Analyst says Wii profits highest in Europe and U.S.
by David Hinkle 
{ Sep 17th 2007 at 2:15PM }
According to Nikko Citigroup games analyst Fukuda, the company isn't making that much money on each Wii sold in Japan. In the region, Nintendo only makes 1,500 Yen (or $13 US) on each console sold. This is crushed by profits made in other regions.
In the United States, Nintendo makes 5,600 yen ($49) in profit. In Europe, Nintendo makes 8,500 yen ($74) profit. When compared to its competitors (who have yet to see profit on a single console sold), it's no wonder that Nintendo is back on top.
Reader Comments (Page 1 of 1)
mian @ Sep 17th 2007 2:36PM
So they're subsidizing Japanese sales with Dollars and Euros? That's great news if you're Japanese I guess.
How about they take some of that cash they're rolling in and make some investments in 3rd party (quasi-2nd party) hardcore development to round out our razor thin and often substandard offerings in areas like FPS? Or how about competing with xbox Live! They've got the resources.
Blu-Sam @ Sep 17th 2007 2:41PM
don't you think they should use currency in Yen instead US money?
SpinachConvention @ Sep 17th 2007 2:45PM
Ahhh, nice to see my comments about the way things are more expensive in Europe is backed up by people with more knowledge than me!
@1 mian: I completely agree!
DownwardMonkey @ Sep 17th 2007 3:03PM
Being on top is one thing, staying there is another. The Wii owes a lot of its success to casual gamers/non-gamers and while Microsoft can be sure that a good number of its gamers will move on to the next XBox if they get it right in say 4 years can Nintendo say the same for the casual and non-gamers? Microsoft and Sony are both in this for the long game and have the money to stay in it for the long fight.
I LOVE my Wii, but personally I couldn't own one without owning my PS3 along with it. It's not a Wii bash, just a personal view point.
The fact is that the game changed when MS and Sony entered it, the Wii sales profits are tiny next to the sales that MS and Sony make everyday on other products.
Still, as long as Nintendo make consoles and games I'll probably be buying them. Starting up the Wii was like being a child again on the first day I turned on my SNES.
AlanS17 @ Sep 17th 2007 3:17PM
Everyday I think the pool of good games will start to dry up, but it seems to keep going. Nintendo can't bare the load indefinitely, but this console can see a couple more good years if 3rd party titles join the fray. I'm liking my Wii more now than when I got it last Christmas.
As it stands today, I don't think the Wii is just for casual gamers, but I'm afraid it'll go too far down that road, and won't be able to come back. The Wii is the only next-gen console I own, but I'm leaning towards getting a PS3 down the road.
I'm just trying to ride the Wii wave long enough so that the PS3 can come down to a more affordable price. I don't feel like I'm missing anything there yet, but next year will see some really great games.
To actually add something to the topic... Even with $50 profit on each unit sold, they're still way cheaper than any other current-gen console out there. So I don't mind that they're making a profit off of me.
And for my predictions on future market share... The Wii will maintain the top slot until HDTV's are in more than 50% of American households. Then people will realize what they're missing. The Wii will have a shorter life than any other console currently out.
idioteraser @ Sep 17th 2007 3:23PM
Uh they are using the money to encourage game development. They bought monolith soft for starters. Wiiware is coming. Loads of vc games and formats. All of that takes money. They are also expanding their game development teams. All of that takes time and money. 99% of it is behind the scenes so you don't realize they are expanding.
Ihar `Philips` Filipau @ Sep 17th 2007 3:24PM
Can't tell for US. But over here in Europe, Nintendo ware costs pretty much. Wii goes for 250€. DS goes for 140€. They cost same everywhere - no price competition in sight. All Wii games cost 55-60€. Yes, that's right: there are no cheap Wii games in Europe. Even that half-arsed half-finished bogus crap RE4:Wii costs here 60€.
So I guess, by ripping off europeans - as if we didn't get used to it - they can boost their Jap sales. Right. And now it's "official".
ssuk @ Sep 17th 2007 3:25PM
You guys pay these to say common sense? I want an analyst job.
Seriously, when you guys are paying $250 for a Wii while Europe sells a Wii for $360 (£180) how is this a surprise? Plus, with the ammount of profit which Nintendo is making off the Wii, you'd think they'd want to cut the price, especially since the 360 Core unit has recently dropped it's price to rival the Wii's £180 price tag at... £180. I suppose, though £180 is a nice price point.
idioteraser @ Sep 17th 2007 6:41PM
"Moron said: Even that half-arsed half-finished bogus crap RE4:Wii costs here 60€."
Looks someone hasn't played it all.
DownwardMonkey @ Sep 17th 2007 7:34PM
@6 I'm not sure what your point is, it doesn't matter how much money the Wii makes they will never have the backing that Microsoft has. They can expand all they want, they will never be as big as Microsoft. Nintendo IS fighting a losing battle, I think acceptance of that by Nintendo themselves is what lead to the Wii being such a hit that it's been. The problem is can they keep the casual/non gamers interested in their next console and keep the ball rolling? I frankly hope so.