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Forums - Sales - Nintendo Profit per Console

hitoriki on 05 September 2007

Seems like Nintendo could drop the price of the Wii even bellow 200 USD without any problem.

A few months back, Microsoft said they where finally making a proffit with every console they sold, so it would be interesting to see how much are they making after the price cut, if any, to see how far the prices could go down in 2008.



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Chemical on 05 September 2007

I am not sure how much money are they making off the wii but there are two things that are certain: 1. They were making profit from the very beginning 2. They are making even more profit now.

Off-topic: All i can say is that if wii falls below 200$ then I am getting a second one(sick and tired of my family playing wii sports when i want to play some metroid).



Proud owner of the following gaming devices:

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johnsobas on 05 September 2007

yea, nintendo will cut the price whenever they have the supply, and need a boost. Not gonna be anytime soon, maybe not even in 08 if things go really well.



currently playing: Skyward Sword, Mario Sunshine, Xenoblade Chronicles X

Astrodust on 05 September 2007

I know this person who use to work at BestBuy and he said they made $20 on each Wii sold. I assume Nintendo doesn't make too much more than that. Surprisingly he also said that they didn't make any money off the 360's and they made I think 100 dollars on each PS3. Or was it less. It's a little foggy now.



 

 

TWRoO on 05 September 2007

^ i thought retailers never made money from the console hardware? [or at least negligable amounts... like said above about toys'r'us.



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TWRoO on 05 September 2007

gahh! double post. why cant we delete posts?



NJ5 on 05 September 2007
Bodhesatva said:
The Wii is sold to Toys R Us for 249.98.

:O That one's surprising. I thought there was at least a little margin of profit for the retailers. Is that also the case with the 360 and the PS3?


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Astrodust on 05 September 2007

Wait I think he said BestBuy made 50 dollars on each PS3. Um still unsure.



 

 

Just_Ben on 05 September 2007
TWRoO said:
^ i thought retailers never made money from the console hardware? [or at least negligable amounts... like said above about toys'r'us.

Well not making money does not mean not making any money. The usualy margin for shops on electronic hardware is 15-35% of the price (Europe). From that margin you have to pay your costs, tax, and the risk of a price reduction. I do believe every console has a margin for shops. But it most likley less than the shop would need to survive. 



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Magera on 05 September 2007
Just_Ben said:
TWRoO said:
^ i thought retailers never made money from the console hardware? [or at least negligable amounts... like said above about toys'r'us.

Well not making money does not mean not making any money. The usualy margin for shops on electronic hardware is 15-35% of the price (Europe). From that margin you have to pay your costs, tax, and the risk of a price reduction. I do believe every console has a margin for shops. But it most likley less than the shop would need to survive.


 I'm not sure I get you? Risk of a price reduction?

If Sony Sell a unit for $600 then drop the RRP to $500 any retailer that has Excess unsold stock at the $600 value gets re-imburst the $100 drop, as it is a forced loss. If the retailer do a special and sell for less, then Sony has nothing to do with it.



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