Why Nintendo won't go 3rd Party

[Arcturus]

TheLastStarFighter said:

 

Hardware Total	Profit per unit	Total
100.95	$49	$4,946,550,000
Total Software	Royalty per unit	Total
913.5	$7	$6,394,500,000
Total income from hardware business:	$11,341,050,000
Nintendo Software	Publisher share	Total
312.84	$27	$8,446,680,000

Note that their are a few assumptions made, first of all that the profit per Wii was/is $49.  It was reported that Nintendo was making $13 in Japan, $49 in the US and $79 in Europe per Wii soon after launch. That may not be totally accurate, but it's a good estimate.  Secondly, prices on both software and hardware get reduced over time... but the relative dollars should be at least somewhat consistant, and costs go down too.

Something to consider: How much of that profit per unit goes to the recovery of hardware R&D costs? How much does Nintendo spend on hardware R&D? That cost would be eliminated if they went third party.

It's not clear in your table, but does the figure for total software (913.5) include first & third party software? If the figure includes first party software, are you doubt counting profit from your line the shows just Nintendo software (312.84)?