Nintendo Profit per Console

[Bodhesatva]

NJ5 said:

Bodhesatva said:
The Wii is sold to Toys R Us for 249.98.

:O That one's surprising. I thought there was at least a little margin of profit for the retailers. Is that also the case with the 360 and the PS3?

 Yes. All are sold for precisely one penny in profit for the retailer.

However:

1) We make quite a bit on the gaming accessories

2) The PS2 is sold to us for 114.99, which means we make 11 dollars on each system

Which means it's still profitable for the retailers to have these systems in their stores (to get people to come in and buy the accessories and games) and later on in the lifespan, the system is profitable for the retailers, too. At least, that's been the trend in the past.