HappySqurriel on 08 June 2011
| greenmedic88 said: I think it is possible for Nintendo to set an MSRP below $300 while still remaining about even or slightly profitable (negligible either way). After some second thoughts about the controller in particular, I think they will be able to produce them for much less than I had originally assumed on the basis that it is not a separate, independent game playing device, but essentially a satellite that pipes a video signal and player input from the base unit itself (the console box). So, no CPU, no GPU, no significant amount of RAM, maybe some NAND flash memory to hold player settings and profiles, individual user game data, characters, etc and a signal processor for transmitting the A/V signal and player input data. The 6" panels themselves may well be $20 parts (not including the touch interface), possible even less. It appears they use resistive touchscreens as they are compatible with the same plastic stylus used by the DS line which are less expensive than the capacitive touchscreens used in smart phones, iPads, and the PSV. The internals (to include the motion sensing components) are likely similar to those currently used in the Wii Remote Plus, which probably cost less than $10 based upon the sub $10 BOM of the original Wii Remote back in 2006 while still factoring in for the additional gyro and circuitry of the "Motion Plus" component. While Nintendo may charge up to $100 per controller ($80 seems a bit more consumer friendly; the original cost of the Wii Remote, Nunchuk and Motion Plus) it may actually be inexpensive enough to produce that they will still make healthy margins on every unit sold. The console itself appears to based around an updated version of the IBM CPU used in the Xbox 360 (faster clock speed and possibly an extra core) which is currently a very inexpensive chip and the GPU is allegedly based upon ATI's R700 family, possible the RV770 (used in the HD4870 from 2008) leaving the 1GB VRAM and 512MB of XDR RAM as other key components in the BOM. The optical drive is presumably a proprietary format (no BD or DVD license fees) using a high density format (to hold BD comparable data storage) which would make it the other core component to make up a sizable percentage of the overal production cost. Currently, internal BD drives can be found at retail for under $100 ($79). Retail, not OEM volume price while still including format licensing fees. The proprietary drive could potentially be a $30 part (OEM part, volume), very possibly even less, leaving the PSU/AC adapter (not internal due to dimensions of the console) one of the remaining core components likely to cost over $10 along with the casing (small console, casing should be no more expensive to produce than an external optical drive of similar size). There was no mention of internal HDD in keeping with previous rumors Project Cafe had no internal bay, and given the dimensions of Wii U (similar to the Wii), this seems all but confirmed. HDD is still one of the more expensive components in both the PS3 and the Xbox 360. Admittedly, there is a HUGE amount of guesswork here, but it's not unreasonable to see how the productions costs on the Wii U could be significantly lower that what some are assuming it will be. I'm pretty sure Nintendo could sell the Wii U at $299 while retaining profitability on each unit. At $249, based on the very limited breakdown I've done in my head, I could see them breaking even at best. One thing I am certain of is that Nintendo will not break form by selling their new hardware at a loss. By waiting several years to introduce 7th gen ("7.5" more accurately as they will all be improved/customized versions of older technology) core components into their hardware necessary for 1920x1080 native render output, the price on these matured components should not carry any sort of premium allowing Nintendo to sell units profitably at the same consumer friendly prices expected of them. |
I've actually been thinking something very similar in regards to the cost of the controller ...
I constantly seen no-name lcd touch screen color ebook readers for less than $100 (usually with a 7 inch display and a resolution of 800x480) and these often included the more expensive capacitive touchscreens along with components we wound`t expect the tablet controller to have (CPU, memory, sd-card readers, etc.). While I wouldn`t expect Nintendo to sell it for $40, I wouldn`t be surprised if Nintendo could bring this controller to market and sell it at retail for $40 while still turning a profit; and I would expect the price of it to be (close to) $60 to $75
