| Pemalite said: If it was profitable for Nintendo, then it wasn't a failure. |
Nintendo was profitable, the GameCube was not.
Nintendo profited despite the GameCube. They had a booming handheld business, stock sale income, and favourable exchange rates. The offset was enough to cover the losses of the home console division and turn a profit. Granted, this period saw Nintendo's lowest profits in the last 34 years, outside of the Wii U era.
The GameCube was only responsible for about 1/5th of Nintendo's total revenue during the era, despite home consoles being the primary focus of internal operations. GameCube's actual revenue from the sale of all hardware and software is not much higher than the cost to run Nintendo. I'd also guess Nintendo's handheld division turned larger margins on manufacturing and sales-related cost vs sales revenue given the retail prices were comparable. Gamecube's profits were nowhere near enough to cover the costs related to it and therefore was a loss.
Gamecube, as a result, cut heavily into Nintendo's profits generated from other/corporate income and handhelds.
Last edited by Jumpin - on 08 October 2020I describe myself as a little dose of toxic masculinity.
