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Was the Wii U sold at a loss?

It was only after the company slashed the price and started taking a loss on each unit that the system began to selling enough to sustain itself through software support (though the turnaround wasn't immediate, and major first-party releases from Nintendo helped).

arstechnica.com - Nintendo: Wii U still being sold at a loss | Ars Technica

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Last October, Nintendo made some waves by announcing that the Wii U would break company precedent and be sold at a loss at launch. That state of affairs was likely to be temporary, though, as the component costs, design streamlining, and mass production would bring manufacturing costs down over time. As it turns out, the basic state of affairs hasn't changed too much yet, as Nintendo tells GamesIndustry.biz that the Wii U is still being sold at a loss, nearly nine months after its launch. While the news isn't too surprising given how long the system has been on the market, it's not a great bit of data for Nintendo, which is still struggling to sell the Wii U at its current price of $300 for a Basic 8GB system and $350 for a Deluxe 32GB unit. Nintendo is still working to return to what President Satoru Iwata calls "Nintendo-like profits" after posting a historic annual loss last year. Continuing to sell systems at a loss won't directly help that state of affairs, but plenty of other companies have done just fine selling their systems at a loss and making money on software licensing. Nintendo of America President Reggie Fils-Aime previously said that the company turns a net profit after selling just one piece of software with a Wii U, but he later corrected that to say the actual number is "more than one." In any case, recent history has proved that trying to protect profits on hardware can actually do more harm than good to the overall success of a game system. Nintendo made money on every 3DS unit it sold when the system launched at $250 in early 2011, but it failed to sell as many systems as it expected at that price. It was only after the company slashed the price and started taking a loss on each unit that the system began to selling enough to sustain itself through software support (though the turnaround wasn't immediate, and major first-party releases from Nintendo helped). Is a similar bold move in the works for the struggling Wii U? Last we heard back in January, Nintendo said a price drop wasn't in the cards, and it insisted it just has to do a better job selling the system's "value" to consumers. If the Wii U continues to have trouble gaining retail traction through this holiday season, however, that kind of talk is going to seem emptier and emptier.

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