Quantcast
Nintendo's profit per Wii sold: $6 - Destructoid

DestructoidJapanatorTomopopFlixist



Nintendo's profit per Wii sold: $6


4:23 PM on 12.01.2008
Nintendo's profit per Wii sold: $6 photo



Back when Nintendo's Wii launched, we heard a lot of talk about how the Wii hardware was actually profitable. That's something that the other guys couldn't say. From all of the bragging, I always figured that there were making more than $6. I guess that's still a pretty good figure, though. My dad always said that if you managed to pay all of your bills and still have money left over, you're doing pretty well for yourself, regardless of how much you have left. In other words, $6 is better than nothing.

This Forbes article says that Nintendo's strategy is to buy inexpensive components rather than make them in-house. This has them actually making money on console sales, unlike Sony. David Gibson, an analyst at Macquarie Securities, says that Nintendo earns $6 of operating profit with each sale.

Add on top of that that Nintendo also sells 60% of Wii games itself, compared with 30% for Microsoft and 15% for Sony, and that Nintendo has a higher gross margin on game software than the others at 65%, compared with between 50% and 60%, and it becomes clear that Nintendo is making cash. 






Comments not appearing? Anti-virus apps like Avast or some browser extensions can cause this.
Easy fix: Add   [*].disqus.com   to your software's white list. Tada! Happy comments time again.

Did you know? You can now get daily or weekly email notifications when humans reply to your comments.








Win your choice of console from Destructoid! in Destructoid's Hangs on LockerDome

Money

3:15 PM on 07.16.2014
Vivendi considered firing Activision's Bobby Kotick over last year's buyout

Last year, Activision Blizzard orchestrated a buyout of then-parent company Vivendi to separate from Vivendi and become an independent company. I wrote this great headline about the split --Active-fission -- and stared w...more



1:15 PM on 07.16.2014
Kim Kardashian: Hollywood will make about $200 million this year

Kim Kardashian: Hollywood, the Glu Mobile game based on their previous Stardom Hollywood and rebranded with noted famous person Kim Kardashian West, is set to make $200 million in revenue by the end of this year. As an a...more



3:45 PM on 07.10.2014
Watch Dogs underscored a record first quarter for Ubisoft

Ubisoft set lofty predictions for its 2014 fiscal year first-quarter performance, and then it blew right by them. Estimating €310 million (approximately $422 million) in sales, the publisher reported first-quarter s...more



View all Money






Back to Top




All content is yours to recycle through our Creative Commons License permitting non-commercial sharing requiring attribution. Our communities are obsessed with videoGames, movies, anime, and toys.

Living the dream since March 16, 2006

Advertising on destructoid is available: Please contact them to learn more