What if X360 sold as much as Wii next year?

Both MSFT and Nintendo have the same fiscal years.

Operating income will be used to compare the same numbers for MSFT EDD division.

FY End Mar 2009

Let's break it down:

Nintendo - projects to sell 25 million Wiis

Revenue = 18 Billion

Operating Income = 5.3 Billion

Based on previous analysis:

X360 - sells 25 million units

XBox Platform (not including PC games)

Revenue: $16.2 Billion

Gross Margin: $6.13 Billion

Operating Income: $3.18 Billion

(taking into account proportional marketing, r&d and other expenses)

continued...

SUMMARY:

Given the projected results, MSFT selling 25 million XBox 360s will basically be 50% - 75% bigger than Nintendo - if you strip out the DS.

Handhelds account for about 50% (give or take a few points less) of Nintendo's revenue and profits.

CONCLUSION:
While Nintendo is VERY PROFITABLE, it is a function of sales volumes that make them very much so (duh....)

For the same sales volumes, the XBox Platform MAY be slightly more profitable than the Wii.
This makes some sense, because the software attach rate for the X360 is a bit higher, as well as XBox Live generating revenues and profits for subscriptions and downloads.

Enjoy and discuss....

Only problem is that the Xbox 360 does not sell as much as Wii/DS, so it will never be as profitable.

that's why its a what if..

next up... what if ps3 and psp......

What if.. not.
Will never happen.

Erm... MS fiscal year runs July-June. Nintendo uses April-March

Actually MS and Nintendo don't have the same fiscal year. MS's FY ends at the end of June while Nintendo's end at the end of March.

However still quite interesting.

The only reason the attach rate is higher for the 360 is because its been out for a year longer.

And how the hell is the 360 going to sell 25 million in one year when it hasn't sold 20 million in 2.5 years?

Not to mention that the 360 is still a net loss in profits after selling 20 million units + software sales over its lifetime.

ooops.
Yes, msft fy is end jun not mar

I was thinking of Sony....

Wow calm down people, the only thing he did is to try to find out which company, Nintendo or Microsoft, got the most profitable platform by unit of HW. No need to start foaming at the mouth.