Most of the time manufacturing cost estimates are for the console alone without controllers, cables or pack-ins ...
As a guess I would say that the total cost to manufacture the Wii (without Wii Sports) and to ship it to North America was probably slightly higher than $200 so they decided to include Wii Sports and sell the system for $250. Wii Sports has easily covered its development costs and the Wii is probably less expensive to manufacture now so they could probably sell it for $200 if they wanted to; personally, I expect Nintendo to pack-in Wii Fit with the system and maintain the price until E3 or TGS in 2008 (When it will become Wii + Wii Sports + Wii Fit for $200)







