Fortune Magazine: How Wii Won

Key Points:

- Wii is really popular and is sold out a lot (even at NOA Company store)

- Wii Remote is cheap to make
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: Unkown

- $50 profit per Wii

- $5 Million to develop Wii game vs $20 Million for PS3 game

-Ubisoft says Nintendo is best console maker to work with

- EA says Nintendo is a pioneer

- Wii’s success has done little to convince Microsoft execs that they’rs on the wrong course (Peter Moore: “I love the experience, the price point and Nintendo content of the Wii, but Microsoft provides experiences that Nintendo cannot provide”)

- CEO of SCE America says give credit to Nintendo but points out that Sony have a innovative controller as well, technology doesnt go backwards and the Wii is a re purposed gamecube

- Sony views the world through the eyes of an engineer while Nintendo takes its cues from the outside world (eg. Pikmin from Miyamoto’s garden)

FUTURE
- Nintendo could stick with the current tech for a few years and then introduce a Wii 2.0 with PS3 tech but cheap

- cut $50 of Wii price to compete with future price cuts for MS and Sony

- relationship between Mac/PC - iTune - iPod could be like Wii - DS

- needs more stock, did not expect Wii to be so popular….currently making 1M a month but want 1.5M - 2M but its difficult

QUOTES
We were losing to the TV remote. So we thought what kind of controller can we create that wont make people afraid to touch it? - Miyamoto

We are not competing against Sony or Microsoft. We are battling the indifference of people who have no interest in video games - Iwata

My name is Reggie. I’m about kickin’ ass, I’m about takin’ names, and we’re about makin’ games” - you know who