Toy’s R Us Find’s Wii Profitable

The success of the Nintendo console, the Wii, has proven to change the industry in many new and creative ways including reinvigorating slow product sales at Toys R Us. “The company went from a loss of $42 million at the same time last year to a profit of $13 million for the three months ended August 2nd,” says Gamasutra who spoke with CEO Gerald Storch.

Revenue was up 6.3%, in part, thanks to the Nintendo and its hot moving Wii and Wii Fit products. While Nintendo struggles to supply enough units for the strong demand, Toys R Us has no problem emptying their stores of any hardware they receive.

Months after the Wii launch we witnessed parents waiting in lines before the store opens just to see if they had Wii’s arrive for the opening. Although we’re sure it was a hassle to answer the phones with the typical response, “no, we’ve got no Wii’s in stock,” the long term plan has proven successful.

Have you finally managed to get yourself a Wii? Did you pick it up at Toys R Us?

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Episode 508: MarriageEpisode 508: Marriage

TJ announces his nuptials the previous week, finally marrying his live-in girlfriend of 10 years. All that, and many parables that had to be cut from the podcast lest it last 90 minutes.

That said, there’s plenty of news this week:

Let us know if you spent $50,000 on a virtual spaceship.

End of 100 Million Dollar Games?End of 100 Million Dollar Games?

Gigaom had a great writeup about how Grand Theft Auto IV marks the end of “next generation” as we know it, stating, in more words or less, the game is a failure. GTA: San Andreas sold 21.5 million copies during its time on the shelf while GTA IV has sold roughly 9 million copies as of June 7th.

Granted, the game is still on the shelves and will still get sales, but the mass of “hardcore gamers” have had their fill and either purchased it or will not. The end result? A huge tapering of sales numbers for the graphically impressive game. Take-Two spent USD $100 million to develop the game which had great opening sales records but has gone down drastically since.

Imagine the title gains them USD $30.00 per sale in profit (considering distributors get the game for roughly USD $45 to $48.00 USD), taking into account shipping of the product, marketing and all the materials that go into producing a copy, they’d have to sell a large quanity of game titles to break even, which I think they have done.

Nobody is in this industry to break even. A block buster title should make block buster profits, right? Else, why bother to spend the 100-million when a Wii title can double or triple the profits with six months of development?

(more…)

Episode 700: Seven Zero ZeroEpisode 700: Seven Zero Zero

The TD Gaming Podcast reaches its big 700th episode milestone, but unfortunately it covers some boring industry news about Microsoft, Activision, Lies of P, and giantesses in Baldur’s Gate 3.

The news items include:

  • Microsoft closes $69 billion acquisition of Activision Blizzard
  • Phil Spencer: Activision Blizzard games are not coming to Game Pass until 2024
  • Cities: Skylines 2 performance has “not achieved the benchmark we targeted”
  • Cities: Skylines 2 won’t use Steam Workshop for mod sharing
  • Lies of P passes 1 million units sold

Let us know what you think.

[Music by Mr SoundX Studios]