all the sales charts are for consoles does this mean that console sales are what matter for share holders as opposed to actual game sales? i thought companys made all there money off games and nilch off consoles?
all the sales charts are for consoles does this mean that console sales are what matter for share holders as opposed to actual game sales? i thought companys made all there money off games and nilch off consoles?
A lot of companies use a loss-leading (pricing below cost) strategy to get their console to sell early in the generation. This generation, the loss-leading strategy was adopted by Sony and Microsoft for the first 12-18 months or so. The Xbox 360 is now at the point where Microsoft is making money on every unit sold and Sony may be getting close to that point as well.
Nintendo, on the other hand, priced the Wii above cost at the start, and has been making a profit on every unit sold since launch.
Games are, indeed, the biggest source of profit for these companies, but they aren't necessarily the only source.
Edit: Oh, and there are charts for video game sales on this site, they just aren't displayed as prominently. ;)

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the since wi has sold so many units it should sell tonnes of games and shares should skyrocket
| donkeykong128 said: all the sales charts are for consoles does this mean that console sales are what matter for share holders as opposed to actual game sales? i thought companys made all there money off games and nilch off consoles? |
Consoles are usually sold a below their cost, so that a large number of them are sold. Nintendo, being the exception, that likes to sell their console at a slight premium to costs.
Most of the money is in games. Once the cost of the development of the game is paid for in sales, the profit can get quite large since you are still selling the game at $50+ and its costs are the disc, packaging and the standard overhead. Maybe at most, $10. Probably less.
But the console makers have another large source of income. Royalities from the 3rd party game makers who pay to have their games run on the various consoles. Started by Nintendo back for the NES, a lockout system was devised so that the game had to match a code else it would not play on the NES. To get this lockout code, the 3rd party pays say $7 per copy. Thus an initial run of 300k discs, the 3rd party would pay the console maker $2.1M. This is describe in Wikipedia if you want more info.
Needless to say, handing out lockout codes w/o having to do anything (well, except make the console itself) is very profitable as well.
Torturing the numbers. Hear them scream.
One of the reasons lockout codes exist is ET and similar games that killed the atari. Nintendo was afraid of a glut of terrible games and they enforced some fairly strict rules for who and how a game could be released on their system.
The system of paying to license a game still exists, but I don't know how many terrible game it prevents anymore. Of course, if there was no cost at all to put a game on the Wii (or on any system for that matter) imagine how many more terrible games would be released by companies like Conspiracy and other sixth rate companies.
"But as always, technology refused to be dignity's bitch."--Vance DeGeneres