So I was playing around with my prediction spreadsheet, yes, I am a dork, and I got curious. I knew Nintendo is the only company with any net profits on thier hardware this year, but, given that the Wii is by far the least expensive console, how much are each makers gross profits on hardware?
I threw out some numbers and ....
360. It has three skus priced at 300, 400, and 480. Given that the sales through of the systems is not equal I could not just take the average price and multiply it by the total sold thus far. So I weighed the 400 sku more heavily and came to an assumed average price of $380. Thus 380 * 10m = $3,800,000,000 in gross revenue.
PS3. It has two skus priced at 500 and 600. Same idea that they did not sell equally I estimated an average price at about $585. Thus 585 * 3.42m = $2,000,700,000 in gross revenue.
Wii. It has one sku so the average price was easy. $250. Thus, 250 * 8.17m = $2,042,500,000 in gross revenue.
Obvious difference maker is the total number of sales, but, damn Nintendo is make a lot of money.
What do you think the net profit is?
360, probably has somewhere around a $50 average loss on these first 10m. So what -$500,000,000 net.
PS3, probably has somewhere around a $200 average loss so far...so -$684,000,000 net.
Wii, has about $20 gain average thus far... so $163,400,000 net.
PS3 is a loser in every angle I think, granted could be a little light on average loss of 360.
