News: Nintendo Are Making Money
Posted 20 Nov 2006 at 13:20 by Fierce_Link
That's according to Nintendo of Canada exec Pierre-Paul Trépanier.
Nintendo, like their competitors Microsoft and Sony, like to cause a bit of a stir, especially with the battle of words. Nintendo of Canada Exec Pierre-Paul Trépanier is certainly no exception. He caught up with GamesIndustry.biz and revealed that Nintendo are already earning big bucks from yesterday's launch.
"We make a profit on the system itself," Trépanier said. "Unlike our competitors, we don't have ulterior motives; we're not in it to sell HD TVs, or to become the operating system in the living room or anything like that.
"We're in the gaming business, and we have to make money from everything we sell - and we are making money from day one on the Wii."
Strong words, but you'd expect a little trash-talking, especially so early on in the console wars. However, are these comments unfounded? It's obvious that he's talking about rivals Microsoft and Sony, who are aiming to push HD TVs and also software such as blu-ray and HD-DVD. Nevertheless, it is good to know that Nintendo have a healthy cash flow.
"We have 4 million units ready to go, which is something our competitors have struggled with... Historically a bit more than half of our worldwide shipment would go to North America, I think that's probably a good estimate."
"We're receiving a constant supply. Every week there is a flow of product to the marketplace. The extremely complex and sophisticated supply system ensures that product will be delivered quickly to the stores that need it.
"We have a good supply management system that evaluates fairly well the demand and pull from each individual store depending on its size, class, location, seasonality and things like that," Trépanier explained.
"We're not putting fixed numbers for stores; we really assign quantities based on historical pull."
Nintendo seem to be on the up, and it's vital that they keep momentum flowing, at least until the Wii launches in Japan and Europe.