Nintendo makes $6 on every Wii

Wii wins out in the profit states, claims latest Forbes report
Wii wins out in the profit states, claims latest Forbes report

Nintendo makes an operating profit of $6 for every Wii console sold, according to the latest analyst reports, with Microsoft breaking even with the Xbox 360 and Sony still making a loss on each PS3 it sells.

The Forbes report's figures are based on an industry analysis by David Gibson at Macquarie Securities.

Gibson also notes that a whopping 60 per cent of Wii games sold are Nintendo's own first party titles, compared to 30 per cent on Microsoft's Xbox 360 and 15 per cent on Sony's PlayStation 3.

"Wii locks in fans because many of its most popular games appear exclusively on the Wii," reports Forbes.

Wii Driving Age

Globally, Wii owners are expected to buy the most games in 2008, a projected 220 million units, compared with 125 million Xbox 360 titles and, still trailing behind in last place.120 million PS3 games, according to Gibson's analysis.

Nintendo also makes a slightly higher gross margin on its games of 65 per cent, compared with between 50 and 60 per cent in Sony and Microsoft's cases.

Interestingly, one post on the Forbes forum notes: "[Nintendo doesn't] seem to come out with software aimed at their unique base, the seniors... Every senior who wants to keep driving should have a driving simulator with their "Wii Driving Age" to keep them sharp. C'mon Nintendo, let's do it!"

Now there's an idea!

Adam Hartley