| h2ohno said: The Wii cost $158 to manufacture, not including wiimotes and wii sports. Add r and d costs and marketing costs and $250 looks fine when they also want to make a relatively decent profit. https://www.engadget.com/2006/12/15/wii-manufacturing-costs-ring-up-to-just-158/ |
Never take such articles as truth. The manufacturing costs of the wii would be far less than this. R&D is the huge expense. Nintendo's financial report of a few years ago showed they were making huge profits on wii hardware even at end of life when the console was selling at huge discounts. There's not much in a wii of value to ever merit $158 manufacturing costs back then and then there is all the transport, wholesale profit, retail profit, tax, duties and other stuff on top like R&D. The likely manufacturing cost was probably more like a third of that.
A few years ago the factory door price of dvd players in China was $8-12 with their own profit on per unit and boxed. These would end at retail in the UK for £20-30. Yet using the analysis of so called costing experts just the Mediatek SOC chip itself would be $12 before you even start with the rest of the dvd player. I guess they would probably value it as $40-60 overall so pretty much 5x its actual cost for that example.
