Wii hardware to be profitable at launch

by Blake Snow { Sep 14th 2006 at 7:00PM }

Reuters is reporting via an interview with President Reggie Fils-Aime that Nintendo's new Wii console (read: five year-old pimped out GameCube) will be profitable the day of launch. From the interview: "We will make a profit on the entire Wii proposition out of the box -- hardware and software... That really is a very different philosophy versus our competitors. We are a company that competes only in the interactive entertainment space so we have to make a profit on every thing we do."

While the company invested in R&D on promising motion-sensing controls and by adding RAM and a supercharged processor, it's no secret that Wii uses inferior computing technology like the DS before it. So is profiting off older technology a bad thing? Not at all. Show me great games, and Nintendo can profit off this blogger all they want.

[Thanks to all that sent this in]

Reader Comments (Page 1 of 2)

Tom Dietrich @ Sep 14th 2006 7:04PM

There is nothing "inferior" about 12 hours of battery life.

Jess Ragan @ Sep 14th 2006 7:06PM

Profitable yes, but entertaining...? I have my doubts.

JR

Ken @ Sep 14th 2006 7:10PM

Looks like they won't be making a profit off me until next summer. If I make it that long. Wii seems like a good solution to the summer game dry spell.

m4ndo @ Sep 14th 2006 7:15PM

This makes you wonder if they couldn't lower the cost a little bit more.

And I have a question about the wiimote. Is the speaker in it a microphone too? Is that supposed to take the place of a headset for online play?

TSHBO!! @ Sep 14th 2006 7:10PM

ahh more proof that all Nintendo give a shit about is making profit, Go to hell Nintendo, you want be getting my money you greedy sons of b*****!

Fischsticks @ Sep 14th 2006 7:11PM

Yes because nintendo taking the wii in a different direction than the gamecube makes it a pimped out gamecube but when microsoft and sony make the graphics prettier then its next gen?

dick @ Sep 14th 2006 7:12PM

Nintendo is going the way of Apple (in the PC realm). They have a dedicated fan base, and they're going to milk them for everything they can, without really worrying too much about expanding their audience.

Fanboys who declare Nintendo will be #1 this generation are idiots. They cater to kids and fanboys.

But then again I cant wait to play the plethora of Wii titles:
Dragon Ball Z Budokai: Tenkaichi 2
Chicken Little: Ace in Action
Disney's Meet the Robinsons
The Ant Bully
The Grim Adventures of Billy & Mandy
Super Monkey Ball: Banana Blitz
Avatar: The Last Airbender
Barnyard
Cars
SpongeBob SquarePants: Creature from the Krusty Krab
Teenage Mutant Ninja Turtles
Ice Age 2: The Meltdown
Open Season

unknown @ Sep 14th 2006 7:12PM

So they are over pricing it. New consoles should have Next gen. hardware if not then having old hardware should mean a lower price.

nothing dude @ Sep 14th 2006 7:12PM

by the way, has anybody seen the new red steel movie on ign.com. Let me just tell you that i could've given a shit about the game before, but now it looks like the best looking game on the Wii... next to mario galaxies of course.

nick @ Sep 14th 2006 7:13PM

oh yeah TSHBO, there not a company ya know they dont need to pay for anything! They also arent charing 400 or 500 or even 600 dollars for a rehash of games...

El Hajjish @ Sep 14th 2006 7:14PM

Of course Nintendo cares about making a profit. That's what companies do. Are you saying Sony and Microsoft are charitable organizations?

Fischsticks @ Sep 14th 2006 7:14PM

@ #4
yes nintendo is a business and they care about profits... Nintendo is trying to innovate and make money... How dare them! Yes Nintendo doesn't care about anything but profits that's why they fixed all those ds lites for free when if it was sony you would have had to buy a new product

socrates @ Sep 14th 2006 7:15PM

I'm glad they're boasting about their profit margin. Kinda awful timing though. A gaggle of rabid fans were boasting about Nintendo's profitability themselves, but now that facts have hit home and their dreambox is yet again a pumpkin with Zelda on it....this is apt to irk a few folk.

But on the bright side....EXCITE TRUCKKKKKKKKKKKK!!!!

WHOOOOOOOOOOOOOOOOOO!!!

Whoo!

Whoo.

Shaun @ Sep 14th 2006 7:16PM

if you don't want a Wii then i suggest you hold it, keep it to yourself and have a Wii later when no-ones around to see!

cringer8 @ Sep 14th 2006 7:16PM

Nice, Blake. Flaming in a post to generate hits. You're really classy. A new processor, new graphics card, new control method, new media, new output resolution, new online capabilities, new name, new style...yeah, this is a Gamecube alright.

You should be fired and Robert should be rehired, putz.

