Nintendo of America president, Reggie Fils-Aime, confirmed that Wii U consoles are being sold at a loss, but he noted that this loss is not as significant as a lot of people have come to believe.
"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," he explained.
"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."
GameStop has reported earlier that the Wii U attach rate is 2.4 games per console (i.e. buyers purchase 2.4 games on average when buying a new Wii console). It seems that Nintendo doesn’t have to worry about Wii U profit margins after all.