RolStoppable said:
Intrinsic said:
Trust me when I tell you that all those thing you mentioned (especially in bulk) doesn't cost nearly as much as most seem to think they do.
A japanese company tore down the NS and gave their own estimate of everything involved in making the NS and they arrived at $257.
But that company isn't even taking into account whatever kinda deals nintendo may have made for the parts or components used. Eg, they have the joycons priced at $45 on tehir own to make. Not a chance in hell thats accurate when like I said an entire fully working tablet complete with cameras and sensors and processors and screen costs around $50 at RETAIL. So can you imagine how much it cost to make that?
HDMI cord? Cents en masse, dock? Have you seen inside the dock? Do not let its size fool you.
Estimates have it pegged at $250.... I am simply saying I am sure it costs even less than that. Nintendo could have sold the NS at $250 and broke even. But Nintendo will be Nintendo..... and don't even get me started on the prices of their accessories.
Contrary to what nintendo or some of its fans would have you (or most people) believe, we aren't living in a tech vacuum. You wanna have an idea of how much the NS costs? just look around at all the tech already out there.
And lets even assume you are a complete failure of a company and you will not make a dime from sales of software and accessories so you must make consumers pay for your marketing; and we add $10 marketing subcharge to each console sold.... with 10M sales thats $100M. and that still doesn't take the console up to $299. Nintendo just priced the NS as they did cause as they always do? they knew they would get away with it.
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Such estimates are notorious for lowballing the real costs. For example, in 2011 the 3DS was estimated to cost ~$120 to manufacture. When Nintendo told investors that the price cut to $170 would result in the system being sold at a loss, you'd think that can't be true based on the estimates. But Nintendo's financials made it clear who has an idea of what they are talking about.
If estimates peg Switch at $250, then you can be sure that the real costs are higher than that.
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What we should remember is component cost is just one part of the full cost of a console and even if that fanciful $120 was close to true, parts need assembly, packaging, shipping etc that add to the bottom line, so that $170 figure might not preclude such a figure by as much as we think it would.
