Nintendo Wii System and Games Markup Details

Looks like peoples in the retail industry are getting pretty stoked about the Wiis about to make it into their respective stores. We got our hands on the CompUSA hardware / software markup sheet for Nintendo’s new console, as well as some spy pics of some Target Wii endcaps and the variety of accessories those will be stocking, as well.

No, we’re not that hard up for stuff on the console, but we do think that $12.50 is a pretty weak margin on the console, while, as expected, games, and accessories have a much fatter profit for retailers. Anyway, check it out (price on the left is, of course, retail; price on the right is cost…

engadget - Wii retail details: markup and endcaps

Nintendo has stated that it will make a profit on every system sold, which is not the modern day norm where the system is the loss-leader. So clearly, Nintendo’s cost to produce, package, and ship the Wii is less than $237.50.

Still, a profit margin of just over 5% for the console is nothing compared to 25% for a game.

This explains the increasingly popular trend for retailers to force bundles on consumers during a hot console’s launch – the profits are in the software, not the hardware.

Daily Tech - Nintendo Wii System and Games Markup Details