Wii Autopsy Discovers Manufacturing Cost

[wraggster]

The Wii has been cracked open, its entrails spilled, its blood consumed and its organs dissected, categorised and sold off to the highest bidder. The market value for each is as follows:

Graphics chip: $29.60
CPU: $13.00
DRAM: $7.80
Optical disk drive: $31.00
Power supply: $11.30
Manufacturing cost: $19.50
Cost total: $158.30
Wholesale price: $195.99

If these guys have done their sums right, Nintendo are making just under $40 profit on every Wii sold. At such an early stage of the consoles development, and with sales so healthy, that's good news for anyone at Nintendo that's involved in the counting, or spending, of money.

via kotaku (http://www.kotaku.com/gaming/wii/wii-autopsy-discovers-manufacturing-cost-221736.php)

[steve-b]

that is a smart move by Nintendo. The lower spec and thus cheaper hardware means they don't really need to 'win' the next-gen console war to turn a profit. I'm sure PS3 and Xbox 360 sell at a loss so they really need to get lots of consoles out there to turn a profit.

[shadowprophet]

Still. I hope nintendo wins this next gen.

on the flip side and completely off topic. who here besides me has lost all faith in the psp??

*sigh. final fantasy crsis core was supposed to be its saviour, But they have made us wait so long. I really dont even care if the psp dies anymore:(

Still though. The homebrew scene will make sure we havnt seen the last of the psp for a long long time to come :)

[steve-b]

it feels like Sony has forgotten about its baby station. maybe once the buzz wears off PS3 we will see something nice happen to the PSP. It will always have a special place in heart :P

[shadowprophet]

it feels like Sony has forgotten about its baby station. maybe once the buzz wears off PS3 we will see something nice happen to the PSP. It will always have a special place in heart :P

I used to be the most die hard psp fan there is..
Ive just become dissenchanted with the little device.

Still, I would be lieing if i didnt add that it was because ive been playing the wii:o

Oh and to add to the list of cost on the wii, people forgot to add in material costs for the console caseing and wii-mote and packaging, and development costs for wii sports. I realize these are easy to overlook, however those didnt just apear out of thin air for nintendo :P

I would say there profit per console is something more along the lines of 15- 25 dollars if that :)

[Jonesyxxiv]

Oh and to add to the list of cost on the wii, people forgot to add in material costs for the console caseing and wii-mote and packaging, and development costs for wii sports. I realize these are easy to overlook, however those didnt just apear out of thin air for nintendo :P
Also cost of labor.

[Strumtoo]

they wont make much money on the consoles, keep them as cheap as they can so they get into as many households as possible, then they will forever make money on the games for the life of the console..

[quzar]

Um.... yea, whoever made this is an idiot for the reasons shadow listed. Although, I'm sure that nintendo got better prices than cited for 'wholesale prices' but i doubt they make more than a very very small percent of profit off each console, either that or they lose a small amount. I would say no more than 5% in either direction (+/- ~10$).

[shadowprophet]

Um.... yea, whoever made this is an idiot for the reasons shadow listed. Although, I'm sure that nintendo got better prices than cited for 'wholesale prices' but i doubt they make more than a very very small percent of profit off each console, either that or they lose a small amount. I would say no more than 5% in either direction (+/- ~10$).


Theres the motion sensor bar and the nunchuck.
if anything nintendo is lucky to break even on each console sold :o

[Uruz 6]

that is a smart move by Nintendo. The lower spec and thus cheaper hardware means they don't really need to 'win' the next-gen console war to turn a profit. I'm sure PS3 and Xbox 360 sell at a loss so they really need to get lots of consoles out there to turn a profit.

If microsoft and sony decided to do the same we would be stuck with not-so-good-machines - sure it's cost-effective and the lower price IS good but really I'm willing to pay more (the 360 ain't that pricy) and enjoy something "stunning" rather than "innovative"; besides these things, in my opinion, gets old quickly: what will happen when the ps3 and 360's games will keep getting better and Wii's will have reached the limit?:confused:

Guess nintendo just needed some quick cash:cool:

[shadowprophet]

If microsoft and sony decided to do the same we would be stuck with not-so-good-machines - sure it's cost-effective and the lower price IS good but really I'm willing to pay more (the 360 ain't that pricy) and enjoy something "stunning" rather than "innovative"; besides these things, in my opinion, gets old quickly: what will happen when the ps3 and 360's games will keep getting better and Wii's will have reached the limit?:confused:

Guess nintendo just needed some quick cash:cool:

Case in point, the x-box games kept getting more visualy stunnign while the ps2 continued to dominate it across the globe. its not just a fluke ive noticed. even though there isnt much logic in it. its not entirely uncommon that the weakest console on the market does win the crown. examples. psx and saturn. saturn was more powerful. but what happened?

ps2 and x-box- what happened?

It woudlnt suprize me one bit. that this time next year people will be saying the same thing about the wii, and yet it will continue to dominate the market.:cool:

count on it :)

This nintendo launch has more umph behind it then any previous nintendo launch ever. nintendo is well on there way to reclaiming there iron fist rule. and i cant wait :)

~ let the cards fly where they may~

[quzar]

If microsoft and sony decided to do the same we would be stuck with not-so-good-machines - sure it's cost-effective and the lower price IS good but really I'm willing to pay more (the 360 ain't that pricy) and enjoy something "stunning" rather than "innovative"; besides these things, in my opinion, gets old quickly: what will happen when the ps3 and 360's games will keep getting better and Wii's will have reached the limit?:confused:

Guess nintendo just needed some quick cash:cool:

As stated millions of times, nintendo actually has a MUCH higher net profit percentage every year compared to SCEA and microsoft's xbox divisions.

Also, are you seriously saying that the graphics on the 360 'stun' you? To me it looks like late xbox games where everything is made extra shiny.

[MattZani]

i wonder how much the Ps3 GPU would cost, also it would be cool if you could adapt the wii GPU for a PC, as thats a lot of GPU Quality for £20!

[shadowprophet]

i wonder how much the Ps3 GPU would cost, also it would be cool if you could adapt the wii GPU for a PC, as thats a lot of GPU Quality for £20!

But i believe some hardware modding wizzard could do this, provided he had the knowlage to code a driver for it...

[Gizmo356]

Nintendo plays it smart, they dont concentrate on the best graphix but on the quality of the games. O yeah and there always the cheapest to buy:D
.

[Uruz 6]

Also, are you seriously saying that the graphics on the 360 'stun' you?

That's what I said - that's my opinion you know.
So what? got a problem with that?