Wii U Cost Of Manufacturing Detailed

[Squilliam]

Mr Khan said:

Squilliam said:

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.

I figured the point of proprietary formatting was so that you didn't have to pay royalties on a per unit basis, otherwise why bother not getting the mainstream technology?

You still need to pay for the development of the physical ability to read and recreate the discs so long as the patents apply. The advantage is that instead of paying $9.75 or thereabouts they may pay $5 for the specific licenses they need and it enables them to create discs which cannot be burnt on their own players. I.E perhaps slightly lower costs, perhaps not but the main advantage is that you cannot burn a Wii U disc in a Blu Ray burner and have it play no matter how you try to hack the system.