Buy Nintendo Wii

You know, for Nintendo, it’s always been cool and shady. Much unlike Sony's PS3 or Microsoft's Xbox 360, Nintendo's Wii console has been profitable from the very beginning. Whereas Sony and Microsoft are largely relying on software sales to recoup hardware losses, Nintendo did just as well played upon the advantage of profiting on both hardware and software.According to security analyst David Gibson, who recently spoke to Forbes, “each Wii sold brings in $6 of operating profit for Nintendo. That would mean that just in the month of October for the United States alone, Wii sales generated roughly $4.8 million in operating profit for Nintendo”
Also, Forbes points out that Nintendo sells roughly 60 percent of all Wii games, compared to 30 percent for Microsoft and 15 percent for Sony. Wii users are also expected to buy the most games this year, 220 million, compared with 120 million PS3 games and 125 million for the Xbox 360. And importantly for Nintendo, although those games are sold for $50 instead of $60, they generally have a higher gross margin than competitors' software – 65 percent compared to 50 – 60 percent. Put it all together, and the bottom line is Nintendo is doing quite well.

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