An analyst in Japan has estimated the profit that each Wii sold generates in Japan, the U.S. and Europe. With currency conversions factored in, the Wii makes the most money in Europe ($74 each), followed by the U.S. ($49) and Japan ($13).
Nintendo President Satoru Iwata promised from the very beginning that the Wii console would generate a profit on day one. While Nintendo has not disclosed exactly how much it costs them to make the Wii console, a new report in the Financial Times cites Nikko Citigroup analyst Soichiro Fukuda who estimates that Nintendo's gross profit per console is 1,500 yen in Japan, 5,600 yen in the U.S. and 8,500 yen in Europe. That equates to about $13, $49 and $74, respectively.
According to a report out of Tokyo from business publication Financial Times, global sales of the Wii have now overtaken Microsoft's Xbox 360, despite the Xbox 360's one-year head start.
Fukuda says that Nintendo is able to make more money on the console in the U.S. and Europe because of a slightly higher retail price and the bundling of the Wii Sports software. While the Wii is a profitable endeavor for Nintendo, the company's rivals Microsoft and Sony have yet to make money on their new platforms. Microsoft is aiming to make a profit in its Xbox division in 2008, while Sony likely won't profit on the PS3 until the following year.