By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Sales - Nintendo Profit per Console

GranTurismo on 05 September 2007

PLus Nintendo must make lots of money in other places in the world, the system costs $250 in the US, while it costs 280-290 dollars in Canada with are money being pretty much the same now thats alot of money. Then you got Europeans and the aussies which get screwed out the ass by Nintendo.



Around the Network
HappySqurriel on 05 September 2007

Most of the time manufacturing cost estimates are for the console alone without controllers, cables or pack-ins ...

As a guess I would say that the total cost to manufacture the Wii (without Wii Sports) and to ship it to North America was probably slightly higher than $200 so they decided to include Wii Sports and sell the system for $250. Wii Sports has easily covered its development costs and the Wii is probably less expensive to manufacture now so they could probably sell it for $200 if they wanted to; personally, I expect Nintendo to pack-in Wii Fit with the system and maintain the price until E3 or TGS in 2008 (When it will become Wii + Wii Sports + Wii Fit for $200)



NJ5 on 05 September 2007

Even if Nintendo cares about the development costs for Wii Sports, they probably have been covered by Wii Sports sales in Japan.

I don't think they care though, because Wii Sports may well be one of the things which is responsible for the success of the Wii platform in general, thus enabling all the big profits they will get from the hardware and software sales.

 



My Mario Kart Wii friend code: 2707-1866-0957

Just_Ben on 05 September 2007
Magera said:
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.


 If it is a console, yes. But thats not the case for TV or other things. And thats why other electronic hardware has a higher margin for shops :)



Join up to the VGC Mario Kart Wii GP European League!

Or the VGC Mario Kart Wii GP Australian League!

Or the VGC Mario Kart Wii GP American League!

Or the VGC Halo 3 American League!

Or the  VGC Call Of Duty PS3 League!

Final-Fan on 05 September 2007
Just_Ben said:
Magera said:
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.


If it is a console, yes. But thats not the case for TV or other things. And thats why other electronic hardware has a higher margin for shops :)


OK, but we're talking about consoles, not "TV or other things", correct?

Tag (courtesy of fkusumot): "Please feel free -- nay, I encourage you -- to offer rebuttal."
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
My advice to fanboys: Brag about stuff that's true, not about stuff that's false. Predict stuff that's likely, not stuff that's unlikely. You will be happier, and we will be happier.

"Everyone is entitled to his own opinion, but not his own facts." - Sen. Pat Moynihan
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
The old smileys: ; - ) : - ) : - ( : - P : - D : - # ( c ) ( k ) ( y ) If anyone knows the shortcut for , let me know!
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
I have the most epic death scene ever in VGChartz Mafia.  Thanks WordsofWisdom! 

Around the Network
Viper1 on 05 September 2007
Magera said:
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.

Distribution in lower quantities also plays a role in why it costs more in other countries.

 



The rEVOLution is not being televised

nine0nine on 05 September 2007

i never thought of that viper, good point, i would expect japan was a safe zone for Nintendo, guarenteed sales plus the size of japan itself means distribution would be far cheaper than somewhere such as america.

Less Risks + Less costs = lower rrp.



Bodhesatva on 05 September 2007
NJ5 said:
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?

 Yes. All are sold for precisely one penny in profit for the retailer.

However:

1) We make quite a bit on the gaming accessories

2) The PS2 is sold to us for 114.99, which means we make 11 dollars on each system

Which means it's still profitable for the retailers to have these systems in their stores (to get people to come in and buy the accessories and games) and later on in the lifespan, the system is profitable for the retailers, too. At least, that's been the trend in the past. 



http://i14.photobucket.com/albums/a324/Arkives/Disccopy.jpg%5B/IMG%5D">http://i14.photobucket.com/albums/a324/Arkives/Disccopy.jpg%5B/IMG%5D">

drkohler on 05 September 2007
Magera said:
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..

No s/he doesn't get reimbursed. That is standard retailer business risk.. do not stock too much stuff to fall into such a trap..  Of course, if console makers would not reimburse retailers, they might lose important customers. In the real world, the big retailers will always be reimbursed while the small guy often gets royally screwed.