| DMeisterJ said: How did Nintendo collect a profit on the Gamecube. The price dropped to a hundred dollars very quickly and there were reports in Gamepro that The christmas that the gamecube dropped to $99, the Company lost 26.7 Million dollars so is that a profit? |
Everybody in the gaming industry lost money in 2001 following the terrorist attack of 9/11 -- Nintendo's revenues 'only' hit $3.7B. However, its rock-bottom worst without that influence was actually 2003, when Nintendo's net sales were $4.2B with a net income reported of $561M (down from $802M the year before). This time period of 2003 is when the Gamecube prices were slashed and Nintendo took the budget-minded GC to China, which sounds like the era to which you're referring.
So, Nintendo's WORST year (2003) in the last decade still resulted in a $561M net income.
For the sake of comparison, EA's (the #2 publisher behind Nintendo) BEST year (2004) for this same time period resulted in a net income of $577M.
Nintendo has been successful in the video game industry for about 35 years now because they're just not in the business of losing money. It's that simple.
