@TWRoO.
The Wii isn't close to the wall, the wall is far far lower than that. Its just that cost reductions are logarithmic and the Wii started further along the curve (but nowhere near the asymptote).
By that logic the PS2 would never have been able to get to as lower price as it has because it would have hit 'the wall' at some point.
I think it would be a fair guess that the Wii probably costs less that $150 to manufacture now given they were profiting at launch and have had three years.








