo expected a limited impact on its earnings from sales of Wii for the current business year even if it meets its sales target of 6 million Wii consoles in the year to next March and 17 million units of Wii software.
More details at Reuters.

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Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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