Nintendo's 'profits per employee' are higher than Goldman Sachs

by Alexander Sliwinski { Sep 16th 2008 at 6:00PM }

If there was ever any question as to how obscenely rich Nintendo is, the Financial Times has crunched some numbers to show the cash flow, per employee, at the House of Mario. The newspaper estimates that Nintendo produces more than $1.6 million per employee -- that's more than investment bank Goldman Sachs' $1.24 million per employee during its best year in 2007.

There are some caveats to the information, most of which revolve around how much outsourcing the Big N does. Nintendo makes so much money for having so few employees (3000 full-time), because many of the company's necessities (external development, manufacturing, public relations, etc.) are handled by outside companies. Also, don't think this means that Nintendo is compensating its full-time employees too generously. Goldman's average (by mean) employee received $660,000 in 2007, while the average salary at Nintendo was $90,900.

[Via GameDaily]

Tags: financial-times, ft, goldman-sachs, nintendo, profit

Reader Comments (Page 1 of 1)

Lone Starr @ Sep 16th 2008 6:04PM

Wow, this super meaningful statistic is going to piss off all the Goldman Sachs fanboys.

You know, all of them.

Dan @ Sep 16th 2008 7:18PM

It's also a stupid time to compare these two companies - since one is the market leader in one of the fastest growing businesses in the world, the other is an investment banking firm, at a time when there is major economic instability and talk of recessions - add to that the fact that the lehmans collapse is having a knock-on effect on all banking related share prices.

The boom that nintendo has had is definitely bringing in the cash now... but what happens when they release a new console and all the soccer moms and fad-followers are still happy with their Wii?

Mr Khan @ Sep 16th 2008 7:23PM

Certainly Nintendo stands to lose marketshare next generation as-is, but just as they emulated the NES's successful "disruption" strategy this time, they can have the next Wii emulate the SNES, keeping people who played Wii alone, but providing new incentive

More depth could be gotten out of Wii Sports, certainly. Making the motion experience more natural (beyond even what MotionPlus can do) could compel more new users and get old users to upgrade readily

Shagittarius @ Sep 16th 2008 6:05PM

For 90k a year I'd shove my dick between my legs and become a total Wii fanboy.

Haggard (Free Mr.ESC!) @ Sep 16th 2008 6:12PM

For 660k a year I'd develop a coke addiction, have numerous affairs and then unexpectedly drive myself off a cliff at 45.

Ridgecity @ Sep 16th 2008 6:15PM

actually when you shove a dick between you legs for money, you become a prostitute.

I'm happy that not only did Nintendo survive the onslaught from giants Sony and Microsoft but actually is beating them...

Lone Starr @ Sep 16th 2008 6:21PM

...beating them with a dick

Sidepocket @ Sep 17th 2008 12:01AM

Wait...you have a penis?

...

Could have fooled me.

Gehodra @ Sep 16th 2008 10:53PM

Do prostitutes make 90k a year?

kip @ Sep 17th 2008 3:39PM

Your mom told me she did, but that's only because she'll do the really nasty stuff.

gir @ Sep 16th 2008 6:05PM

Where's my new Zelda....NINTENDO?!?!?

vidGuy @ Sep 16th 2008 6:28PM

I really don't think we should expect a new Zelda until late 2010.

Mr Khan @ Sep 16th 2008 7:02PM

I think holiday 09 would be right.

2000 Majora's Mask
2003 The WindWaker
2006 Twilight Princess
2009 ????

Somebody else here came up with that model, sorry i stole it

They've been discussing Natively Wii Zelda since the end of Twilight Princess, and they've had it in active development (probably) for a year

Unless some "tea tables" are upended, 09 would be a good track.

religiousjedi @ Sep 16th 2008 7:53PM

Do not kill the greatest franchise EVAR!!!!!

(I'm looking at your attempt Phantom Hourglass...)

Blank-Mage @ Sep 16th 2008 10:18PM

It's a tug of war between the parts of me that demand Zelda, and the parts that want them not to rush it. And it hurts me.

(So...... any Midna fans out there?)

vidGuy @ Sep 16th 2008 6:06PM

D_Average @ Sep 16th 2008 6:07PM

Guess you could say their "fundamentals" are solid...

The Aggie CEO @ Sep 16th 2008 7:17PM

Now by "Fundamentals" do you mean "American Workers"???

cause if thats the case its only like 500 of those.....lol.......

D_Average @ Sep 16th 2008 11:17PM

Of course! They're also the same workers that created the Blackberry, such hard little workers they are!

