Nintendo's Wii U console becomes profitable with the purchase of just one game, Nintendo of America president Reggie Fils-Aime told Mercury News.
Despite this being the first Nintendo console the company will sell at a minor loss due to a decision to sell the console at a price not based on its manufacturing cost, Fils-Aime states Nintendo will make money on the Wii U once users buy their first game.
"As soon as we get the consumer to buy one piece of software, then that entire transaction becomes profit positive," he said. Fils-Aime did not detail what Nintendo takes in from sales of third party games.
"In the end, the business model is still to drive the install base of hardware,"he added, "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."
Nintendo said in its latest financial report that it hopes to sell 5.5 million Wii U consoles worldwide between launch and the end of its 2012 fiscal year on March 31.
"The fact that we're trying to match [the Wii] is, I think, a step in the right direction," director of product marketing for Nintendo of American Bill Trinen told Polygon recently. "Our goal, of course, is to manufacture as many as we can as quickly as we can."