The July 11 issue of Fortune magazine will feature in in-depth look at the success of Nintendo and how it has been able to “beat the pants off” fellow industry heavyweights Sony and Microsoft.
Thanks to a combination of innovative strategies and intelligent cost-cutting, Nintendo is able to produce a profit from every Wii console it sells. Sony and Microsoft, on the other hand, are selling their much more expensive systems at a loss, in money-bleeding attempts to gain increased market share.
Over its previous fiscal year which ended March 31, Nintendo raised its sales forecast four times, ultimately generating over $8.2 billion for the year. Nintendo executives also said they expected net profits for the same period to surpass expectations, which they had pegged at just over $1 billion. Sony, meanwhile, faced significant reductions in profit over the same period, due largely to the start-up costs of the Playstation 3, while the Xbox 360 has been a consistent money-loser for Microsoft.
