Saturday, December 13, 2008

Why Wii Is Better Than Sony’s PS3? (Profit Aspect)

Nintendo rocked the gaming world when it brought out the Wii gaming console 3 yrs ago by turning an entirely new demographic of users on to gaming. Age from 10-50 yrs old all stand in line to buy Wiis. Means that Wiis is more acceptable by all walks of life compare to Sony’s PS3! It's all about fun & easy-to-use gaming experience!

To date, Nintendo has sold nearly 35 million Wiis (US, 12.6 million. The biggest market). Sony's PlayStation 2, which has sold 43 million units since 2000 worldwide. Why on earth Sony can’t beat Nintendo in term of profit while the total of gaming console is out numbered?

Reason No.1 - Price factor. Nintendo's strategy is to buy inexpensive components instead of making them in-house, allowing the Wii to sell for $260 while the PS3 costs $300! The real winning point is Nintendo has figured out how to make money from its console sales. Sony loses money on each Playstation sold! Every Wii brings in $6 of operating profit for Nintendo!

Reason No.2 – Games Purchased. Wii users are expected to buy the most games on year 09, 220 million, compared with 120 million PS3 games. The top three Wii games--"Wii Play," "Super Smash Brothers Brawl" and "Super Mario Galaxy"--are all Nintendo's own titles, but the top three for PS3--"Grand Theft Auto IV," "Call of Duty 4: Modern Warfare" and "Assassin's Creed"--are all from outside developers, not from Sony! By making most of its games itself, Nintendo risks sacrificing the chance to earn licensing fees from as many third-party developers as its competitors. It also prices games cheaper--at $50 versus $60 for the Sony.

No comments:

Post a Comment