Nintendo makes an adorable profit per Wii sold

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Everything about the Nintendo Wii is just so goshdarn cute. Even it's profit! From an article in Forbes:

Unlike its competitors, Nintendo has figured out how to make money from its console sales. Sony loses money on each Playstation sold. Microsoft might just break even. But every Wii brings in $6 of operating profit for Nintendo, says David Gibson, an analyst at Macquarie Securities.

Six dollars is really cute. I would be hard pressed to think of a profit cuter than six dollars. Maybe seventeen cents.

Thanks Joystiq!

By Tom Chick

12:05 PM ON 12/02/08
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PeterD, the Forbes article actually

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Comments

By BobJustBob at 1:46 PM ON 12/02/08

Are analysts the most useless professionals out there? My analysis says yes.

By PeterD at 3:13 PM ON 12/02/08

Profit is profit. Common wisdom has been that console manufacturers make all their profit off the games, not the hardware. Joe average non-gamer who buys a console and one game, then loses interest could actually cause Sony or MS (with the original Xbox) to lose money. The fact that Nintendo had the lowest priced console and could still turn a profit on the hardware is impressive, and bodes well for the overall profitability of the system -- even if people only buy the Wii and nothing else, Nintendo still makes money.

By baxterpunch at 3:15 PM ON 12/02/08

$6.00 X 40,000,000 consoles sold = Almost a quarter billion dollars.

By Tom Chick at 5:45 PM ON 12/02/08

PeterD, the Forbes article actually makes a very good point about Nintendo losing money because the best-selling games on the Wii are all first-party titles, created by Nintendo themselves. This means they're not making the hefty licensing fees the other systems enjoy from third-party developers.

Nintendo is still wildly successful with the Wii, but it's a twist worth considering.