jarrod said:
At $99, Nintendo would likely still be profiting (or at worst breaking even) on Wii. It's basically just an upclocked GameCube (which they were profiting off @$99 5 years ago) with a flash drive and wifi chip. The reason Nintendo didn't drop the price until this year is because they were selling out their stock basically as soon as it hit shelves. They've been making insane margins on the hardware all along. |
Their margins aren't that high, it doesn't take rocket science maths to see that.
You're suggesting the Wii is profitable at 99$ means Nintendo would have made 150$ or so per Wii sold last financial year.
They sold 26 millions units.
That's 3.9 billion$ profit...
Nintendo made 2.8 billion$ net profit that year and that included DS profit, DS software and Wii software and those last 3 are far from being negligible.....