Wii makes Nintendo $6 per unit

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It has long been said that Nintendo were making a profit on each console sold but until now we didn’t really have an amount to go with that sentiment.

I personally thought that Nintendo were getting about $50 per console but that wasn’t taking into consideration operating and distribution costs, now David Gibson of Macquarie Securities has put all the figures through his magical calculator and come up with an answer of $6.

That’s pure profit per console which means that Nintendo has banked $210 000 000 in pure profit from hardware sales alone plus an undisclosed amount from their huge software sales.

Nintendo apparently make 65% gross profit on each Wii game sold which is surprisingly high seeing that Sony and Microsoft take between 50% and 60%.

Now to be honest I am surprised that Nintendo are making such a small profit as it shows that they don’t really have any space to move with their price tag, though it isn’t like that has proven to be a problem.

Source: Forbes.com

Last Updated: December 2, 2008

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