Friday, December 15th 2006

Nintendo Wii Costs About $160 to Manufacture?

Dec 15th, 2006 15:39 Discuss (16 Comments)

According to a report by the Japanese Toyo Economics TK newspaper, the new Wii console from Nintendo costs just about $160 to manufacture. This leads to conclusion that Nintendo may be earning money from selling Wii game console. The news-paper states that ATI-developed code-named Hollywood graphics processor costs $29.6, IBM's custom Broadway microprocessor takes $13 to be delivered to Nintendo, $31 is paid for Matsushita-made optical disc drive, memory array costs $7.80 and power supply unit stands at $11.30. Nintendo reportedly pays Foxconn Electronics $19.50 for Wii assembly. Nintendo set the recommended retail price of ¥25 000 (about $211) in Japan, $249 in the U.S. and €249 ($325) in Europe, which means that the actual price of the console may exceed the bill-of-materials cost by up to two times. So far Nintendo shipped over 1.3 million of its Wii game consoles worldwide.

Source: X-bit

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16 Comments on Nintendo Wii Costs About $160 to Manufacture?

L|NK|N

Theyre a great company IMHO and deserve to make some profit. Good games, good innovation, and mostly lower prices. :toast: to Nintendo.

DaMulta

My stars went supernova

That's like 65 million at 50 bucks a pop in profits!

overcast

I just wish they had put more "oomf" into this system, could you imagine a powerful Wii? It would totally dominate the entire market.

Jimmy 2004

I think those estimates could be a little conservative (unlike the ones for the PS3 which were a bit too high) but I still reckon they're making a profit. I wonder what they estimate the components in the controller, the sensor bar, the wireless, the bluetooth and casing to cost. Plus they have the huge development costs, but it still looks like the Wii could be set to make the largest profit overall if its popularity continues.

Seany1212

its nice because they've stuck to making cheap to manufacture and an effective design and they're finally pulling through :toast:

overcast

Jimmy 2004I think those estimates could be a little conservative (unlike the ones for the PS3 which were a bit too high) but I still reckon they're making a profit. I wonder what they estimate the components in the controller, the sensor bar, the wireless, the bluetooth and casing to cost. Plus they have the huge development costs, but it still looks like the Wii could be set to make the largest profit overall if its popularity continues.

I would think Nintendo's development costs for the Wii , were a VERY small fraction of Sony's. and even Microsoft's for that matter.

overcast

I just want Nintendo exclusives, I don't care about all of the other "highend" games. I just want Mario's and lots of them. I'm getting tired of the 1 mario per generation trend.

xman2007

Nintendo imo are a good company and still going strong after being in the console sector for years, how many of us here remember some our first gaming consoles experience with nintendo ? I for one do and would be sad to see them out of the picture, its just a shame that these days a lot of people are blinded by the hype of raw power and true to life graphics in games over fun, enjoyment and gameplay, although graphics have to move on you also need all the aforementioned to truly make a good gaming experience.

:rockout: nintendo

Jimmy 2004

Original Game Boy ftw... they did so much with that portable console.

#10

Track

Hahah, i knew it!

Wii = Xbox, except the Wii costs 250$!!

#11

WarEagleAU

Bird of Prey

Well at least they arent lying about how much it costs them to make their systems and the paltry 90 dollar a console profit is hardly anything to scoff at. Im glad they are making a profit, after all, Nintendo revolutionized the gaming console market. FTW!

-The Eagle

#12

jocksteeluk

add the cost of the controler recall and possible lawsuit and they should still be even

#13

overcast

jocksteelukadd the cost of the controler recall and possible lawsuit and they should still be even

Yeh those controllers are easily costing Nintendo $90 to replace :rolleyes:

#14

JC316

Knows what makes you tick

overcastI just wish they had put more "oomf" into this system, could you imagine a powerful Wii? It would totally dominate the entire market.

With the profits they are making now, they might just be able to make one with more power. Another thing about the power of PS3 and xbox 360, they make other things that supplement the old income, nintendo dosen't.

#15

overcast

JC316With the profits they are making now, they might just be able to make one with more power. Another thing about the power of PS3 and xbox 360, they make other things that supplement the old income, nintendo dosen't.

Uhh...gameboy?

#16

Canuto

I'm just pissed that in the US people pay 250$ and here we pay 250€ which is 325$ :mad:

Other than that go Nintendo and when prices drop it's a wii for me :)

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Nintendo Wii Costs About $160 to Manufacture?

16 Comments on Nintendo Wii Costs About $160 to Manufacture?

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