Nintendo sees limited losses from Wii

Japanese firm hints that gaming console Wii could cost up to 25,000 yen in Japan and $250 in US.

TOKYO: Japanese game console maker Nintendo Corporation has said it was unlikely to lose much money due to the launch of its `Wii' video game console.

The announcement assumes significance as Nintendo's rival Sony has aid it expects a big loss on the debut of its gaming console PlayStation 3. Analysts point out that game machine manufacturers are likely to lose money on first version console sales. The losses are wiped out through sales of software upgrades throughout the life span of the product.

Sony said it was likely to record operating losses of $884 million at its games division in the current fiscal, as it takes into account costs linked to the PlayStation 3 launch.

Nintendo President Satoru Iwata said though he cannot rule out losses, the company was not expecting enormous losses like Sony's projection.

He rebuffed the "strange notion that a game console always leads to mounting initial losses"

Nintendo expects sales target of 6 million Wii consoles in the year till March 2007 and 17 million units of Wii software.

Nintendo also plans to boost monthly production of its DS portable players by 38 per cent. It aims to introduced the thinner, lighter DS Lite version in the US and Europe later this June.

Nitendo will release the Wii in the last quarter of the fiscal 2006.\n\nIt plans to take on rival Sony, which is the leader in the $30 billion global video game market, with smart strategies including pricing.

Nintendo's strategy is aimed at affordable pricing, though rival Microsoft 's Xbox 360 and Sony's PlayStation 3 banks more on high-definition graphics. Nintendo also plans to corner a wide audience, switching over from the mainly young male target group.

Nintendo is expected to announce the exact price and the date of launch of Wii by September. It has indicated that Wii could cost up to 25,000 yen in Japan and $250 in US. PlayStation 3, slated to be in the U.S. market on November 17, will be priced around twice that figure -- $599.

Xbox 360's premium version costs $399. Wii's most attractive feature is its one-handed controller, which resembles a TV remote control.

Nintendo made a mark in the gaming console market with games featuring characters such as Mario, Donkey Kong and Pokemon.

Nitendo will release the Wii in the last quarter of the fiscal 2006.

It plans to take on rival Sony, which is the leader in the $30 billion global video game market, with smart strategies including pricing.

Nintendo's strategy is aimed at affordable pricing, though rival Microsoft 's Xbox 360 and Sony's PlayStation 3 banks more on high-definition graphics.

Nintendo also plans to corner a wide audience, switching over from the mainly young male target group. Nintendo is expected to announce the exact price and the date of launch of Wii by September. It has indicated that Wii could cost up to 25,000 yen in Japan and $250 in US. PlayStation 3, slated to be in the U.S. market on November 17, will be priced around twice that figure -- $599.

Xbox 360's premium version costs $399. Wii's most attractive feature is its one-handed controller, which resembles a TV remote control.

Nintendo made a mark in the gaming console market with games featuring characters such as Mario, Donkey Kong and Pokemon.