Every Wii sale will be directly profitable for Nintendo.

In a departure from recent hardware release strategies, Nintendo will profit on every sale of the Wii hardware. From NOA President Reggie Fils-Aime:

"We will make a profit on the entire Wii proposition out of the box -- hardware and software. That really is a very different philosophy versus our competitors. We are a company that competes only in the interactive entertainment space so we have to make a profit on every thing we do."

By contrast, recent hardware generations established the trend of selling the hardware at an initial loss that would be later recouped through software sales. Microsoft's XBox 360 and Sony's Playstation 3 both aim to proudly continue this tradition: it is estimated that Microsoft loses over $100 for every "premium pack" 360 they sell whereas Sony may be losing a whopping $300+ for every bleeding-edge PS3.

Where does this leave Nintendo? Firmly in the black; the company looks to continue its recent surge of profitability even through the launch of its new console. One interesting question for North American gamers persists however: are you happy with the Wii pricepoint, or would you have preferred a $199 Wii sans pack-in? Afterall, given the Japanese pricepoint, it is likely Nintendo would have found either configuration profitable...