AssemblyLineHuman @ Sep 14th 2006 7:17PM

This is one thing I do not support Nintendo in. If they would take the ~$80 losses (production costs purely baseless speculation on my part) and sell the console for $150, it would sell far better. If they would take the ~$130 losses (again, speculation) and sell for $100, every gamer would buy one, and it wouldn't seem like a farfetched investment to the average non-gamer. Of course, Nintendo could be planning on a $50 price drop after the launch units or something similar. In that case, aside from aggrivating the people who paid $250 for the console, that would be a good decision for Nintendo.

From a consumer standpoint, I'm slightly annoyed that Nintendo is so uptight about taking losses when it is pretty much standard in the game industry. Of course, I'm not passing up on the Wii because Nintendo is cheap; it's still lower-priced than the other two consoles and looks to provide a fresher experience.

Erik Novak @ Sep 14th 2006 7:18PM

What people tend to forget is that more power and newer technology ALSO brings with it new experiences, not just prettier graphics. There are games like Dead Rising that will never appear on the Wii because of the sheer power it takes to generate all those zombies on the fly.

I work for a company working on next gen games, and I'm not at liberty to say how or why, but I can guarantee people that the extra power of the 360 and ps3 will bring brand new factors into gameplay that weren't possible before. Now personally, I'll vouch for the 360 because of the game lineup and price tag, but I'm sure ps3 will have a few cool things out of the gate as well.

REMEMBER! More power = new experiences, not just pretty graphics. To many the Wii offers a new experience with the Wiimote, but I'm sure they'll be looking at the other systems and wanting the experiences they have to offer that can't be pulled off on a Wii.

Ryan @ Sep 15th 2006 10:07AM

There's nothing wrong with making a profit off of the Wii consoles. Look at the ipod: all it has on it is storage space. It's the intuitive, easy-to-use interface that make it the must-have item of today. I also disagree with those that say the Wii is a "five year-old pimped out Gamecube."

The Wii's GUI is more capable than you think. If they can pull of Resident Evil 4 and Twilight Princess on Gamecube hardware, imagine what can be done with Wii hardware.

As far as the games are concerned, so long as Nintendo intends on treating the Wii as it does its Nintendo DS (awesome games, new styles of play, million-seller after million-seller, steady flow of great games) then the Wii will take off. The launch will be stellar, no doubt about that. It's the year 2007 that worries me, however. I hope the bigger franchises make the switch to Wii. I'm looking at you, SquareEnix and Konami.

-Ryan

cringer8 @ Sep 14th 2006 7:21PM

@ Erik

Why can't people buy all three? Fanboy.

Daniel Kou @ Sep 14th 2006 7:26PM

i think they are making it profitable just so they dont take a loss if the wii doesnt succeed

El Hajjish @ Sep 14th 2006 7:22PM

AssemblylineHuman, the reason Nintendo can't take massive losses is because it just makes video games. Sony and Microsoft can take a massive hit at the beginning because they can funnel money in from their other hardware and software ventures.

striderhayasa @ Sep 14th 2006 7:23PM

@TSHBO

Are you mental? Show me a company that doesn't operate for profit. Get a clue.

It's not the profitability that bothers me. The Wii has great potential, the entire affair...but there are little details that both me. No online at launch is a blunder. After playing over 124 hours of Metroid Prime Hunters, 93 hours of that in multiplayer alone, I think Metroid Prime 3 should be online without question.
Some of the pricing is a bit questionable. We beat that to death already so I'll leave it at that. I would say the limited storage (512MBs) is very disappointing but I have a 40 GB HDD that's just waiting for the Wii to grace my apartment.

I'm loving the expert controls for Metroid and hope Red Steel and others follows that set-up. It reminds me of the first time I played the Metroid Prime Hunters demo. Great potential for FPS with the touch screen. I expect the same here.
I'm still interested in trying Excitetruck, Rayman looks bizzare but fun, Fire Emblem....I'm there. Love it on GBA, Bleach...I'll pass. Looks too much like the PSP version but I could be wrong. Nintendo has some really interesting new software in their montage that's been making the rounds on the web as well as old favorites. It a strong showing for sure. I'm fine with the power of the Wii.
I just wish Nintendo would have gone for the kill with a better price point and an earlier launch.

Silver @ Sep 14th 2006 7:23PM

"I'm slightly annoyed that Nintendo is so uptight about taking losses when it is pretty much standard in the game industry"

Yeah, standard for companies who have loads of cash from other ventures and can afford to flush huge wads of cash down the toilet in the pursuit of the elusive "cool" image.

Nintendo is the only one of the three using any business sense in the new console wars. Let Sony and Microsoft drain each other's coffers - Nintendo gets my money this time. Even if they remain a minority player - they'll still be the only ones making money.

Maybe @ Sep 14th 2006 7:23PM

I'm telling you guys, the big 3 don't care about you!!!

