Making money on a console isn't such a bad idea

In the past year Nintendo has made $2.5 million profit for each of their employees. Why should we care? Because that money that others are losing on the hardware comes from somewhere. What sort of incentive does a large corporation have to provided great support, develop lots of killer titles for, and continue improving upon what they've released, when they are starting off in the red?

On the other side, Nintendo, who is making about $50 for every console they sell and can pump that money into more manufacturing options to meet demand, hiring more developers to make games for said console, taking more/bigger risks on new game ideas, and adding more features to the device.

Do we see more first party support because of this mega profit? I think so. What about features like the Everybody Votes Channel, News Channel, Weather Channel? Sure they are not complex applications, or vital, but some development team had to be paid to make them. They don't have to generate revenue for the device, since it can make it's own money.

All this talk about the Wii not being powerful enough, or not 'on par' with the PS3 or 360 doesn't really matter if the console is selling through the roof and they make money on each unit. So, I guess making a console that could be profitable wasn't such a bad move after all.

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Posted by Wiiviews

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