Once again Nintendo confounds the conventional wisdom in the game console business. Not only is their forthcoming game console, the Wii, low priced and only designed for gaming, but they don’t plan on losing money in launching it:
Japanese game software and console maker Nintendo Co. said on Wednesday it is unlikely to lose much money on the launch of its new “Wii” video game console, in sharp contrast to rival Sony Corp., which expects a hefty loss on the debut of its PlayStation 3.
And Microsoft whose Xbox 360 is bleeding red ink.
“We can’t promise we won’t have even a one-yen loss, but we are not expecting an enormous loss,” Nintendo President Satoru Iwata told a news conference. “It is a strange notion that a game console always leads to mounting losses in the beginning.”
“We are working to make the Wii business a healthy one from the first year,” he added.
Rooting for the underdog is a perilous business predictor, but you have to admire Nintendo’s determination to chart their own distinct course.
Also in the article, Nintendo said it would announce exact prices and launch dates in September.