Sony and Microsoft only care about being #1, they don't really care about you, they're using you!!! Nintendo doesn't care about you, they just want to make a profit off of you!!!!

There, I said it for all of us! Why do you cry over this, it's business.

Jess Ragan @ Sep 14th 2006 7:27PM

That's a lame argument, Richard (can I call you Dick? Good, 'cuz I will as often as possible). Just how many of those games are going to be ported to Sony and Microsoft's systems? Answer... nearly all of them. I'm more concerned with how those games will play on the Wii, and about the third party support that the system will receive.

By the way, real gamers will enjoy great games even if they star silly cartoon characters. Only the Icy Hot Stuntaz who think the video game world begins and ends with Halo would reject a game based solely on a cameo appearance by Mickey Mouse or Spongebob Squarepants.

JR

Erik Novak @ Sep 14th 2006 7:26PM

#18, sure they can buy all 3, but I'm personally getting Wii60, and it's their pocketbook to make that decision. There are a few games on ps3 that entice me, but not for what they're asking.

Chris Taran @ Sep 14th 2006 7:26PM

"Nintendo's new Wii console (read: five year-old pimped out GameCube)"

Am I the only one that sees the irony in the fact that the person that rips into Nintendo the most on this site also happens to run a Nintendo blog when not posting for Joystiq? In case you aren't aware of the site: www.infendo.com

Daniel @ Sep 14th 2006 7:27PM

"I'm slightly annoyed that Nintendo is so uptight about taking losses when it is pretty much standard in the game industry."

MS and Sony are fighting for short term supremacy, Nintendos business model tells me they're in this industry for the long haul.

Core_12 @ Sep 14th 2006 7:28PM

lol says me @ your whining. Listen to yourselves.

"Nintendo only cares about profit... Nintendo can't entertain me... Nintendo fanboys are kids... Nintendo is just milking out its fanbase... Nintendo isn't expanding its audience..."

It's hilarious to read your comments when obviously you have absolutely no idea what the hell Wii is even about.

#5 that's the best comment I've read in ages, although written in poor English.

El Hajjish @ Sep 14th 2006 7:27PM

Striderhayasa...

Just a heads-up, Metroid Prime 3 has been delayed until early 2007, and some people are speculating the desire for online play may be a big part of that. So there's still hope!

Dario @ Sep 14th 2006 7:29PM

to quote Cartman:

"Screw You Guys, Im Going Home"

what ever happen to the good ol' days

bobby @ Sep 14th 2006 7:44PM

give me the freaking specs already, if you are going to charge $250 show me the freaking specs that justify it.

aj @ Sep 14th 2006 8:21PM

I have a feeling that the first price cut will be for next years holiday season and it will be a $100 price cut to $150 dollars. I think it might be possible that they are milking the hardcore gamers first and then they'll go after the casual gamer next year.

PSWii360 Fanbot @ Sep 14th 2006 7:34PM

Isn't the 360 just a "souped up" Xbox? Ooohh, HD, more expensive controllers, a larger power brick and more red lights of death! Sweet upgrade from the original.

Wolfman @ Sep 14th 2006 7:36PM

"We are a company that competes only in the interactive entertainment space so we have to make a profit on every thing we do."

i.e. We don't have tons of cash from selling operating systems or media devices.

Do or die. End discussion.

AoE @ Sep 14th 2006 7:38PM

@TSHBO, did you just step out of a soviet time machine or something? It may shock you to know, ALL publicly-traded companies are in it for the money. Nintendo wants your money, Sony wants your money, Microsoft wants your money, every game publisher wants your money... welcome to capitalism!

However, wanting to be profitable doesn't automatically make a company evil, the way that you conduct your business is what determines that.

1up_clock @ Sep 14th 2006 7:36PM

"Fanboys who declare Nintendo will be #1 this generation are idiots."

And fanboys who declare they won't don't know the most glaring bit of gaming history.

THE LEAST POWERFUL CONSOLE ALWAYS COMES OUT ON TOP.

In terms of technical power:
NES < Sega Master System (NES won)
Game Boy < Every other handheld (GB won)
SNES < Genesis (SNES won)
Playstation < N64 (PS won)
Playstation 2

Jon @ Sep 14th 2006 7:37PM

@ 17

"I work for a company working on next gen games, and I'm not at liberty to say how or why, but I can guarantee people that the extra power of the 360 and ps3 will bring brand new factors into gameplay that weren't possible before."

im not at liberty to say how i know, but the phantom console will blow the wii/ps3/360 out of the water.

:rollseyes:

RiemannMeetLebesgue @ Sep 14th 2006 7:40PM

I am sick to death of the people here who know nothing about business. Nintendo is a video game company. It cannot afford to lose money on a console like Sony and MS can because it doesn't have millions of billions of dollars from other areas to eat up those costs. It HAS to make at least a little on the console. Seriously, get with the program, stop whining about companies actually making *shudder* profits, read up on video game history, and just enjoy the Wii for it is - one hell of a cool system.

