Nintendo profits $6 on every Wii Sold

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What is exactly going on with Nintendo economic status in this crisis?

Nintendo declares to be in a recession-proof environment by still having stronger sales and by now it has sold over 35 million copies.

Why is Nintendo having more success than their competitors while having a less powerful processor?

A really interesting aspect is how many hardcore Nintendo gamers have been angry against Nintendo for not delivering them what they want and switch to their competitors but why is Nintendo targeting casual gamers and not caring much about graphics?

According to Anita Frazier, toy and video game analyst:

“More casual players aren’t as likely to be attracted by hardware features, so it’s all about delivering a fun, easy-to-use and addicting game experience”

Also, for having the most sales another factor is the price, according to Hiroshi Kamide, director of research at KBC Securities Japan:

“The key thing about Nintendo is they want their things to be at price points that anyone can respond to.”

It’s easier buying a $250 console rather than a $400 console, that’s why Microsoft Xbox 360 later tried to compete with Nintendo by lowering the price of the Arcade System for $200.

Also, Nintendo makes 60% of their games,  Microsoft 30% and Sony 15%, making the profits of Nintendo even higher for selling games.

Top Selling Games:

• Wii Play
• Super Smash Bros Brawl
• Super Mario Galaxy

All these games are Nintendo owned while the top 3 selling games of PS3:

• Grand Theft Auto IV
• Call of Duty 4: Modern Warfare
• Assassin’s Creed

These games are all from developers not working in Sony.

How much profit does Nintendo make per console?

What makes Nintendo and other console developers profit the most are the games sales rather than console sales, PS3 loses money on each unit sold,  XBOX 360 makes little to no profit and Nintendo makes $6 per unit sold.

From 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.”

Source: Forbes

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