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Analyst: Nintendo Making $74 Per Euro Wii Sold

Nintendo is raking in large amounts of gross profit for every Wii sold, says Nikko Citigroup games analyst Soichiro Fukuda, while components manufacturers are reaping the rewards of the console's success. Sony, which invested heavily devloping the PS3's core Cell chip and Blu-ray technology, is not expected to turn a profit on each PS3 sold until 2009 at the earliest, while Microsoft's gaming division is hoping to make a profit for the first time in 2008.

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next-gen.biz
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BloodySinner3411d ago

They're making profit on an overpriced GameCube. Big surprise there. :-/

Kholinar3411d ago

Yeah! I know. :(

What's really crazy is how they're selling the old gamecube at a loss. O_O

Better buy one now, I figure they're losing $75 per old GC. So they're just barely making their money back on the Wii.

/sarcasm

If you can be ridiculous, so can I.

Kenshin_BATT0USAI3411d ago

You can expect them to make profit on a cheap product with even cheaper production costs. I thought we all knew that already?

crck3411d ago

and actually gave their customers a system capable of HD! Yeah I know ridiculous...

fjtorres3411d ago

...or as easy to do as just that.
An extra $25 won't cut it at all.
To do HD the Wii would have to triple the resolution (300K pixels at SD vs 1M pixels at 720P), which requires at a minimum a bigger memory buffer, more CPU power, more GPU power, higher internal bandwidths, plus a scaler chip (we've all seen what a lack of that did to Sony) and assorted enhancements.
What this report is telling us is that there is about US$200 worth of parts and services in a Wii; compared to $279-299 for a Core 360 minus HDD (assuming MS has cost-reduced the core a bit from last December's reported build cost of $320). And that is for a 360 minus the Wii-mote sensors and built-in wireless. Which means that adding HD to wii would likely increase the build-cost by 50%.
Suddenly, that $249 SD Wii becomes a $399 HD Wii, or about what XBOX sells for, *with* a 20GB HDD.
And at that price point, Nintendo would be trading off the Wii-mote VS the 360's HDD, digital media capabilities, and online gaming prowess.
Easy to see why Nintendo chose to stay in the SD arena for now.
An HD-wii will show up soon enough) but not until Nintendo can make $50 up-front profit per unit *and* stay in a $200-250 Price range.
Figure 2009-2010 at the earliest.

Vojkan3411d ago

Nintedo is even more greedier than Microsoft. I want to puke when i read this stuff.

Rooftrellen3411d ago

Yeah, we all know, every company that makes profits is greedy.

The only good companies are the ones that lose money. Seems like they never stick around for long, though. I wonder why...

Rama262853411d ago

So it takes Nintendo less than a year to start making a big profit when it takes Microsoft and Sony 3 years to start making a profit. I wonder how these companies cope? I can only assume Microsoft have the money available to not worry, whereas Sony have the PS2 still going strong.

Shankle3410d ago

You've completely missed the point here. The companies (esp. Sony and Microsoft) are gonna make by far the majority of their money from software sales. Seeing as Nintendo are barely selling any games at all at the moment, it looks like their being carried by their overpriced console.

ItsDubC3410d ago (Edited 3410d ago )

Actually Shankle, the latest NPD data clearly shows that the Wii is indeed selling games. Four out of the top ten best-selling games in August were Wii titles, making it the console w/ the most top ten best-selling games for the month.

http://www.n4g.com/industry...

However overpriced you feel the Wii is, it clearly has games that ppl want and buy.

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