7 ms·

While that might be the case, Microsoft and Sony obviously make up for selling at a loss through game revenue and subscriptions (Xbox Live, Playstation Network)

While that might be the case, Microsoft and Sony obviously make up for selling at a loss through game revenue and subscriptions (Xbox Live, Playstation Network). I wouldn't be surprised if Microsoft or Sony made more money per console than Nintendo after accounting for game revenue and subscriptions.

rbanffy 17y ago
It depends on Nintendo earning significantly less per game than Sony or MS and Nintendo users buying significantly less games per console. I seriously doubt this is the case.
axod 17y ago
Very much doubt it. Also note that a large number of wii games are 'in house' through Nintendo. So Nintendo makes larger margins on games than Sony or MS. Even if you just measured the profit from the game 'wii sports' vs profit from xbox live subscriptions, I'd bet Nintendo trounced them. As far as I'm aware, Sony and MS have to share a large amount of each games sale with publishers and game developers etc. Nintendo does most of that themselves for the big wii games, so they get far higher margins.
- Tamerlin 17y ago
  Don't forget the large number of game studios that Microsoft has under its umbrella, including ones that no one has heard of like, say, Bungie ;) Interestingly, it seems as though the MBA's don't harass the game studios very much. Too bad MS management hasn't taken a lesson from them... but I guess that's what happens when you start bringing in "professional managers (tm)".
Splines 17y ago
As of this Sept., Xbox's tie ratio is 8.8, PS3's tie ratio is 6.8, and Wii's is 6.5 [1]. Per console, it does look like Xbox and (barely) Sony did make more money per console. That doesn't really mean all that much though, since Wii's console base is roughly twice that of the Xbox. [1] http://www.gamasutra.com/view/feature/4172/npd_behind_the_numbers_september_.php?print=1 http://www.gamasutra.com/view/feature/4172/npd_behind_the_nu...

rbanffy 17y ago

It depends on Nintendo earning significantly less per game than Sony or MS and Nintendo users buying significantly less games per console. I seriously doubt this is the case.

axod 17y ago

Very much doubt it. Also note that a large number of wii games are 'in house' through Nintendo. So Nintendo makes larger margins on games than Sony or MS. Even if you just measured the profit from the game 'wii sports' vs profit from xbox live subscriptions, I'd bet Nintendo trounced them. As far as I'm aware, Sony and MS have to share a large amount of each games sale with publishers and game developers etc. Nintendo does most of that themselves for the big wii games, so they get far higher margins.

Tamerlin 17y ago
Don't forget the large number of game studios that Microsoft has under its umbrella, including ones that no one has heard of like, say, Bungie ;) Interestingly, it seems as though the MBA's don't harass the game studios very much. Too bad MS management hasn't taken a lesson from them... but I guess that's what happens when you start bringing in "professional managers (tm)".

Splines 17y ago

As of this Sept., Xbox's tie ratio is 8.8, PS3's tie ratio is 6.8, and Wii's is 6.5 [1]. Per console, it does look like Xbox and (barely) Sony did make more money per console. That doesn't really mean all that much though, since Wii's console base is roughly twice that of the Xbox. [1] http://www.gamasutra.com/view/feature/4172/npd_behind_the_numbers_september_.php?print=1 http://www.gamasutra.com/view/feature/4172/npd_behind_the_nu...