Nintendo to sell Wii U at a loss

In what many consider to be a strange move, Nintendo has revealed that the Wii U, it's new home console, will be sold at a loss. It's a move that contradicts Nintendo's console sales strategy in which the company's consoles typically yield profit from each unit sold.

“Manufacturing costs are expensive, and we priced the machine at a level customers would accept,” Nintendo President Satoru Iwata said at a press conference today. “It’s important for us to develop a healthy business next fiscal year by combining sales of hardware and software.”

It's assumed that the combination of the touchscreen GamePad and strong yen have led to an increase in costs of manufacturing the Wii U. Earlier today, Nintendo released somewhat disappointing half-year sales numbers resulting in the company lower its yearly revenue forecast from 20 billion yen (about $251 million) to six billion yen ($75 million).

The Wii U will be offered in two separate packages: a basic White version with the GamePad, 8GB of storage, and no additional accessories for $299.99; and the Deluxe version which comes with the GamePad, 32GB of storage, a copy of Nintendo Land, and accessories for $349.99.

The Wii U will be available on November 18, 2012 here in the U.S., but early pre-order numbers indicate a strong launch for the new console, which Nintendo hopes will sell 5.5 million units by the end of the fiscal year on March 31, 2013.

[Examiner]