LordTheNightKnight said:
Joelcool7 said:
So the leak said 70-100$ as I recall and you say it was off by 40$ when infact it was off 58$ that would mean the Wii cost 158$ (not 40$ more) to manufacture. Theirs no way the controller cost another 100$. No matter which way you slice it Nintendo most definatly over charged to turn a profit.
I'm not getting upset at Nintendo or argueing they should have charged less. Because honestly given their position it was a very reasonable decision. Keep in mind Isuppli also said the GBA:Micro only cost 44$ to make and Nintendo sold the device for a hundred.
Also ISuppli's numbers are based on regular cost. How much it would cost you or me to build. Factor in Nintendo's massive quantities and special deals these prices are probably alot smaller. So EA and Sega's estimate of 75$-100$ was probably pretty close to reality. Keep in mind Nintendo's Reggie stated the GameCube was still profitable at 99$ the Wii's hardware (Without controller) couldn't have been to much more then the GCN was. Thats just basic logic.
I'd say Nintendo probably spent no more then 150$ on each Wii, infact as I said I'm sure Nintendo would have broken even or even turned a profit at 150$. Today the cost of the Wii is probably under a hundred bucks and it still sells for 200$
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What? I did NOT claim the controller add that much. In case you forgot, the Wii in most regions also came with a game (let's not get into a "tech demo" argument, as sales in Japan showed people like the game on its own). Plus there was the R&D costs for the system that had to be made up.
So Nintendo did not overcharge. They merely charged just enough to make sure they made money off the system.
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Your right Nintendo spent around 105-mill on R&D for the Wii each year. But since then Nintendo has spent over 350-mill on R&D.
As I said their were reasons for the hardware being priced so high. I named a few and R&D is another. I was simply saying their priced it to turn a profit. Microsoft who lost money on every unit sold still ended up being profitable only two years into its life span (Including R&D), are you saying Nintendo which sold for a profit needed to price the console at 250$ to break even?
Of course Nintendo was making a crap load on each unit, they didn't need to sell many units to make up the R&D costs etc...etc...
Again I am not saying Nintendo did anything wrong. Simply saying they turned a healthy profit off each unit sold. Which Reggie himself has said. Whether the console cost 70-150$ even if it cost 200$ Nintendo still over priced it to turn a profit.
P.S- Any smart company is going to price something higher then it costs them to make so that they turn a profit.
