Nintendo sees little profit in Wii

[Galactus]

Wednesday 7-Jun-2006 10:03 AM Even Iwata admits it won't contribute to Nintendo's overall cash stash - but the company has little need to worry

Nintendo's Wii may have won all the plaudits at this year's E3, but that doesn't mean its success is going to be vital to Nintendo's profit margins.

How do we know? Well, the big N admitted as much in a briefing over in Tokyo today, with company president Satoru Iwata saying that even if the company meets its sales targets, the Wii will add little to Nintendo's considerable cash stash and profitability - in the short term at least.

But that's not necessarily bad news, as it means Nintendo isn't depending on the Wii's success in quite the same way as Sony is really counting on the PlayStation 3 to contribute to the company's balance books.

Advertisement:Nintendo is aiming to sell around six million Wii's up to the end of the next financial year in March 2007, with around 17 million pieces of software attaching alongside the console.

However, the company also said it had ramped up production of the ultra profitable DS handheld Lite, to around 2.2 million units a month since May, undoubtedly to meet the huge demand which will accompany US and European Lite launches.

 

[Kipobe]

Yeah, I never thought I'd be back into handhelds again, but I'm really into the DS. I'm borrowing my friends' for now, and will probably get the Lite a few weeks after launch.

 

[Doc_OCK_4MUGEN]

The DS is really fun... They were right when they said Touching IS good... giggidy! giggidy!
Wii will be fun too! The ONLY thing that's hurting my interest on buying a PS3 is the expensiveness of the system...

 

[WeeZiTe]

I hated handheld gaming. I bought a Gameboy SP and never used it. But with all the games out/coming out for the DS, I had to get a Lite.

 

[WhatsHisFace]

Six million units by March 2007? That would be amazing, considering they're not only launching against the PS3, but because they're also going to be facing shortages.

 

[Future Prez]

I think they're being modest. If the Wii sells well at a low pricepoint, they'll still reap a pretty good profit because none of their technology is state-of-the-art. Sure, its revolutionary, but none of the parts are overly expensive.

And the DS is awesome. I already beat the main storyline in New Super Mario Bros., but I'm still playing to get all the extra worlds and star coins. Its games like this that sell hardware.

 

[GoldenAgeHero]

hilarious


another one

 

[Casius--J]

meh i really cant get into the DS but its no suprise nintendo arent counting on the wii for their profits cause they own the handheld market!

But i'll be sure to get a wii before the ps3 as it will cost much less and looks to host some interesting game play.

 

[Spidey-Bat]

Six million units by March 2007? That would be amazing, considering they're not only launching against the PS3, but because they're also going to be facing shortages.

Wii will beat out PS3 due to price. As for shortages, Nintendo won't suffer since they're not using the most advanced parts like the 360 did.

 

[WhatsHisFace]

Wii will beat out PS3 due to price. As for shortages, Nintendo won't suffer since they're not using the most advanced parts like the 360 did.

Nintendo has never beaten Sony due to price.

And it doesn't matter if they're not using "the most advanced parts" because chip production is only a small part of manufacturing. I did hear that Nintendo had their own factory, which may help keep supply moving, but to be realistic at the very least, they'll have shortages.

 

[SpiderFan17]

Nintendo has never beaten Sony due to price.

Sony has also never priced a low end model of console at 500, either.

Point is, it seems somewhat more likely than before. If you're speaking strictly in historical terms, you're absolutely right, but I think this generation has already shown us that history means squat in the long run, its a whole new ball game now.

 

[Spidey-Bat]

Nintendo has never beaten Sony due to price.

And it doesn't matter if they're not using "the most advanced parts" because chip production is only a small part of manufacturing. I did hear that Nintendo had their own factory, which may help keep supply moving, but to be realistic at the very least, they'll have shortages.

In the past, Sony's price was never 3x Nintendo's. It's not a major factor when it's $200 compared to $300. But $200 compared to $600, now it's significant. They probably will have shortages at some point, but they won't be as horrible as they were for the 360. They had a poor supply at launch at it took them about 5-6 months until you could get one anywhere. My prediciton is Nintendo will have a huge supply at launch, then have a shortage for a month and then have a big supply with a steady one following.

 

[THWIP*]

Wednesday 7-Jun-2006 10:03 AM Even Iwata admits it won't contribute to Nintendo's overall cash stash - but the company has little need to worry

Nintendo's Wii may have won all the plaudits at this year's E3, but that doesn't mean its success is going to be vital to Nintendo's profit margins.

How do we know? Well, the big N admitted as much in a briefing over in Tokyo today, with company president Satoru Iwata saying that even if the company meets its sales targets, the Wii will add little to Nintendo's considerable cash stash and profitability - in the short term at least.

But that's not necessarily bad news, as it means Nintendo isn't depending on the Wii's success in quite the same way as Sony is really counting on the PlayStation 3 to contribute to the company's balance books.

Advertisement:Nintendo is aiming to sell around six million Wii's up to the end of the next financial year in March 2007, with around 17 million pieces of software attaching alongside the console.

However, the company also said it had ramped up production of the ultra profitable DS handheld Lite, to around 2.2 million units a month since May, undoubtedly to meet the huge demand which will accompany US and European Lite launches.

THE THREAD TITLE SHOULD'VE READ "NINTENDO SEES A WII LITTLE PROFIT"

 

[WhatsHisFace]

Good points.

I also keep forgetting the PS3 is $600.