Why did your mommy get you a Wii for Christmas? Wii is the leader of the next gen consoles at the moment but all that stuff is figured out months to launch. Hence the run up. By the time you can buy the system and evaluate its games, it's too late, the real experts in the industry get to see what is up during E3 (access to which is restricted). In other words, you're late to the party if you are looking for a huge run up. I would watch Sony, their PS3 launch was too rushed, their launch titles suck for the most part and it will take at least a year before PS3 is actually ready to make a statement. Stock seems a bit undervalued, as the PS2 is actually doing great. Blue-ray is the real gamble, let's see if Sony can make this a standard.
Nope, but my friend's mommy's mommy's is going to buy one LOL! Yup, that old! Anyways, if we suppose Nintendo sells 100 million Wiis, then it'll make about $13 billion after tax. $33 billion market cap according to Morningstar...
Consoles are sold at a loss, often a big one. Only Nintendo has been able to produce consoles at break even and I don't think that was the case with the Wii. 100 million Wiis? Do you even know the situation with the next gen consoles? These companies have problems shipping out even 1 million units in a year.
Isn't this supposed to be very hot all around the world? Half a million in the US and people are crowding to get them. Suppose consoles are sold at a loss. The controllers supposedly cost $50 and are made for $15. 4 controllers for each console.
And no, I don't understand video games . Just heard some numbers from my avid gamer friends. Please continue, this is quite enlightening for me (no sarcasm intended.)
Well the Wii has a great launch game line up, as well as the innovative controller. IMO, and this seems to be the general consensus, the Wii is the top next gen console at the moment. But as I have stated, if you plan to invest in the video game sector, you have to be in the loop and know ahead of the public releases. Console manufacturers do not make money on the consoles but the game licenses. Only late in the console's life may the consoles actually make money on the unit sales. The initial losses on the launch of the consoles are quite big. The sale price is sometimes 50-75% of what the actual cost is. Controllers simply do not make up for that. Also, Sony & Nintendo brand controllers are of high quality and do not necessarily hold a high mark up. The goal of Sony, Wii and Microsoft is to get the units into the people's homes, cause once that is done, you know the game sales will come and the franchise fees will roll in. Yet, what really makes a console is the games and Nintendo really succeeded with their line up as well as innovation. These consoles are not easy to make and take time. Nintendo is the veteran of the business and has been able to make them the fastest and most cost efficient. 100 million units is ridiculous, smth like 2-3 million for the world in the first year is a tough task. For example, look at Sony, who is having problems even delivering 1 million units to US by fall 2007. Nintendo is claiming they will ship 6 mil units by March, who knows, but so far they probably did over a million worldwide. Nintendo was very well prepared, unlike Sony.
100 million includes 50 million for China and 50 million for the rest of the world . Though it may be spread out over a few years. I heard Wiis take $158 to make though hmmm