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

[superchunk]

Nope.

It's like new cars vs 3 year old cars.

If you buy a new car you will lose what, 30%+ of its value in three years, easy.
If you buy a 3yr old car you will lost probably only 15% max of its value in the next three years.

The older the tech, the slower its decrease cost curve. Wii is easily reducing costs at probably 1/4the the rate PS360. That combined with the huge difference in Yen to Dollar/Euro/Pound etc value shift makes Wii even less profitable.

Plus, its not just the cost of the actual raw material. There's wages for Nintendo people, advertising, development costs on games, (why Wii Sports does not cost $1 to make, years of R&D went into that game combined with motion controls etc).

Wii was estimated to cost to produce about $200, then add in other costs and your looking at more like $220 easy. Then as TheSource said, N sells to retailers for probably about $235 or so.

Now, its probably more like $140 to make plus the loss of revenue due to dollar deflation you're moving back up to $160 while other items remain constant. So, about $190 in total costs and a selling price of $235 to retailers. So, yeah they are making $20-30 more per unit MAX, but that won't justify a price reduction when they are still outselling the competition 70-80%.

New color and games will either cause a major boost this holiday through March or Wii price cut in April 2010.