Fortune: Nintendo is beating Microsoft and Sony
by John Bardinelli 
{ May 31st 2007 at 2:00PM }
Taking a look at Nintendo's finances, the company generated over $8.26 billion in revenue last year, or $2.5 million for each of its 3,400 employees. By comparison, Google's employees generated $994,000 each, while Microsoft's staff scraped in just $624,000. Exchange rates and fiscal calendars complicate the comparison, but the difference is still striking.
Nintendo's strategy has been successful in attracting new gamers to the fold, but what about core players who grew up with NES controllers in their hands? Are we as smitten with Nintendo as Fortune seems to be? Is Nintendo's success little more than new players getting a taste of videogames for the first time?
[Thanks, Tweak]
Reader Comments (Page 1 of 5)
Mr Khan @ May 31st 2007 2:04PM
If that's true, than Nintendo annihilated Microsoft last gen, not lost by a small margin
Its all about sales, plain and simple, its only going to help the consumer a little if Nintendo's making hordes of profit (more money could go into R&D, which may lead to better games/accessories/etc), but it really doesn't matter
Anam @ May 31st 2007 2:08PM
As a core player who grew up with a NES controller in my hand, I will say that I love Nintendo for giving me the virtual console, allowing me to relive that NES controller goodness. So yes, I'm smitten.
Still waiting for a truly great Wiimote game though...
Revolver @ May 31st 2007 2:09PM
It's just too premature to come out with this kind of article. We'll have to wait and see if the Wii has any legs. I think we will have a clearer picture by early 2009.
Erik Novak @ May 31st 2007 2:10PM
When Nintendo wins, Wii lose. :(
And I own one.
required @ May 31st 2007 2:11PM
I agree with Revolver.
XGamerX @ May 31st 2007 2:11PM
wow their rolling in money. Come a long way from the rumors of years ago about microsoft buying them out.
silence @ May 31st 2007 2:15PM
This battle has just begun so claiming a winner is stupid. I own a Wii and it's been collecting some major dust (Literally)since beating Zelda. Mario Party 8 got destroyed by BAD reviews. If Nintendo can't get their 1st party games in order then I can't see this lead being much of anything.
Anam @ May 31st 2007 2:14PM
Also, does anyone think that image is a bit of a rip-off of ipod?
Cheez-It @ May 31st 2007 2:15PM
I grew up with the NES and (later) the 286 and on... I find the Wii refreshing. I had completely given up on console gaming, and was hanging onto PC gaming by a thread. The Wii has gotten me back into it, and has enabled my fiance to start participating and enjoying one of my favorite hobbies with me.
I've had some great fun already, and while there may be a little draught right now, anyone who has any experience with gaming in general would realize this is bound to happen in the first year of a consoles life... Scratch that, the first *summer* of a consoles life. The summer always sucks for games. I'm anxiously awaiting many upcoming titles, and am even more excited for some full fledged sports sims.
megaStryke @ May 31st 2007 2:17PM
By 2009, jaded gamers are going to be all like, "Yeah, Nintendo may still be selling out the wazoo... for now. But it's on its last legs, I guarantee it! It's only been two years! The console cycle is far from over! There is no way to determine a winner yet! Give it three more years and THEN we'll see who's on top!"
Cheez-It @ May 31st 2007 2:17PM
Revolver: That's just incredibly dumb. Regardless of how long the Wii's legs last, every console has *already* generated profit for Nintendo. It still sells out every month. Do you *honestly* believe it could be anything but a success? If not, you need to pull your head out of your ass and accept reality.
Silence: Did anyone expect Mario Party to be decent? Your argument is equally retarded. Come back and post if Metroid, Smash Bros, or Mario suck.
Fernando Rocker @ May 31st 2007 2:18PM
@Anam
Dont worry... Metroid Prime 3 is the beggining of the really good Wii games (not ports)... by the time Metroid is released (August) every month a very good and exclusive game will come to the Wii, so, just wait 3 months more...
Wes @ May 31st 2007 2:19PM
Weird. I thought everyone knew that Microsoft no longer loses money on most models of the xbox 360 hardware? As far as I know, only Sony loses money per console hardware sale atm?
I wonder how many employees google and microsoft has? I think the revenue per employee might be less for Microsoft than Nintendo, but how about profit per employee? or listing Microsoft's employees? Microsoft might have, who knows, 4x? 8x? Nintendo's 3k employees.
machrc @ May 31st 2007 2:20PM
Once past the hype, it sits as a dust collector. I bought into zelda, paper mario, even the wierd marble game. Its sucks that there is nothing to look foward to but more mario, and ummmm super smash brothers.
