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NEWS
Nintendo Nets a Cool $6 Profit for Every Wii Sold
December 2, 2008 | 4:48 AM PST

by: Blake Grundman

We all knew Nintendo was making a profit on the Wii, the question was how much. According to MCVuk.com, Nintendo could be taking home as much as six dollars for every single console sold in North America:
"A report on Forbes reveals each Wii unit brings in an operating profit of $6 for Nintendo, according to David Gibson, an analyst at Macquarie Securities. By comparison, Sony loses money on each PlayStation sold, while Microsoft is currently able to break even.

Nintendo's profits are also aided by the success of the company's first-party titles, with the platform holder's releases accounting for 60 per cent of Wii games sold, significantly higher than Microsoft and Sony's share of 30 per cent and 15 per cent respectively.

The Wii's userbase is also expected to purchase the most games this year, with a projected 220 million units outperforming targets of 120 million PS3 games and 125 million Xbox 360 titles.

Despite selling games at a lower price point and earning less in licensing fees than Microsoft and Sony, Nintendo boasts a higher gross margin on game software than its rivals, with 65 per cent compared against between 50 per cent and 60 per cent." -- MCVuk.com
Though six dollars doesn't seem like a large amount of money, it looks much larger when you consider that the Wii has been consistently selling 600,000 - 800,000 consoles every single month. This is even more amazing when you realize that Sony is still taking a loss on every PS3 sold! With sales of over 220 million projected by Forbes, Nintendo once again has a license to print their own money.

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November 20, 2009
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