Wii U Cost Of Manufacturing Detailed

[Squilliam]

Mr Khan said:

Squilliam said:
IBM want to be paid.
AMD want to be paid.
Blu Ray association or whomever they license off want to get paid.
Networking technology companies want to get paid.
Various other royalties also need to be paid.

Bottom line: Add about $30-50 to that estimated costing.

Proprietary disc format, with what amounts likely to a one-time payment to some company (likely Toshiba, if history serves us) to develop a Blu-Ray knockoff similar to Wii's not-quite-DVDs

History also serves us with examples like the typical industry practice of licensing on a per unit basis. The reason why console companies report the number of consoles sold is for royalty purposes.