We should consider R&D for a purely console maker will mostly occur in the 2-3 years before a console is released (They will be researching and such for Wii/DS successor now, but they won't need to spend money on it until they are "in the thick of it".

Microsoft first of all released the X360 a year before Wii, so they would naturally be further along anyway... but also they will have big R&D costs constantly because of it being the EDD including other areas of entertainment.

unfortunately, that's how the world works.

it is what it is.

Absolutely. Well ya keep threads like this up and I'll make sure to keep giving them posts and thoughts. As for me I'll keep up the sales predictions haha as that's why I'm here. That and to analyze the industry which is all very interesting.

@Zucas

Exactly. If you guys are fairly accurate in predictions, then you can use the financial model to determine profits and losses...

much like what wall street analysts do.

if you have better predictions, then your predicted numbers will also be better.

If you have a track record, then vgchartz will continue to be known, not just for the sales numbers, but also financial results as well.

keep up the good work!

VGChartz should make a section for predictions and forecasts.
Then if you have both shipments, profit/loss predictions then you can have a record of it.

Maybe starting next quarter....

Then you can go back and tweak the models, etc.. as you go along.
Eventually, the predictions should be fairly accurate, much like the sales data.

R&D ( end 31 march year )

2001 - 17 B yen -125 US$ million 

2002 - 17 B yen -126 US$ million 

2003 - 14.6 B yen - 121 US$ million

2004 - 15.8 B yen -150 US$ million 

2005 - 20.5 B yen -191.7 US$ million 

2006 - 30.6 B yen -261.5 US$ million 

2007 - 37.7 B yen -319.7 US$ million 

2008 - 37 B yen -370 US$ million 

That makes perfect sense: Now that Nintendo is in the lead, they have the money to burn and the desire to stay in this position for the foreseeable future.

Now, my question: Do you know where development costs for new games goes? I assume in R&D, but many in this thread seem to think R&D is only for technology.

Nintendo R&D is known to be frugal ( exist this word ? I mean relative low budget ).

Nintendo philosophy is based on Yokoi's "Lateral thinking of withered technoogy".

http://en.wikipedia.org/wiki/Gunpei_Yokoi

wow thats lot of money

Great article. One thing though.

I believe they make more on Wii hardware.

I think I read they make 71 Euros pr Wii sold in Europe.

It makes a lot less in America (50 dollars?), but as the earn is so much higher in Europe (and Japan, I assume as prices are high there).

It isn't a lot higher, but I reckon it could be 70 dollars as an average.

I may be wrong though.