I always found it a bit amazing that Sony and Microsoft don't make a profit off of the actual hardware. | |
Yeah really. It helps that they aren't just game companies. | |
I'm surprised they're making that much | |
Nintendo didn't go the route of massive technological upgrades, so the development cost mostly stems around the motion sensing capabilites of the system (and minor upgrades, of course). Since they didn't have to pay off the much bigger development costs for systems like the 360 and PS3, it makes sense that they'd be turning a profit. This is one of the perks of going innovation instead of technical upgrades. | |
"No Shit Sherlock"? | |
Good job Nintendo | |
I still lol at the fact that people scoffed at nintendo saying the wii was a fad, and it's ideas were terrible. Now everyone is copying them and they are making more money than god. Nice work nintendo. P.S F*CK EA AND UBISOFT! the poison of the gaming industry. | |
Maybe EA but UBISOFT has given us the splintercell series, GRAW, POP series, Beyond good and evil, if anything they are one of the better guys out there | |
Honestly, I though the figure would be more along the lines of USD60 profit, given the component breakdown of the Wii (I understand there are other operational costs to take into account but I recall seeing an itemized list of Wii components adding up to around USD175). It does make you wonder though, if Microsoft claims to be making money on each 360 sold, what would their profit margin be? Moreover, what are Sony's operating losses for each PS3? An excel to track this information would be a fascinating study. | |
Hmmm...true, I guess i will give them that, but EA aren't getting let off so easy! and both of the bastards have hopped on the DRM bandwagon so i just don't know what to say any more. It's like they are trying to kill off PC gaming or something >_< | |
I don't think microsoft makes a whole lot on them, at target we have a three dollar profit margin on it(360 pro), so I doubt MS is making too much. | |
Imagine that. A business model based on making profits that doesn't rely on the consumer to purchase additional items after the sale. Genius, really. | |
In the gaming industry, it is. Microsoft and Sony rely on software sold to make back the money lost in hardware sales, as well as development licenses and such. So... the Wii does print money... | |
And if the japanese sales figure on the DSi transfer over to the US, so will it. | |
I can see it now... "The Mint of Nintendo"... | |
At the moment I'm rather jaded by the Wii's lack of titles that appeal to hardcore gamers. But congrats to Nintendo. Just please put more good games on your next console if it ever comes. | |
That explains the no price cut policy | |
As much as I loved Nintendo, I noticed when I was helping my girlfriend pick out Wii games that there is a shocking lack of quality games for the little console. Not owning one myself I never gave much attention to the Wii section of Gamestation, but after suggesting the obvious: Mario, Zelda, SSB:B and Metroid, I could only find shovelware and various WiiSports variations. I know that I'll get flamed, as we all know games like Madworld and Conduit are out there but I cant bring myself to admit that they are quality exclusives worth buying a Wii for. Then again, the pub/restaurant my girlfriend works at is holding a WiiSports/Guitar Hero tournament on New Years, the winner receiving the Wii, Guitar Hero w/guitar and a copy of Wii Sports. So Im going to start training on both games, win the Wii, leaving me enough money for a 360 and then my console collection will be complete. Mwahahaha. | |
I'm not sure why this is in the news section so late. I thought it was common knowledge that Nintendo made a profit on every unit sold. | |
You just reserected a 8 month old thread :( OT: Lets see 50million x 6= 300million. Nice profit now make some good games for once. | |
I actually thought they profited more than this. Huh I guess I was wrong. | |
wow. the wii makes money. next you'll be telling me that bloodrayne the movie was a shit-stain. | |
Yeah I'm pretty sure if the PS3 wasn't owned by Sony they'd be screwed, same goes for the 360. Of course if they weren't owned by those giant companies we might have a better less corner cut product...hmm this requires some thinking. | |
Really though peripherals for the PS3 are expensive. A dual shock pad for £35 is silly. | |
that makes the kicker sony profited off my wii I guess since I had to get a new tv (a sony tv)because my old tv had a screen a bit to small for comfortable playing of it | |
Oh, look, this is ancient news... But to all of you that are surprised that it's so little, consider that loss-leading (selling a games console at a loss, to make back the money on the games) has been a general business strategy in the games industry since the NES days or earlier even. Making a profit on a games console is the exception, not the rule. | |
O.K. let's see some software numbers please. | |
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Nintendo Profits $6 Per Wii Sold
A six dollar operating profit for every console sold may not sound like that much, but it's actually more than Sony and Microsoft are raking in with their gaming systems.
With its Wii console, Nintendo has managed to turn a profit right out of the gates, while Sony takes a loss for every PS3 sold and Microsoft is just about breaking even. Rather than relying more heavily on software sales alone to drive its operating profit like the competition, Nintendo also has the added benefit of bringing in income from its hardware directly, according to industry analyst David Gibson of Macquarie Securities in a recent Forbes feature.
Nintendo has sold approximately 35 million Wii's worldwide, and Gibson believes the company pulls in $6 in operating profit for every console it sells. That alone breaks down to a good chunk of change to the tune of $210 million in operating profits over the two years since the console's launch. Nintendo also produces and sells a much higher percentage of its own games than Sony or Microsoft. Gibson and other analysts are predicting a bright future company - not a tough call to make by any stretch of the imagination.
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