Walking Contradiction @ May 31st 2007 2:21PM
Im glad Sony is selling their consoles for a loss. You more bang for your buck!
$600=you get Blueray, HDMI, HD Graphics,HD & other media option
$250=you get rehash bullshit gamecube games, no HD.
Nintendo knows casual gamers are easly to manipulate. If you try to sell a car to a person that don't know shit about cars you get the same thing. A easy sell!!!!
Walking Contradiction @ May 31st 2007 2:23PM
Cheez-It
Those games will fail just like Mario Party 8 did. That game is horrible!
SuMtOnE @ May 31st 2007 2:23PM
my very 1st system a NES den a SNES den way later on a gamecube which i brought for $20.00 ... but than that was it... =(
Slvrgun @ May 31st 2007 2:23PM
Does the gaming industry really win? Or is Nintendo the only victor? Judging by my experience with the Wii, my friends experiences, and reviews the Wii hasn't really showed anything stellar or revolutionary. If anything all it has shown is how much money can be made by banking off of the casual crowd. When you combine extraordinarily simple "waggling" controls, and the ability for anyone to play even Grandma, and you make it fun how can you not be successful?
I think the Wii is hugely successful because it has infiltrated popular culture. The PS2 was huge, but it relied mostly on traditional gamers. I honestly wonder what this success for Nintendo means for the future. Will this generation be the end for us traditional gamers? I want to know the answer but unfortunately the outlook is so terrifying that I will just wait and see what happens.
Spitkicker @ May 31st 2007 2:24PM
Let's see..sell a cheap assed system with a gimmicky remote, then basically use a gamecube but call it next gen. even though it is not. Profit on every piece of hardware and create a 'shortage' to keep demand up. Of course they are gonna sell well. Give it a year then we'll see what's happening. I'm not a nintendo hater I just don't think the system is all that great. But it is selling for now.
Anam @ May 31st 2007 2:24PM
@15
I paid $250 for something I wanted. That is a better deal than paying $600 for something I don't.
Walking Contradiction @ May 31st 2007 2:25PM
Also!
The Wii will not last as long as 360/PS3. Its only a matter of time til the casual gamers lose the desire to play Mario minigames.
whosmav @ May 31st 2007 2:27PM
Like it or not this article is making the Wii an even bigger success. People have a way of listening to major pubs. The Wii will only get more popular. The best stuff has yet to arrive(like online stuff). Nintendo is smart to wait for a larger user base and then to hit em off with some hot connect24 features. So many people want the damn thing its crazy. Friends of mine are demanding a Wii Party. Thats nuts. I haven't openly discussed videogames with "non-gamers" in, well, never I guess. But now EVERYBODY is interested.
The Wii's wave has not peaked. Its still rising.
Cheez-It @ May 31st 2007 2:27PM
Slvrgun: You are dead wrong about the PS2. The PS2 brought gaming out of the pimply faced nerd-in-the-basement realm and into the hands of adolescent males and immature men the world over.
The Wii is opening the audience to include even more people. With the sales the Wii is enjoying, how the fuck could you possibly imagine developers not coming out with some fantastic content?
Walking Contradiction: Save it for someone who responds to trolls. I was about to respond to your other post before I realized what you were.
megaStryke @ May 31st 2007 2:27PM
If I were buying, say, a new Ferrari and it was being sold at the kind of loss at which Sony sells its PS3s, I'd want to know what the hell was wrong with it and if there was some kind of catch.
silence @ May 31st 2007 2:29PM
*cough* overhyped *cough*
and yes I own a Wii...
JodyAnthony @ May 31st 2007 2:32PM
i see the usuals are here.
Walking Contradiction @ May 31st 2007 2:32PM
Cheez-It
You know im right thats why you called me a troll. I must have hurt your feelings. I don't want you to respon anyways. Your a Wii fanboy without any logic.
whosmav @ May 31st 2007 2:34PM
Walking Contradiction-
Go ahead and spread your hate, your opinion doesn't matter. You sound retarded. Mario...Metroid...Smash Bros...these are going to suck? Is Sony paying you to say that bullshit?
OH and the Wii is such an EASY sell. You only have to sit in fucking line to get one, months and months and months after the shit came out.
What an EASY sell!
