Nintendo Sells The Wii U Below Cost
In addition to the yen’s continuous appreciation, the Wii U hardware will have a negative impact on Nintendo’s profits early after the launch because rather than determining a price based on its manufacturing cost, we selected one that consumers would consider to be reasonable.
The Wii and DS series were never sold below cost for their entire lifetime. That was Nintendos’ main distinction between Nintendo and its two rivals, and facilitated their immense immense five year run of profitability.
