Nintendo has struck a positive tone about the launch of its new Wii U. There is not much initial data to support whether the Japanese consumer electronics giant can make much progress against competitors Sony Corp. (NYSE: SNE), Microsoft Corp. (NASDAQ: MSFT) and the army of games designed to be played on smartphones.
In an interview with the San Jose Mercury News, Reggie Fils-Aime, the head of Kyoto-based Nintendo’s American subsidiary, said:
The business model doesn’t change dramatically, in that as soon as we get the consumer to buy one piece of software, then that entire transaction becomes profit positive.
In the end, the business model is still to drive the install base of hardware, and then to drive a strong tie ratio with all of the other software and experiences for the consumer. And if we’re able to do that, then we will create significant profit for the company.
Douglas A. McIntyre