Ninjakamster (PS360 FTW!) @ Sep 16th 2008 6:08PM

Hey Fernando, how about passing some money our way? You CAN have too much money right? ; )

Magetto @ Sep 16th 2008 6:13PM

I don't think fanboys get paid. For shame too since Fernando would most certainly have enough money to share with everyone. :(

Ridgecity @ Sep 16th 2008 6:20PM

fanboys do get paid, at least all those RRoD kids, that without any explanation still will love their machine once it comes back in 4 to 6 weeks...

Ninjakamster (PS360 FTW!) @ Sep 16th 2008 6:24PM

If I was in Nintendo and had the authority, I would seriously compensate Fernando in some form for the utter devotion and loyalty he has shown, valiantly fighting back all the raging 360/PS3 fanboys with their ideals of 1080P gaming, rich online gaming experience, large storage capacities, decent media playback capabilities, etc. who see the Wii has an abomination, a plight amongst the kingdom.

Mr Khan @ Sep 16th 2008 6:59PM

@ ninjakamster

you should read this: It's by a guy who thinks the exact opposite (that Wii is gaming's saving grace, and that the blight is the responsibility of Sony and MS)

He certainly comes off as having drunk a bit too much of the Nintendo kool-aid, but it's enjoyably written, and a neat little insight into modern gaming history

http://malstrom.50webs.com/theblueoceanarticles.htm

Ichi the One @ Sep 16th 2008 6:16PM

As with any company though, the executives are going to be taking home the vast majority of that money.

I still don't understand how Nintendo has pulled this off. Put out the worst console in ages with the worst games, overcharged astronomically, and got the best sales ever.

Ninjakamster (PS360 FTW!) @ Sep 16th 2008 6:18PM

I miss their glory days of the NES and SNES, they lost me after the N64. :(

Christopher Grant @ Sep 16th 2008 6:21PM

Exactly – the fact that key executives are undoubtedly skewing that average salary makes the low $90K figure even more worrisome.

vidGuy @ Sep 16th 2008 6:22PM

There are, arguably, better products for digital music than iPods. There are better and cheaper ways to do DVR than Tivos. There are certainly better operating systems than Windows.

You can argue for or against whatever products you want. Many consumers would turn your sentence around and say that the Wii is the best console in ages with the best games and is reasonably priced.

Apparently the market thinks differently than you do. I'm sure Nintendo is glad that they have people who know what the market wants. Being the market leader is just as much about marketing and key features as it is developing a strong overall product.

Massmass @ Sep 16th 2008 6:38PM

Ninjakamster (PS360 FTW!), what I find most humorous about the NES, SNES days, is that what made those systems so enjoyable was the third party support. I mean, really, Nintendo didn't develop many titles back then. That is to say, they didn't whore out their franchises.

Once the N64 hit and Nintendo pissed all over them, their consoles have suffered greatly ever since. With only Nintendo produced/developed/whored titles really making the "fun" cut.

Your comment just made me realize that so I thought I'd share, heh.

Edward @ Sep 16th 2008 6:50PM

OH. You mean like Mario 1-3, World and Yoshi's Island?

It has always been 1 Mario Kart, 1 Smash Bros, 1 F-Zero, 2 Zelda's per SYSTEM since each series was introduced. True Mario games are out LESS frequently since moving to 3D (1 per gen) and Metroid games have 2 max per console.

So WTF. Whoring our franchises my big far hairy arse.

Anyroad Nintendo (and a handful of other devs) are the only ones who consistently make enjoyable games for me. Just to balance out the Nintendo hate that's running around here. Unlike these other companies who keep hyping games and falling flat (Spore, Mercenaries 2, every other BIG MOFO ACTION FPS hybrid) I'm still enjoying and having great gaming funs from Brawl, Kart and friends.

Foetoid @ Sep 16th 2008 6:50PM

Hey Ichi, i know how they did it. The console is great, the controls are excellent when executed properly, the graphics are better than last-gen, it has the biggest back-catalog in gaming history (VC FTW), it is easily accessible to everyone and has enough hardcore games to cater for the really picky hardcore gamers like myself. Being the cheapest console doesnt hurt too (besides the recently price-dropped 360 arcade). It may be overpriced for the hardware, but the average consumer doesn't give a shit. It's the cheapest console, and thats what has driven sales.

And Ninja, its a shame they lost you after the N64. After hiring over 100 Xbox games, i found 2 worth owning (Ninja Gaiden and Fable). The Ps2 faired better, not as good though as the quality of games on the Gamecube.

iofthestorm @ Sep 16th 2008 6:51PM

The 1.6million is profit per employee not average salary or anything, so I'm guess that goes to shareholders and gets reinvested in R&D. But I'm sure if they wanted to they could pay their employees obscenely well. But then again, $90k per year isn't bad by any means.

