One Wii costs Nintendo $158 to make

ramsaur

ramsaur

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The Wii (just the console) only costs $158 to make

Posted by Curtis on December 14th, 2006
Japanese economic site, Toyokeizai, broke down the Wii components by price and discovered that it apparently, only costs Nintendo about $158 to make a Wii. That’s not including the controllers though. Here’s the breakdown of the components as translated from Nintendo-Inside:

Graphic tip/chip 29.60
CPU 13.00
DRAM 7.80
Optical disk drive 31.00
Power supply 11.30
Production cost 19.50 (with the half price of PS3 editorial staff calculation)
Cost total 158.30
Wholesale price 195.99 (with 8 applying of price calculation)
 
The manufacturing is just one aspect.
But Nintendo have to pay for development, testing, patents, support, warranty, advertising etc., too and so has the consumer.
 
I don't think it costs nearly that much to make a Wii. Nintendo is not paying that much. It's common business practice to AT LEAST double one's money at the wholesale bracket. They're getting a deal somewhere, and I sincerely think they are not only making a roughly 20% profit. That would be bad business. Plus, they do have to manufacture the controller and one is included with the console. Also, like MarcusX said, manufacturing is just one aspect. They probably put at least as much money into marketing the Wii as they did in production of it. You know how much it costs for airtime these days?
 
I hear almost all console manufacturers lose money on the consoles. The profit is with game sales and licensing.
 
xbox and playstation both lose a fortune on their hardware, ALL the profit is in the licensing.
 
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