"We're making money from day one" - Nintendo exec
Nintendo of Canada exec Pierre-Paul Trépanier has told <i>GamesIndustry.biz</i> that the company is already raking in the cash following yesterday's launch of the Wii.
Nintendo of Canada exec Pierre-Paul Trîpanier has told GamesIndustry.biz that the company is already raking in the cash following yesterday's launch of the Wii.
"We make a profit on the system itself," Trîpanier said. "Unlike our competitors, we donât have ulterior motives; weâre not in it to sell HD TVs, or to become the operating system in the living room or anything like that.
"Weâre in the gaming business, and we have to make money from everything we sell - and we are making money from day one on the Wii."
According to Trîpanier, Nintendo is still on track to meet shipment targets for the Wii - and he confirmed that the US will get the lion's share.
"We have 4 million units ready to go, which is something our competitors have struggled with... Historically a bit more than half of our worldwide shipment would go to North America, I think thatâs probably a good estimate."
But despite the healthy stock supply, Trîpanier conceded, the Wii is still likely to sell out this Christmas: "We do estimate there will be supply issues within the first few weeks."
However, he continued, "Weâre receiving a constant supply. Every week there is a flow of product to the marketplace. The extremely complex and sophisticated supply system ensures that product will be delivered quickly to the stores that need it.
"We have a good supply management system that evaluates fairly well the demand and pull from each individual store depending on its size, class, location, seasonality and things like that," Trîpanier explained.
"Weâre not putting fixed numbers for stores; we really assign quantities based on historical pull."
Trîpanier went on to defend Nintendo's decision to launch the Wii just two days after PlayStation 3, stating, "The timing is great as itâs pre-Thanksgiving, which is a very important commercial consideration in the United States, and itâs great for the holidays.
"And the great news is the feedback weâre getting from media and consumers and all of our research is that the Nintendo Wii really is the pretty girl at the party this year."
Trîpanier's comments came at a Wii launch event held at the Ontario Place theme park. Members of the press, public and games industry were all invited to attend, and the response was positive despite long queues to play the most highly anticipated titles (with Ubisoft's Red Steel proving particularly popular).
Trîpanier declined to put a figure on the number of Wii units shipped to Canada, but did say that the territory represents "about ten per cent" of the North American market. Analysts have estimated that as many as 200,000 consoles were available in Canada at launch.
"Canada is more important than its actual market size," Trîpanier said.
"Not only is Canada 10 per cent of North America, which is significant, but the Canadian subsidiary of Nintendo is widely regarded as one of the best subsidiaries in the world on a whole bunch of measures including profit per employee and market share."
The Nintendo Wii will launch in Japan on December 2, six days ahead of the European release.