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Nintendo still selling Wii U at a loss

Mario maker confirms it is still recording a loss for each unit of hardware sold

Those holding out hope for a Wii U price cut to combat system launches from Microsoft and Sony may want to brace for disappointment. A Nintendo representative confirmed for GamesIndustry International today that the company's hardware is still being sold at a loss.

Earlier this week, Nintendo's annual report cited Wii U hardware sales as a major factor in the company's 36.4 billion yen ($387 million) operating loss. In the same document, Nintendo president Satoru Iwata promised investors the company will "strive to regain 'Nintendo-like' profits" in the current fiscal year.

Selling hardware at a loss is a decidedly un-Nintendo-like practice. Iwata made headlines last October when he first revealed the company would be losing money on each Wii U sold. However, the following month Nintendo of America president Reggie Fils-Aime downplayed the significance of the profit shortfall, saying "as soon as we get the consumer to buy one piece of software, then that entire transaction becomes profit positive."

The Wii U launched in November with a white $300 basic set as well as a black $350 deluxe bundle. However the basic set has largely been dropped, with retailers like Best Buy, Walmart, and Target only stocking the deluxe version of the hardware in their online storefronts. Nintendo disputed reports in June that the basic set was being recalled.

[CORRECTION]: The original version of this article misreported the launch prices of the Wii U.

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Brendan Sinclair avatar

Brendan Sinclair

Managing Editor

Brendan joined GamesIndustry International in 2012. Based in Toronto, Ontario, he was previously senior news editor at CBS-owned GameSpot in the US.

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