CNN Money Wii U Parts Price Estimate

[Mythmaker1]

dsgrue3 said:

pokoko said:
I'm kind of confused about how Nintendo is losing money per console, though.  I don't think they'd tie R&D costs to manufacturing on a per-console basis.  Seems like that would be a departmental cost applied to the entire life-cycle.  I assumed that things like shipping, manufacturing, and exchange rates would contribute to the loss on an individual console.

I agree with all of this. The assessment seems off, unless shipping, manufacturing, and exchange rates are killing the price. Nintendo originally said it needed to sell 1 game to make a profit, but redacted that later on. So it's safe to assume it's at least 2 games to crack a profit. I just can't see these additional costs from just making/moving the units. We're talking an additional $100+ per unit from their analysis of parts just making and moving them.

There's also retail cut. Afterall, Nintendo might be selling the console at a loss, but the retailers certainly aren't.