Nintendo making six bucks on every Wii sold

by Chris Greenhough { Dec 1st 2008 at 3:38PM }

Macquarie Securities analyst David Gibson has used Science to calculate that Nintendo makes $6 from every Wii console snapped up by the public. It's long been known that Nintendo profits from its hardware, though how much has never been revealed.

If Gibson's sums are accurate, that means Nintendo made almost $4.2 million of profit from North American Wii hardware during October alone. Six dollars, for the record, is what we almost earn in a whole day of blogging. That kind of money will get you one-fifth of this amazing Wii Music add-on set!

Gibson also states that Microsoft breaks even with the Xbox 360, while Sony loses cash whenever it sells a PS3. Sadly, he doesn't say how much Sony drops, so we can't point and laugh.

[Via MCV]

Tags: business, forbes, money, profit, SCIENCE

Reader Comments (Page 1 of 1)

Gun Barrier @ Dec 1st 2008 3:44PM

Wow, so MS doesn't lose money on every 360 sold?! Somehow I thought that Ninty was making more per wii.

Jesse @ Dec 1st 2008 3:51PM

As did I. While 4-5 million dollars a month is a lot, I figured they were making more than that just from their consoles.

Than again, they keep licensing garbage software which sells like hotcakes because it features 30 crappy mini-games, and it's much easier programming a bunch of simple games rather than making a complicated game engine where the game is played for more than 15 minutes and left to collect dust when their ADD children get bored.

Edge @ Dec 1st 2008 3:54PM

I'm actually surprised Microsoft isn't MAKING money on each sale, since we have long speculated to the contrary. Of course, they still have a billion in warranty costs to stomach.

But that doesn't sound like the whole story for MS, what with the overpriced hard drives. I guess we take it to mean that they break even on the core hardware. So, therefore, the $200 Arcade package DOES cost less to produce than the $250 Wii. That CAN'T be right.... can it?

Fulluphigh @ Dec 1st 2008 4:56PM

I think Edge just broke everything this David Gibson fellow claimed. There isn't even anything else to say.

Game. Set. Match.

(01) @ Dec 1st 2008 6:46PM

Remember, that's for Oct ALONE, meaning that they've profitied at least $50/60 Million since the Wii came out. With consoles generally selling at a loss, and the inevitable amount of money being made in software sales makes me wish I could invent a machine that prints money.

invaderalex @ Dec 1st 2008 10:47PM

Dude i have ADD, that hurts...
I play chess, zelda and advance wars.
I hate when people think that only minigames would ever amuse us and can;t comprehend deep game or some shit.
Really i hate when people use ADD to describe things.

Roto13 @ Dec 1st 2008 11:26PM

There there.

*holds up a blinking light*

commathe @ Dec 1st 2008 4:40PM

Buying a ps3 doesnt deduct money from sony's coffers. Theyve already spent money on making the consoles, and buying one simply gives them back some of what they spent. They don't make back all of what they spent on it, but if you dont buy it, they dont make any of it back.

So the next time your stupid friend points at a guy purchasing a ps3 at a store and shouts gleefully "zomg sony just lost munny!" just smile and nod, and then hand him his medication.

Fulluphigh @ Dec 1st 2008 4:56PM

No, but Sony comes out with a net loss of money for every PS3 produced. If it winds up not being sold, it's just an even greater loss.

Of course, that's what controllers and software are for. And blu-rays.

erico316 @ Dec 1st 2008 5:01PM

sony had always made their money back each gen by making games.yes you can laugh a a ps3 owner but they can laugh at wii owner for the worst holiday line up in history.This is the saddest holiday line i have ever seen for any system so laugh at ps3 owner they they have the right to laugh and say no new game for you. There always an up side and down side to everything.

CJLopez @ Dec 1st 2008 5:23PM

So i laugh to myself, cuz i'm a Wiiowner and a Ps3 Owner

Mr Khan @ Dec 1st 2008 5:01PM

Wow, really?

Huh, i assumed they raked in somewhere in the ballpark of $15 per Wii, and that was from launch, that they had added at least $5 on to that by now

Seriously, though. How much can all that stuff actually cost if Microsoft is breaking even on something so much stronger that sells for $50 less, even bare-bones as the arcade is?