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JEMC said:
HappySqurriel said:
JEMC said:

Yeah, stores make more profit from games.

But we still ignore if Nintendo is making a profit from the basic model or not, and if there is a profit, they won't tell us how much it is. And there are also the packaging and shipping costs that will be different from WiiU to PS4 as the consoles/boxes won't have the same size or weight.

So once all is said and done, we may end with a rough guess of the cost of the materials, but there are many other costs that we will never know.


I think it is fair to assume that Nintendo isn't losing a substantial amount of money on the sale of their system, but I doubt there will be a massive per-unit profit on the sale of the hardware initially. After they pay for the physical components and licensing of hardware, software and services licensing, assembly, packaging & accessories, and shipping I would expect the Wii U costs (roughly) what they're selling it for. I really wouldn't be surprised if services like TVii and Miiverse (and most of the OS software) involve third party systems that are licensed per unit sold.

Indeed.

I think that Nintendo may is selling the Basic model for very little profit, but with the Premium they will make some money.

Do you really think that they are using 3rd party software for their OS/Miiverse? Besides TVii (which relies on 3rd party content and is not available in every region), I think that Nintendo (as every Japanese Co.) tries to rely on its own stuff as much as it can, and I don't know why would they need help with the OS give n the good work they have done with the Wii and DS/3DS.

I don't know the inner workings on what Nintendo has produced, but I have seen many companies out-source the development of similar software and services because they're not part of their core business.