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Sources associated with the manufacture and distribution of Nintendo products gave ForgetTheBox their estimates of the "Bill of Materials" of its upcoming Wii U game console, including that of its swanky-looking controller. The Bill of Materials of the entire package is estimated to be around US $180, despite its interactive screen, the controller's Bill of Materials is no more than US $50. Taking these figures into account the street price of Wii U is estimated by the source, is "no less than $300."
The same sources told ForgetTheBox, "Cutting production costs to maximize profits is Nintendo's main concern with the Wii U. They are cutting costs in the Wii U's hardware to build back confidence in investors. Nintendo wants investors to view Wii U as a less risky proposition." They went on to mention interesting tidbits such as "The cameras in the Wii U controller are an estimated manufacturing cost of $6. They are slightly better quality than the 3DS and DSi cameras. The touch screen has a manufacturing cost estimated at $14."
The sources also touched on the processing horsepower in use, which a recent report, citing sources among game developers, claimed to be less powerful than that of current-generation Xbox 360 and PlayStation 3. "Nintendo chose an economical GPU and CPU that could keep up with the performance of today's current consoles, but keep hardware costs down to maximize profits," said the sources. "Nintendo got a bargain price on the custom GPU and CPU that the Wii U uses. There is a bigger focus on downloadable content, applications, video content, digital distribution, and services to create a stream of revenue. Investors will be ecstatic with the news," they added.
View at TechPowerUp Main Site
The same sources told ForgetTheBox, "Cutting production costs to maximize profits is Nintendo's main concern with the Wii U. They are cutting costs in the Wii U's hardware to build back confidence in investors. Nintendo wants investors to view Wii U as a less risky proposition." They went on to mention interesting tidbits such as "The cameras in the Wii U controller are an estimated manufacturing cost of $6. They are slightly better quality than the 3DS and DSi cameras. The touch screen has a manufacturing cost estimated at $14."
The sources also touched on the processing horsepower in use, which a recent report, citing sources among game developers, claimed to be less powerful than that of current-generation Xbox 360 and PlayStation 3. "Nintendo chose an economical GPU and CPU that could keep up with the performance of today's current consoles, but keep hardware costs down to maximize profits," said the sources. "Nintendo got a bargain price on the custom GPU and CPU that the Wii U uses. There is a bigger focus on downloadable content, applications, video content, digital distribution, and services to create a stream of revenue. Investors will be ecstatic with the news," they added.
View at TechPowerUp Main Site