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Soundwave on 08 August 2013
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Max King of the Wild said:
Soundwave said:
Max King of the Wild said:
Soundwave said:
They likely aren't factoring in currency flucuations though, so while the Wii U may still take a "loss" to manufacture, the fact is Nintendo is saving $70 per system at a $300-$350 price per unit due to the yen depreciation since last November.

That's just a fact.


Why are you factoring in MSRP into your calculations? ...or do yo9u think Nintendo gets all $350?


Even if it costs Nintendo lets say $380 a unit to make a Wii U (which is somewhat ridiculous IMO but lets go with that number), the weakening yen still means they save $70 now on units sold in North America now over last November. That's just how it goes.



Im confused as to where you pulled 380 from...

Secondly, these Wii U's that are being sold were probably produced months ago anyway. Or do you think Nintendo expected 5.5mil at the end of march and produced only 3mil before sales slumped and Nintendo were like "Okay guys, lets only make as we sell"

And finally, Nintendo doesn't get anywhere near $380. Probably half of that. If they cut anything on production its probably closer to $30. But again, laws of diminishing returns say it probably costs more now to produce then when they launched


I really, really, really, reaaaaaaaally doubt it costs more today to produce than when it launched.

DDR3 RAM, something that's likely the equivalent of a 450 GFLOP GPU, three cheap ass CPU cores, a modified Blu-Ray drive, and a low resolution touch panel with a $3 battery pack aren't components that are magically going to increase in cost.

There's nothing exotic or crazy in the Wii U design other than maybe the 32MB eDRAM.

Nintendo tends not to overproduce inventory early in the cycle anyway, this is why the original Wii was undersupplied, even though Nintendo was actually manufacturing quite a few, they were afraid to get stuck with inventory.