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
Evilredzombie
December 2, 2008 at 11:35
What is the loss for ms and sony?
Ace
December 2, 2008 at 11:49
Well its all pure bonus money. Consoles aren’t usually used for making profit. The money is in the software… Nintendo must be raking it in since they are making so much money on both the console and software.
I really dont think that figure is correct tho. Nintendo from the start have said that they are making profit on each console. You can’t tell me that they haven’t reduced the production cost in 2 years though!
BHW
December 2, 2008 at 13:09
Why is it that all Wii promo shots are always taken from what looks like a mental institution