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.More details at Reuters.
"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.
Nintendo expects Wii will only make a small loss
Posted on Thursday, Jun 08 2006 @ 10:21 CEST by Thomas De Maesschalck