Nintendo in profit on each Wii sold
Its rivals aren't
Every Wii nets Nintendo $6, but the PlayStation 3 and Xbox 360 don’t produce any profit for Sony and Microsoft, a market analyst has claimed.
David Gibson from Macquarie Securities said in a Forbes magazine report that – unlike its competitors – Nintendo has “figured out how to make money from its console sales”.
That's console hardware sales - console makers generally do very nicely, thank you, out of the software.
The Japanese games giant is quids on the hardware, Gibson claimed, because it buys in inexpensive components instead of making them in-house.
If Gibson’s estimate is correct, then Nintendo has made a massive $210m (£141m/€166m) from Wii sales so far, given that the firm recently announced global sales in the region of 35m units.
Microsoft has only broken even on its 25m or so Xbox 360 shipments, while Sony’s actually lost money despite selling about 17m PS3s, the report added.
The reason Nintendo wins:
Software. Plain and simple. Nintendo is as strict with its licensing as Apple (but gets no flack??). When Nintendo had gotten so strict that they were throttling developers, in swooped Sony with the PS1 and insanely lax game vetting, and had a MAJOR success. Now Ninty's putting as much effort into its releases as it did in the late eighties/early-nineties, it's back on top. Sony/MS are now fumbling with emerging technologies (HD, WebContent, MotionControl), while Nintendo have stuck to their guns (pretty much) and just sells fun.
Xboxes breaking even? Not at £129 they're not, although that still seems a lot for a door-stop.