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Nintendo's Per Console Profit Revealed

By Scott Barkman / Monday, 01 December 2008

Nintendo has said in the past that they managed to change the way console manufacturers look at hardware, by actually making money on every console sold. Just how much, however, was always a mystery. Until now.

 

wii-money

 

Forbes recently posted an article about Nintendo's future, specifically the successes in store for them. They interviewed David Gibson, an analyst at Macquarie Securities, and this is what he had to say about Nintendo's defining point.

"Unlike its competitors, Nintendo has figured out how to make money from its console sales. Sony loses money on each Playstation sold. Microsoft might just break even. But every Wii brings in $6 of operating profit for Nintendo"

Now, $6 may not seem like a lot, but multiply that over roughly twenty-four million consoles sold, and that's a rather large profit that normally wouldn't have been there. (For those of you who don't want to add, its $144,000,000.) With the ability to squeeze that kind of money out of something that is normally sold below cost, it definitely sheds some new light on Nintendo's battle with complacency.

 

So, is this good news? Will Nintendo be able to shrug off complacency and continue to drive the industry with its new found (ok fine, not so new) wealth? Or will Nintendo sit back and ride the gravy train? Comment below.

 

Source: Forbes

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