Arcturus said:
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.
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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)?
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Resumably R&D of harware costs money, but so does game developement. We don't know numbers, but we do know they have much more staff in the game design area than the hardware area, so that factor would probably make the hardware side even more important...probably getting up to the 65% of their business that Nintendo says.
The total software includes the Nintendo software. The line from the Nintendo software does NOT include the the royalty portion, only the "publisher" portion. In other words, Nintendo makes extra money off of their 1st party software, but only because they are a hardware platform holder so that money is on the hardware side of revenues.