Jon @ Sep 14th 2006 7:41PM

@ 25

"Am I the only one that sees the irony in the fact that the person that rips into Nintendo the most on this site also happens to run a Nintendo blog when not posting for Joystiq? In case you aren't aware of the site: www.infendo.com"

controversy can be good, i bet jostiq's site traffic has skyrocketed with these provocative blogs :P

Blake Snow @ Sep 14th 2006 7:45PM

cringer8: I thought I equally flamed and complimented Nintendo, but I wasn't trying to get people in a hissy. The obvious point of the story is that "of course" the Wii will be profitable because Wii costs less to develop. Granted, I was facetious in my choice of words, but let's call a spade a spade here: Wii is inferior technology. So is the DS. But that doesn't stop the latter from being my favorite platform over the last year and a half.

Chris Taran: (See above). Just because you like a company, blog specifically about them, and are a fan of most their products, doesn't mean you can't criticize them. I will remain a Nintendo enthusiast so long as they develop products I'm interested in.

Berserk920 @ Sep 14th 2006 7:47PM

Wow seems like alot of people here like to resort to negative assumptions (Nintendo being greedy). I’m no fanboy but I do know idiots make negative assumptions without solid proof of things. There are many different factors consumers fail to take into account when making assumptions.

And as for "So is profiting off older technology a bad thing?"

I’m sure Nintendo has spent quite a bit on maximizing the performance vs power consumption, as well as controller development. Technology doesn’t just fall into people’s hands without expenditures. I think Nintendo may have spent more then what people realize on development. Is it a crime for them to make a profit? Companies aren’t supposed to market a product to lose money on it.

I’ll be looking forward to buying this console. It will look nice sitting next to my XBOX 360 ;)

1up_clock @ Sep 14th 2006 7:46PM

ARRRRRRRRGH. COMMENT WAS EATEN UP WHEN I SUBMITTED. LET'S TRY AGAIN.

"Fanboys who declare Nintendo will be #1 this generation are idiots."

And fanboys who declare they won't don't know the most glaring bit of gaming history.

THE LEAST POWERFUL CONSOLE ALWAYS COMES OUT ON TOP.

In terms of technical power:
NES < Sega Master System (NES won)
Game Boy < Every other handheld (GB won)
SNES < Genesis (SNES won)
Playstation < N64 (PS won)
PS2 < XBOX + GC (PS2 won)
DS < PSP (DS is still winning, despite what fictional numbers Sony fanboys like to come up with say)
Wii < XB360 + PS3 (Tee-hee-hee)

I'm not saying Wii will come out on top, I'm just saying that history repeats itself, which is a fact of life.

Oh, and nice "plethora" of games there. I like how they're all crappy licensed games. Considering that your word is law, I guess that means Zelda, Smash Bros., Mario Galaxy, Red Steel, and all the other awesome first-party games have been cancelled.

Seriously, come back when you reach puberty, kid.

schtum @ Sep 14th 2006 7:47PM

Seriously, when did everyone turn retarted? Nintendo has always made a profit on hardware. And no, making a profit is not a bad business decision. How about all the 15 year olds here shut up about how a 120 year old company has no idea how to run a business?

dizzle @ Sep 14th 2006 7:55PM

where are all the nintendo fanboys that were saying sony and ms are evil and only wanted your money and didnt care about you like nintendo does???? oh how the tables have turned.........

Matt @ Sep 14th 2006 7:51PM

I think Nintendo should become a non-profit organization just so they can appease some of the people on this site. They can invest in R+D, make kick-ass systems, overwork their employees and not make any profit whatsoever so that the fans on this site who gripe can be happy with their 'next gen' system that Nintendo lovingly made just for them, completely selflessly. It will have all the graphical flourishes of the PS3 and 360 - all for 5 bucks. Take THAT, M$ and Sony!!!!!

Seriously, get real people. Good for Nintendo for having a reasonable business plan/model.

Chris Taran @ Sep 14th 2006 7:55PM

@39 Blake

Just so you know, I wasn't trying to be negative towards you when I said that. I just love the fact that you, being a big fan of Nintendo, also happen to be one of the most critical. Which, by all means, makes sense. I just can't help but find the dichotomy at least slightly amusing though. :)

Jay @ Sep 14th 2006 8:07PM

I don't care. I'll be buying a Wii in March 2007 if Argos were right.

lala @ Sep 14th 2006 7:57PM

Thank you RiemannMeetLebesgue. People are forgetting that Nintendo is a fairly small, specialized company in comparison to monolithic giants like Sony and Microsoft. Of course Sony and Microsoft can afford take a profit hit on hardware, they'll just make up the profit in some of the thousands of other products they make.