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Nintendo launched the Nintendo DS for $150 and was (probably) not losing a significant amount of money when selling it at that price. After 6 years of hardware cost reductions, I highly doubt that the DSi’s sale price ($179.99) is anywhere near its manufacturing costs; and I wouldn’t be surprised if the DSi cost as little as $50 or $75 to manufacture. The 3DS probably does cost significantly more to manufacture than the DSi, but that doesn’t mean that Nintendo will be forced to sell it for any more than the DSi is currently selling for.