Analyst predicts Nintendo makes $6 for every Wii sold |
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| BY Se Ajala |
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Nintendo has not missed a financial beat this generation. First the DS started things off nicely, then the Wii comes along and adds to the circle of dominating sales. But outside of a couple ‘Nintendo prints money!’ jokes, no one knows exactly how well the company has been doing, until now. Macquarie Securities analyst David Gibson took some of his free time to come up with an unofficial estimate of how much money Nintendo is making for every Wii sold.
Gibson predicts that for every Wii that Nintendo sells, the company makes a $6 profit off of the unit. To put that into perspective take a month of NPD sales on the Wii and multiply that number sold by $6 and you’ll have a clear picture of the profit the company made on the console that month. So in October, when they sold 803,000 Wiis, they theoretically made $4,818,000. Six bucks doesn’t seem like much, but it does seem to add up.
Besides that little prediction, Gibson also took the time to look at the financial states of the PS3 and Xbox 360. He has the latter just about breaking even, while the former loses money everytime a PS3 is sold. No official tally was given on just how much money the PS3 loses when sold, but losing money in any situation is never a good thing for big business.




December 1st, 2008
at 8:59 pm
If Nintendo are making $6 off every Wii, then what is Microsoft losing on each $199 360?
December 2nd, 2008
at 9:19 am
You’d think by this point Nintendo would be making a lot more than 6$ off of each Wii. As Ashutosh psuedo pointed out, the Wii is now more expensive than the 360 arcade is and it has much more powerful hardware under the hood.
December 2nd, 2008
at 12:26 pm
Sony have always said they were/would lose money off each PS3 sold, so I’m guessing it’s part of their business plan. Maybe they expected to sell more though, who knows.
I’d be surprised if Microsoft were breaking even on their machines, specifically the ones cheaper than the Wii as said above, but I’m sure they make a penny or two from Xbox Live.