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Forums - Nintendo - Who thinks the wii only costs a 100$ to make?

In a word, no.



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Godot said:
TWRoO said:

The Wii was not made from expensive chips in the first place, the cost reduction on them is minimal.

In fact, due to the bad exchange rate, American and European Wiis are probably making Nintendo LESS profit now than they did at launch.

In fact, if you look at the fiscal reports... you can see they don't make anywhere near that, and in fact the most optimistic estimate would be that they made $50 per console, but it more likely averages out to $30-40.

IF the exchange rate had remained similar to what it was at launch, then the Wii could probably be making $80-90 average per console.... but it certainly would't make over $100

You seriously think that the processor, RAM, 512 mb of flash memory, old ATI graphic card don't cost next to nothing now?


he didn't say anything of the sort...

Godot said:
TWRoO said:

The Wii was not made from expensive chips in the first place, the cost reduction on them is minimal.

In fact, due to the bad exchange rate, American and European Wiis are probably making Nintendo LESS profit now than they did at launch.

In fact, if you look at the fiscal reports... you can see they don't make anywhere near that, and in fact the most optimistic estimate would be that they made $50 per console, but it more likely averages out to $30-40.

IF the exchange rate had remained similar to what it was at launch, then the Wii could probably be making $80-90 average per console.... but it certainly would't make over $100

You seriously think that the processor, RAM, 512 mb of flash memory, old ATI graphic card don't cost next to nothing now?

Well then Nintendo's fiscal reports must be very wrong then.

IF the Wii was making $100 per console, then it must be somehow making half of the entire profit Nintendo makes.... do you really think that Wii hardware makes half of Nintendo's profit, leaving the rest for DS hardware, Wii software and DS software.

Obviously I can't be certain, but in terms of profits I would naturally assume it to go DS software > Wii Software > Wii hardware > DS hardware.

Although with the Wii selling poorer this last quarter the DS hardware probably out-profited the Wii hardware. (even though per unit I think it is Wii > DS probably by a factor of 2:1... I suspect Wii makes about $35 per unit and DSlite about $20)

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If the person in the OP is correct, and the Wii in fact makes $150 profit per unit... then that would be over 2/3rds of the entire Nintendo profits.

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Hell I don't think even the PS2 costs much less than $100 to make (probably $70-80) never mind the Wii.
(although bare in mind everything is included in these figures, so the cost of packaging and shipping the unit and such)



Faxanadu said:
The controllers are probably what costs the most.

Plus, did the cost calculation include 50 bucks for Wii Sports?

wii sports is a demo disc, its costs pennys



I think the percentage drop in costs for Nintendo is probably something around 30% from launch (just a guesstimate) which would (if exchange rates were equal and we assume manufacturing cost of $200 at launch) give them a profit of $110.

Of course the exchange rate is killing them, just like every other company in Japan. The fact that they haven't dropped the price is meaning they still can reap large profits though.



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the wii was build with already inexpensive tech that's not going to be getting much cheaper very fast.

 

EDIT: @ TWRoO, if thats the case with the wii only making $35 profit per console, than all you hopefuls can throw your price drop dreams out the window... at least till the exchange rates get a hell of a lot better in nintendo's favor.



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you can view a few screenshots from the game in my photo album here; http://www.vgchartz.com/photos/album.php?album=2312

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Im confused here:

Some people claim that the GC never lost money @ $100

Other people claim the Wii cost more than $100

The Wii = shrunk GC hardware.



Tease.

Squilliam said:
Im confused here:

Some people claim that the GC never lost money @ $100

Other people claim the Wii cost more than $100

The Wii = shrunk GC hardware.

if you'll go back to twroo's posts, you'll find the people claiming the wii only costs 100$ don't know what the hell they are taliing about.



come try out the computer game i've been working on for my high school senior project, titled sling ball. http://vgchartz.com/forum/thread.php?id=76669&page=1

you can view a few screenshots from the game in my photo album here; http://www.vgchartz.com/photos/album.php?album=2312

yes, this is vonboy's alt account. i can't log into my original account, and i'm not sure if i will ever be able to.

Proud Member of the Official Yoshi Fan Club!.

I know nothing of hardware manufacturing so perhaps someone else can shed light on this but my understanding was that part of the reason the Wii's components were relatively more expensive than what might be expected (given that it is derived from establised GC hardware) was because they were designed to run cooler and more efficiently than the GC parts. 

I remember reading somewhere that Nintendo is supposed to have spent a significant amount of R+D on achieving this design goal, so it may not just be a matter of costing the GC parts and assuming that because the Wii is not significantly more powerful than the GC that it's component's cost approximately the same amount to manufacture.



vonboysp said:
Squilliam said:
Im confused here:

Some people claim that the GC never lost money @ $100

Other people claim the Wii cost more than $100

The Wii = shrunk GC hardware.

if you'll go back to twroo's posts, you'll find the people claiming the wii only costs 100$ don't know what the hell they are taliing about.

Does that mean the people who claim the GC was profitable at $100 are the same?



Tease.