Do everyone a favor and don't post again...ever
Walking Contradiction @ May 31st 2007 2:35PM
"The Wii is opening the audience to include even more people. With the sales the Wii is enjoying, how the fuck could you possibly imagine developers not coming out with some fantastic content?"
Easy. The casual audience would play a game that was a minigame about taking a shit if it could get their rocks off for a second. The developers know this! Look at the quality of games on the Wii. Duh!
Walking Contradiction @ May 31st 2007 2:36PM
"OH and the Wii is such an EASY sell. You only have to sit in fucking line to get one, months and months and months after the shit came out"
Because Nintendo won't ship more than three to a fucking store. No wonder the hype is still here. You guys are easily manipulated.
Tweak @ May 31st 2007 2:37PM
WEWT!! I AM tEh POST!
Cheez-It @ May 31st 2007 2:39PM
You offered nothing to argue. You told me that 3 games would suck. You typed "blueray", and you discussed how people buying the Wii must not know anything about consoles because they are so easy to manipulate.
I suppose I could point out how Sony manipulated millions (videophiles who purchased the PS3 for Blu-Ray alone exlcuded, they are a tiny group) into purchasing a feature they didn't need (or in many cases even want).
I personally picked up the Wii because I enjoy retro games, I enjoy physical activity, I enjoy social gaming, and I enjoy less "mature" (read: less immature) games, games that Nintendo does an outstanding job creating. But hey. I must be brainwashed!!!!!!
Troll.
samfish @ May 31st 2007 2:39PM
"It's just too premature to come out with this kind of article. We'll have to wait and see if the Wii has any legs. I think we will have a clearer picture by early 2009."
I don't. It's still too early to tell, but I think we'll know by March of '08.
Spitkicker @ May 31st 2007 2:39PM
Let me settle this flame war right now...the wii sucks. I said it. It is good it has opened up a new audience to gaming but the system still sucks. Give me some games aimed at people over the age of 14 and maybe I would be a little bit more interested. What's that Resident Evil? Pass, I'll buy it on a real next gen system, an XBOX 360. Oh Nintendo I had high hopes for you when it was announced but I have had much experience with them (at my job) and it plain sucks. Don't get sensitive fanboys it's just an opinion. Your turn
whosmav @ May 31st 2007 2:41PM
What is this casual audience crap I keep hearing about? No one I know casually wants a Wii. In fact nothing has been casual about it at all. Most people are stoked as a bitch to play the Wii.
Face it people, its the entire gaming audience that is buying the Wii. Its not a bunch of people that don't play games. Its gamers that don't buy crap like 360 and PS3 that are full of shit they don't want.
required @ May 31st 2007 2:42PM
"Its all about sales, plain and simple"
Only if you're short sighted.
Cheez-It @ May 31st 2007 2:43PM
Spitkicker:
By aimed at an audience older than 14, do you mean vulgar, immature, gratituous shit? It's called personal preference. I enjoy "mature" titles every so often, but I often find myself enjoying cutsy or cartoony titles far more. Why? Perhaps because I don't give a shit about what (I think) other people would think.
jay @ May 31st 2007 2:44PM
As a life long gamer, I love my Wii :)
I grew tired of all them racing games on my Xbox, thinking I'd only buy F-Zero in the future I gave up on the genre. Then I played Excite Truck and love it *only* for the controls. With a custom soundtrack, can't fault it, cept I'd have liked a bucket load of extra tracks.
PC for graphics and the "cinematic" experience, because I can afford it. Wii for the immersive time-absorbing games. All I need for the next 5 years, oh, and a DS.
*coming from previous Xbox owner
Vidikron @ May 31st 2007 2:45PM
Wal-Mart makes a ton selling cheap stuff too (though with thinner margins).. .doesn't mean it's the best, it's just cheap and accessible. Nintendo has long been masters of ripping their fanbase off without actually appearing to do so. People will ridicule MS and Sony for microtransactions, and then turn around and buy overpriced VC games and the next Nintendo rehash. With the Wii Nintendo can rehash allt heir games yet again, but claim 'originality' because they tacked on the motion controls... and their rabid fanbase eats it up. The bottom line is the Wii's line-up really isn't any better than the PS3's and is far worse than the 360's, but it's selling like hotcakes. It's all about pricing and hype. Plain and simple.
I've got a Wii and am slowly working my way through Super Paper Mario, but beyond that it spends most of it's time collecting dust.
Yes, I'm jaded Wii owner.
