"Japanese game software and console maker Nintendo Co. (7974.OS) said on Wednesday it is unlikely to lose much money on the launch of its new “Wii” video game console, in sharp contrast to rival Sony Corp. (6758.T), which expects a hefty loss on the debut of its PlayStation 3.
Game machines manufacturers often lose money on initial console sales, but recoup those losses over the life of the product through software sales. Sony expects to post a 100 billion yen ($884 million) operating loss at its game division in the current fiscal year due to costs related to the PS3 launch.
“We can’t promise we won’t have even a one-yen loss, but we are not expecting an enormous loss,” Nintendo President Satoru Iwata told a news conference. “It is a strange notion that a game console always leads to mounting losses in the beginning.”"