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Nintendo won't sell NX at a loss

Kimishima explains why he won't repeat Wii U's launch strategy, expects new system to quickly make up for Wii U sales decline

Nintendo president Tatsumi Kimishima has said the company isn't planning on selling the Nintendo NX at a loss. In a post-earnings Q&A with investors last week, the executive said the company isn't considering pricing its next system at anything less than break even.

While other console makers have frequently sold hardware at a loss with the intention of making up that money through software sales, Nintendo has almost never used that strategy. One notable exception was the Wii U.

"When Wii U was launched, the yen was very strong," Kimishima said. "I am assuming that situation will not repeat itself. Selling at a loss at launch would not support the business, so we are keeping that mind in developing NX."

Kimishima also commented on lowered expectations surrounding the Wii U, and how quickly the NX business will make up for the legacy console's flagging performance.

"We are predicting about 800,000 Wii U hardware sales in the fiscal year ending March 2017, which is a decrease of about 2.4 million units compared to the previous year," Kimishima said. "NX and smart device business will be essential to cover this gap, but we also expect download content business to play a role. However, we are planning with the expectation that NX sales will compensate for much of the impact on sales from reduced Wii U hardware sales."

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Latest comments (1)

Jordan Lund Columnist 3 years ago
The razor/razor blade model only works if you actually release software to make up the profit differential.

1-2 titles a year on a console sold at a loss, won't make up ground.
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