bbsin said:
Wrong way around. Nintendo makes most their money off of hardware, that's why they've never had a negative operating income. They (nintendo) gets roughly a $49 profit for every Wii they've sold and even more for DS. MS and Sony makes money based on the percentage of royalties and licensing generated from software companies and sales. Sony can emulate Nintedo's business model, but don't want to. They could have easily created a PS2.5 for $200 and sold MORE than the Wii at this point. As for Microsoft, their name in the videogame industry wasn't good enough after the Xbox so they had to push the technology and make a better reputation for themselves. |
Been paying attention to the weekly sales? Notice how Nintendo has been publishing more units of software than any other publisher for months now? There's a reason why some third party software publishers like to whine about how Nintendo consoles are only good for Nintendo.
And when a $50 game is sold and you get the licensing cut, the publisher's cut, and the developer's cut, that's a heckuva lotta dough.
It's obviously great for Nintendo that they make profit off their hardware sales, too, but they make way more cash off the copy of Metroid, SMG, Mario Party and Wii Play that a dude buys with his Wii than they do off the Wii itself.
"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event." — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.