"We're making money from day one" - Nintendo exec // GamesIndustry.biz

Nintendo is making money on the Wii from launch day. They are profiting from each system sold. Unlike The PS3 which is losing Sony money, even at the $600 mark - and the Xbox 360, even a year after launch, is still being sold for less than it costs to make. This is common for video game systems. It's called a "loss leader". They lose money on the system, because they know you are going to buy games. And games are uber cheap to make. Like $2 a distitle - counting packaging and everything. So those "$19.95 bargain titles" aren't really bargains.