Mr Khan @ Sep 16th 2008 6:53PM

if "ages" means the time since the Jaguar, then possibly. I mean i'll admit it: overpriced for what you're getting, utterly lacking in extra features, options, etc

But it has Nintendo software, aside from the unique 3rd party gems, and some excellent SEGA revivals. Compelling software keeps you coming back, especially if you're someone like me who really isn't excited by the lineup on the other consoles (though certainly not excited by the meagre lineup on the Wii) this holiday season

Okay, except for Fable 2 and LBP. Those i would definitely like to have.

ed @ Sep 16th 2008 6:55PM

Yea exactly Foetoid.

VC has the best rated games of yesterday... And so many that I missed the first time round.

I too found so few enjoyable games on the Xbox and other systems. I love my 360 but it just doesn't feel like a proper gaming platform for me, in that there hasn't been a game that I can properly sink my teeth into. I thought that might have been GTA IV since I'm a big GTA fan like but it fell short of my expectations. Nowhere near the quality of VC or SA, still play them thanks to Steam.

But it's not the cheapest system. At least here in the UK. The 360 spaz pack is about £150, and when the price is cut in September the proper 360 will be at Wii price. But WTF Nintendo have got such a good product that they don't need to cut the price for it to sell out and likely own Xmas again.

Massmass @ Sep 16th 2008 7:15PM

Edward, that was nice of you to forget about all the Mario parties, golf, tennis, smash, etc. Also, it was kind of you to put a blind eye to Nintendo failing at creating new, viable franchises outside of the DS market. You really are a nice guy. :)

Mr Khan @ Sep 16th 2008 7:18PM

That's IP whoring, not franchise whoring

Lets say that instead of Super Mario Galaxy, Nintendo made Super Mario Orbital in 2006, Super Mario Solar in 2007, and Super Mario Meteors in 2008, all main mario games that played similarly

The only franchise they whore is Mario Party

ed @ Sep 16th 2008 7:20PM

Are you a blind spacker? I said BRAWL. If you are blind I'll say it again -

There has been 1 Smash Bros game per system since the series was introduced 9 years ago. 1 game every 3 years, isn't that the same ratio of how many Metal Gear games there is? Nope - they've had 6 separate games out since 97.

Same for Tennis, Strikers and golf. 1 per system, right? And they only release a new console every 5 years......

And nobody cares for Party. Even Nintendo don't. They farm that out to Hudson and barring that last game (Hudsons game) it was a really enjoyable series. 8 games in 10 years isn't bad running.

Come on. You're not very good at this.

Ninjakamster (PS360 FTW!) @ Sep 16th 2008 7:24PM

The PS1 and PS2 became my NES and SNES, with their very large and diverse library of games, many third party gems. With the N64, its library just wasn't as good as the NES/SNES.

But now with the mistakes of the PS3, I've gone to 360. And I'm not upset at all the PR mistakes and losing exclusives, I am upset at many PS3's build quality problems, as my PS3 broke and them now killing off PS2 B/C entirely in their new models.

Massmass @ Sep 16th 2008 7:35PM

I stand corrected on Franchise Vs. IP, although the distinction is minor.

Regardless of time line, it is still WHORING. That's not to say they are making bad games, altogether, but they are no longer innovating in the games department. Where other studios are trying, albeit largely failing, but they are trying. It says a lot when Nintendo IPs are some of the most recognizable across the world. Especially considering they don't whore out into other consumer arenas. They mainly stay in Gaming. I don't mean to diminish Nintendo's success, but if you aren't getting sick of the same old IPs coming out, then you are truly in the minority when you take your head out of the Nintendo Fan circle.

Compare Nintendo IPs vs other major ones in the gaming industry. Nintendo is known for its IPs. Much to its credit. Which is good, but when you make it difficult to allow third party developers get in with lower royalties, better coverage, etc. it just becomes a one dog show. Which, if you are in love with Nintendo and its whoring that's fine.

pr_master @ Sep 16th 2008 9:23PM

They don't even mention Goldman Sachs has 30,000 employees and Nintendo only 3,000. Now do you see the big difference in profits???

Brodo @ Sep 16th 2008 10:21PM

Well... Im afraid to admit that I contributed to Nintendo's riches through the purchase of the biggest letdown of a console ever. The Nintendo Wii....
But dont worry guys! cuz when wii motion plus comes out it will completely make the wii do what it was supposed to do from day 1!!! Actually wait one second...they will make a wii motion plus 2.0 which will be added on to motion plus v1.

Brodo @ Sep 16th 2008 10:31PM

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