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Dante

Nintendo's Profit!

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Nintendo is raking in large amounts of gross profit for every Wii sold, says Nikko Citigroup games analyst Soichiro Fukuda, while components manufacturers are reaping the rewards of the console’s success.

 

According to a Financial Times report, Nintendo is making massive gross profit on its Wii hardware despite only launching the console late last year.

 

Nikko Citigroup games analyst Fukuda estimates that gross profit accumulated for every Wii console sold in Japan equates to 1,500 yen ($13), while in the US and Europe the figure is much higher due to greater retail prices. In the US and Europe, Fukuda estimates gross profit per console stands at 5,600 yen ($49) and 8,500 yen ($74) respectively.

 

Over 9 million Wii units have reportedly been sold, in the process making the Wii the biggest selling next-gen home console on the market, ahead of Microsoft’s Xbox 360 and Sony’s PlayStation.

 

Sony, which invested heavily devloping the PS3’s core Cell chip and Blu-ray technology, is not expected to turn a profit on each PS3 sold until 2009 at the earliest, while Microsoft’s gaming division is hoping to make a profit for the first time in 2008.

 

The Financial Times also reports that companies that produce the Wii’s innards and help in its assembly are witnessing significant related growth.

 

Japanese firm Mitsumi Electric provides the Wii's wireless LAN module and parts for its controllers, conducts Wii assembly operations and supplies components for Nintendo's DS handheld. The firm’s operating profit for the three months ended June 30 rose in excess of 500 percent, while its share price has more than doubled since the Wii’s launch. According to anlysts’ estimates, around 40 percent of its profit is directly related to Nintendo.

Components maker Osaka-based Tabuchi Electric and parts maker Hosidenare are other notable beneficiaries of the Wii’s success.

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This was fairly obvious I guess but it's cool to know that their hardware partners are also largely reaping the rewards. If ATI and IBM also end up with a shitload of profit they'll probably think more strongly of their working relationship with Nintendo and be highly interested in what they can do with them for their next systems.

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You could have bought shares in Nintendo and their component makers and made brazillions.

 

Surely you'd need man and woman from brazil to do that :heh:

 

Or at least own a womens underware factory :heh:

 

Thank you, I'm here till Friday.

 

 

 

 

 

 

I'll get me coat :red:

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Over 9 million Wii units have reportedly been sold, in the process making the Wii the biggest selling next-gen home console on the market, ahead of Microsoft’s Xbox 360 and Sony’s PlayStation.

 

ZOMG PS1 RE-RELEASED ONTO CONSOLE MARKET!

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Surely you'd need man and woman from brazil to do that :heh:

 

ROFL!

 

Nintendo have always followed this traditional business plan of actually turning a profit on the things it sells, but then since videogames are their core (only?) market, it's more important for them to do so than it is for the two other giant behemoths.

 

To think that Microsoft's gaming division still hasn't made a profit after all these years is mind-blowing.

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You could have bought shares in Nintendo and their component makers and made brazillions.

 

I thought that, with a bit of foresight on the stock market Nintendo could've made people millions, well I'm sure it has for some.

 

I'm pleased Nintendo makes such healthy profits, it's ensure's their future and the future of quality titles and franchises.

 

It's funny to think that with the tough times ahead for the PS3, SONY still won;t be in profit until 2009, and may not even be then if they have to endure a price war with Microsoft.

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