Fernando Rocker @ May 31st 2007 2:45PM
@Cheez-It
Im with you... the "mature" games are played by 14 years old kids that believes that a mature game is a game that have a lot of violence...
In fact, look at the stores... the audience of the PS3 are fucking puberty emo boys. The wii is for veterans players like us, who grow up with videogames, since the Nes.
Nintendo will bring some amazing games... this is just getting started.
Cheez-It @ May 31st 2007 2:45PM
jay: Same deal here. The Wii is a great combination with the PC (and I would imagine 360 if you prefer consoles over the PC).
whosmav @ May 31st 2007 2:45PM
26-
Usuals?
Striderhayasa @ May 31st 2007 2:45PM
I've talked this to death over at kotaku. If Wii supplies us great titles other than mini game comps then I'm good.
required @ May 31st 2007 2:47PM
"By comparison, Google's employees generated $994,000 each, while Microsoft's staff scraped in just $624,000"
What does that have to do with anything? I'm sure Google has more than the 3,400 that Nintendo has and I know Microsoft does.
My hunch is that this Fortune "article" is simply the printed equivalent of a VNR.
Tweak @ May 31st 2007 2:48PM
Who knew that me submitting this news post would rile-up so many gamers?
Wow.
Almack64 @ May 31st 2007 2:48PM
@ Other wii owners
Man am I the only wii owner that has actually enjoyed the games that been out? Or have you other guys that keep saying the only good games out are Zelda and Wii Sports actually played games other than Zelda and Sports.
If that's the case here are my personal recommendations of the games I played and beat
You should at least rent if not buy these. *Elebits, *Trauma Center, Excite Truck,Paper Mario, Carbon, Sonic, *SSX Blur, Rayman and *COD3.
(* these really stood out to me as games that show how motion controls can be much better than traditional ones)
Here are some ok games in my opinion that's good for some rental fun, Red Steel, Monkey Ball, TMNT, Pirates, .
Games I don't recommend Avatar, Bust A Move, Spiderman 3
Sorry I'm just so sick and tired of Nintendo Fans saying there's nothing good out now and they're waiting for Metroid. If its just that you don't want to "invest" in a game you can beat in a week, I say get a rental subscription but don't let replay value stand in the way of you playing some great games.
Kizzle @ May 31st 2007 2:49PM
"When Nintendo wins, Wii lose. :(
And I own one."
Seconded. Biggest disappointment ever.
Careful what you wish for, Nintendo fanboys. This industry is headed for a really depressing and stagnant period if the Wii manages to keep momentum going beyond the first couple of years.
Slvrgun @ May 31st 2007 2:50PM
@Whosmav
Please tell me why it seems like you are settling for less. I'm not trying to start a flame war, but when both the Xbox 360 and PS3 came they both came well equipped to go online, chat, IM, and play with people all around the world. But wait, lets take it back just a little further, and then you can explain to me why Nintendo is now suddenly getting online. The online console experience really began with the Dreamcast in 1999. The Gamecube was released in 2001, two years after the Dreamcast and it still did not have a online solution. Nintendo's outlook on the situation: We don't need an online solution. When the Xbox released, it featured built in ethernet, and soon afterward Gamers across the globe could play each other on Live. Sometime later even the older PS2 got an online solution. So what's my point? My point is why is Nintendo just now getting into the mix? Oh yeah I know...they sold 7 million console and it doesn't matter when you release things because regardless the marketing hype is so good that even if they don't deliver people still will by the Wii. Just awesome.
Raikage @ May 31st 2007 2:50PM
...I just bought Mario Party 8, well I'll probably like it because I haven't played one since 3 on the 64.
@ The Clown Stick who is saying Mario, Metroid, and Smash Bros. is going to suck:
LOL! Thats like me saying that Halo 3, Metal Gear 4, and Final Fantasy (whatever number they're at) are gonna suck.
It's not gonna happen, all these are great games unless you don't like that type of game (Like me and FF(turn based FTL), I don't like it but it doesn't mean it's not an amazing game!).
BTW one of the stores I went to had 12 in their last order. Note this is Idaho. That covers like 1/4 of the state lol.
Walking Contradiction @ May 31st 2007 2:50PM
Cheez-It & Rocker
You both are ignorant. I see more adults with a PS3 than little kids, but everytime im in bestbuy there is a little kid playing the Wii on display with Paper Mario.
How can you call yourseves verterans? You still only play mario-based games. I grew out of that in the 90's. Awwwhahahahaah Veterans??!!!