Fortune names next-gen console winner: the Nintendo Wii

Although the game industry finds that it’s too early to tell, the business world has already made their stand on the console race. To the business moguls that swim in oceans of profit, the console wars has already been decided.

And Fortune magazine, the iconic media vein that touches each of the Fortune 500 companies, announced the winner: the Nintendo Wii.

In fact, issue number 10 dated June 11, 2007 of Fortune has not only given their two million dollars-worth on the whole console wars issue, it was even plastered all over the issue’s front page. The story was entitled “How Wii Won” and was followed by the subs “The Secret of Nintendo’s Surprise Mega-Hit.”

Obviously not oblivious to the fast growing games industry, the business magazine dived into an in-depth analysis of Nintendo’s “secret formula” that made the profit-makers tender their decision of the game console race. There were many points that Jeffrey M. O’Brien reported, including financial and business relationships and outlooks.

Now everyone knows that the Wii sells out like nothing ever seen before, but what people didn’t know is that Nintendo has been gaining a US$ 50 profit per Wii sold and that is largely attributed to a ingeniously invented device that probably costs no more than $ 15 to make: the Wii remote.

Click on Full Article to read on Fortune’s coverage of the Wii-markable Nintendo console.

Although the game industry finds that it’s too early to tell, the business world seems to have already made their stand on the console race. To the business moguls that swim in oceans of profit, the console wars has probably already been decided.

And Fortune magazine, the iconic media vein that touches each of the Fortune 500 companies, announced a winner: the Nintendo Wii.

In fact, issue number 10 dated June 11, 2007 of Fortune has not only covered the Wii phenomenon, the story was even plastered all over the issue’s front cover. The story was entitled “How Wii Won” and was followed by the subs “The Secret of Nintendo’s Surprise Mega-Hit.”

Obviously not oblivious to the fast growing games industry, the business magazine dived into an in-depth investigation of Nintendo’s “secret formula” that made the profit-makers tender their decision of the game console race. There were many points that Jeffrey M. O’Brien reported, including financial and business relationships and outlooks.

Now everyone knows that the Wii sells out like nothing ever seen before, but what people didn’t know is that Nintendo has been gaining a US$ 50 profit per Wii sold and that is largely attributed to a ingeniously invented device that probably costs no more than $ 15 to make: the Wii remote. Fortune practically performed technical surgery on one Wiimote, separating it to its component parts, and priced each part:

• Accelerometer: $ 2.50
• Basic Memory Chip: $ 0.25
• Audio Amplifier: $ 0.50
• Data Converter: $ 0.50
• Rumble Pack: $ 2.50
• Bluetooth Chip: $2.00
• Audio Translator: $ 2.00
• Plastic Casing: Unknown
• Wrist Strap: Unknown

Major game publishers have also told Fortune magazine that they have high regards for Nintendo’s courage to brave new territory. And that might be because it takes only US$ 5 million to develop a game for the Wii. On a robust platform such as the PlayStation 3, it costs at least US$ 20 million to develop a game, Fortune pointed out. Ubisoft has claimed that Nintendo is the best console maker to work with. Electronic Arts named Nintendo as a game industry pioneer.

Competition may have not taken too kindly to the new-gen console, however. Microsoft‘s Peter Moore was quoted to have said, “I love the experience, the price point and Nintendo content of the Wii, but Microsoft provides experiences that Nintendo cannot provide.”

SCEA’s Jack Tretton took a more outspoken approach, saying that Sony also has made their own innovative controller, but doesn’t go backwards with technology as Nintendo does. In fact, he called the Wii a “re-purposed GameCube,” after he gave some credit to Nintendo’s success.

Fortune also pointed out that Sony was looking at their market and the world through the eyes of an engineer – “technology” and “latest” goes first in its books. They marked Nintendo as a more sensitive company, taking its cues from what’s happening with the outside world.

Fortune also predicted that the Wii could go on for a few years for Nintendo, until technology has become cheap enough to create a Wii 2.0 with PlayStation 3 technology. We’re speculating that they’ve probably taken cues from the semi-conductor industry, following the wake of Intel‘s “Nehalem,” “Westmere,” and the “Era of Tera” revelations, which should start coming to light starting next year.

Fortune also eyes a particular opportunity for Nintendo to call a US$ 50 price cut, queued right after Microsoft and Sony makes their attempts to make their consoles affordable as the race rolls on. They also point out that the Wii and Nintendo DS are now the game consoles’ “Mac vs. PC” conflict.

Fortune stresses that Nintendo really needs to jump up their productions efforts. They eye Nintendo making 1 million units a month, but recommend at least 1.5 million to 2 million units per month. Nintendo believes that could prove difficult for them.

But perhaps something to lighten up your day is the top brass at Nintendo giving out their one-liners. And so NeoGAF Forum contributor tnw took a few choice quotes from the prime three of Nintendo’s side and pegged the best ones as follows:

Shigeru Miyamoto was quoted as saying, “We were losing to the TV remote. So we thought, what kind of controller can we create that won’t make people afraid to touch it?” Satoru Iwata stood by his opinion and said, “We are not competing against Sony or Microsoft. We are battling the indifference of people who have no interest in video games.”

And last, but not the least, Reggie Fils-Aime was quoted to have said, “My name is Reggie. I’m about kickin’ ass, I’m about takin’ names, and we’re about makin’ games.” You may find this story plastered on the cover of issues published or sold in the Asia Pacific region. U.S. editions have a different version, but still sport the story for the same issue.

Via NeoGAF Forums