Mon, Dec 01, 2008 | 19:59 GMT
Nintendo makes $6 from every Wii sold
According to this Forbes report, Macquarie Securities analyst David Gibson reckons Nintendo makes a grand total of $6 from every Wii unit sold.
Nintendo profits are aided by its strong first party software sales, the analyst added: Nintendo titles are reported as having a 60 percent attach rate.
Comparatively, the report states that Sony loses money on each PS3, and Microsoft is able to break even on 360.
Read all about it through the link.
Thanks, MCV.
By Mike Bowden
8 comments
#1
Psychotext
01/12/08, 7:52 pm
Only $6 on the Wii but MS can break even… that doesn’t sound right at all.
#2
wz
01/12/08, 8:30 pm
Nintendo isn’t exactly selling few of them, so I guess they are happy.
#3
Psychotext
01/12/08, 8:35 pm
That wasn’t really what I was getting at. There’s no way they’re only making $6 on each one… when you consider the actual hardware costs of the 360 vs the Wii and take into account the massive economies of scale Nintendo have with the Wii.
Well, not if MS are breaking even anyway.
#4
JPickford
01/12/08, 9:23 pm
Sounds like bollocks. They must be making ten times that by now.
#5
ecu
01/12/08, 9:33 pm
Weren’t Nintendo making a profit on the GC, years ago? Unless the controllers cost a fortune to make, they must be making way more than $6 on each unit. The numbers don’t add up.
#6
onyxbox
01/12/08, 9:39 pm
“Only $6 on the Wii but MS can break even… that doesn’t sound right at all.”
MS skip proper motherboard design, quality control, build quality and use the cheapest parts on the market for everything but the controller…
That IMO is how they break even.
#7
ecu
01/12/08, 10:07 pm
“Microsoft is able to break every 360.”
That’s better.
#8
Psychotext
01/12/08, 10:37 pm
Even with all of that ony, it still wouldn’t be as cheap as the Wii to manufacture.