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Thursday, 08 August 2013 08:09

Nintendo still losing money on Wii U

Written by David Stellmack

Likely means no price drop anytime soon

Nintendo is losing money on every Wii U they sell. The news comes as part of the company’s financial results that were recently released. The financial results confirm the rumors that the company has been losing money on the Wii U since it was released.

The fact that the company is losing money on the Wii U hardware contributed to the $387 million dollar operating loss for the past financial year. The Wii U continues to struggle, with third party software publishers not wanting to dedicate resources to producing software for the Wii U and rumors continuing of major retailers cancelling or reducing their Wii U orders. None of this is good news for Nintendo or the Wii U in general.

Right now, it would seem that Nintendo isn’t in a position where they could drop the price of the Wii U hardware; but as the company has shown in the past, they can change course and drop the price if they have to. However, we would not count on seeing that happen anytime soon.

A number of analysts that we have spoken with seem to believe that dropping the price could help the Wii U as it did for the 3DS when it was struggling. Still, the Wii U needs more software support, and without it everyone seems to believe that the console will continue to struggle. When you can’t play many of the latest games on the Wii U, you have to know that your console is struggling.

David Stellmack

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