Who thinks the wii only costs a 100$ to make?

[TWRoO]

Godot said:

TWRoO said:

The Wii was not made from expensive chips in the first place, the cost reduction on them is minimal.

In fact, due to the bad exchange rate, American and European Wiis are probably making Nintendo LESS profit now than they did at launch.

In fact, if you look at the fiscal reports... you can see they don't make anywhere near that, and in fact the most optimistic estimate would be that they made $50 per console, but it more likely averages out to $30-40.

IF the exchange rate had remained similar to what it was at launch, then the Wii could probably be making $80-90 average per console.... but it certainly would't make over $100

You seriously think that the processor, RAM, 512 mb of flash memory, old ATI graphic card don't cost next to nothing now?

Well then Nintendo's fiscal reports must be very wrong then.

IF the Wii was making $100 per console, then it must be somehow making half of the entire profit Nintendo makes.... do you really think that Wii hardware makes half of Nintendo's profit, leaving the rest for DS hardware, Wii software and DS software.

Obviously I can't be certain, but in terms of profits I would naturally assume it to go DS software > Wii Software > Wii hardware > DS hardware.

Although with the Wii selling poorer this last quarter the DS hardware probably out-profited the Wii hardware. (even though per unit I think it is Wii > DS probably by a factor of 2:1... I suspect Wii makes about $35 per unit and DSlite about $20)

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If the person in the OP is correct, and the Wii in fact makes $150 profit per unit... then that would be over 2/3rds of the entire Nintendo profits.

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Hell I don't think even the PS2 costs much less than $100 to make (probably $70-80) never mind the Wii.
(although bare in mind everything is included in these figures, so the cost of packaging and shipping the unit and such)