A six dollar operating profit for every console sold may not sound like that much, but it’s actually more than Sony and Microsoft are raking in with their gaming systems.
With its Wii console, Nintendo has managed to turn a profit right out of the gates, while Sony takes a loss for every PS3 sold and Microsoft is just about breaking even. Rather than relying more heavily on software sales alone to drive its operating profit like the competition, Nintendo also has the added benefit of bringing in income from its hardware directly, according to industry analyst David Gibson of Macquarie Securities in a recent Forbes feature.
Nintendo has sold approximately 35 million Wii’s worldwide, and Gibson believes the company pulls in $6 in operating profit for every console it sells. That alone breaks down to a good chunk of change to the tune of $210 million in operating profits over the two years since the console’s launch. Nintendo also produces and sells a much higher percentage of its own games than Sony or Microsoft. Gibson and other analysts are predicting a bright future company – not a tough call to make by any stretch of the imagination.
