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production cost of a Wii has fallen more than 45% since 2006

In 2006, the cost of production of tha wii was 158 $,
today 80 dollars.

If they fall the price of the wii of 80 dollars
= 199 - 80 = 119 dollars

yes, they still make profit.

buy a wii for 250 dollars or 200 dollars = epic fail