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Wii costs $158 to manufacture (Aside from controllers)

Danthrax

Batteries the CRISIS!
tapedeck said:
ITPRINTSWIIa0f.gif

:lol Awesome.
 
It seems about right to me. What speed is the drive? I heard it wasn't even 8x which is damn cheap and slow. I am shocked that the graphics chip costs $29 as well considering all it is is a die shrink which means the chip should be even cheaper. If the Wii really costs this much then Nintendo must have lost a LOT of money on the GC hardware. Otherwise they are overestimating on just about every component other than the wireless, bluetooth, and flash stuff.
 

itsme

Banned
aeolist said:
GAF doesn't like them though, and as we all know the GAF consensus is the final arbiter of a console's success.
Just like DS? I don't remember much love from GAF on the early days of DS.
 

Gahiggidy

My aunt & uncle run a Mom & Pop store, "The Gamecube Hut", and sold 80k WiiU within minutes of opening.
DefectiveReject said:
Graphic chip 29.60
CPU 13.00
DRAM 7.80
Optical disk drive 31.00
Power supply 11.30
Manufacturing cost 19.50 (The editorial department calculates PS3 at half price. )
Cost total 158.30
Wholesale price 195.99 (Calculate by eight multiplications of the fixed price. )

DRAM code name is "VEGAS"
LSI Codename is "NAPA"??
Accoding to iSupply, the Xbox 360's drive costs $21 (at time of luanch). Of course, that mostly likely includes the DVD royalties to play movies. (Anyone know that cost??)



Anyways, if Wii was a tray loaded system... then Nintendo could've afforded to DOUBLE the processor power. jeesh!
 

Arsenal

Member
Sega said:
Have you used it? It's self loading, and it can take both normal sized discs, AND the tiny gamecube discs. It can take cube discs, even if you don't put it directly in the center too. I think the drive is pretty special. Plus, they probably didn't go with the very cheapest they could find. Nintendo tends to build strong hardware.

I thought that they axed the DVD playback to save costs on it?
 
Gahiggidy said:
Accoding to iSupply, the Xbox 360's drive costs $21 (at time of luanch). Of course, that mostly likely includes the DVD royalties to play movies. (Anyone know that cost??)



Anyways, if Wii was a tray loaded system... then Nintendo could've afforded to DOUBLE the processor power. jeesh!
maybe it costs more because it is an optical drive that requires it to read a propietary disc as well as DL DVDs?
 

Cheerilee

Member
Gahiggidy said:
Anyways, if Wii was a tray loaded system... then Nintendo could've afforded to DOUBLE the processor power. jeesh!
Yes, but then where would Nintendo have found the $200 million to design this nearly-next-gen system?
 

jarrod

Banned
ruby_onix said:
29.60
13.00
07.80
31.00
11.30
+19.50
--------
112.20

Cost total 158.30
Wholesale price 195.99

I'd assume the WiFi and 512MB fit somewhere in the $46.10 between the totals of the itemized list and the "cost total". Other small things probably fall into the twice-as-much-as-a-PS3 "manufacturing cost".

IMO, this fits with what Miyamoto was saying about how they designed the Wii to be a sub-$100 console, but then they splurged and added the
(backlit!)
slot-loading drive, the WiFi, and the flash memory, which would bring it up to $160. And then rather than being even moderately agressive, they decided to charge $200 for it. And then retail "twisted the arms" of NOA and NOE, convincing them to add Wiisports and jack the price up to $250.

And I thought we already found out who makes the accellerometers for the Wii, and they retail for $5. Otherwise the Wiimote would be cheaper than a Wavebird.
Ack! I didn't even think to add up the component prices. :/

So Nintendo makes about $40 per unit? Nice, way better than the $20 loss on GameCubes at launch and even better than the $30 made off each DS at launch. :)
 

Stele

Holds a little red book
Adagio said:
Not everyone feels like they got their money's worth, perhaps?
$158 is just their cost of manufacturing. You're also paying for their Sales, General, Administration, Warranty Reserves and R&D costs. After all that, I'd be surprised as hell if Nintendo is getting more than a 10% margin on Wii.
 
Does anyone have a component list for the Gamecube when it was launched? I am just trying to wrap my head around Nintendo using the same basic components 5 years later and launching for $50 MORE.
 
BigGreenMat said:
Does anyone have a component list for the Gamecube when it was launched? I am just trying to wrap my head around Nintendo using the same basic components 5 years later and launching for $50 MORE.


Don't forget the magical technology in the wiimotes!
 

Deku

Banned
Stele said:
$158 is just their cost of manufacturing. You're also paying for their Sales, General, Administration, Warranty Reserves and R&D costs. After all that, I'd be surprised as hell if Nintendo is getting more than a 10% margin on Wii.

R&D cost is already sunk so that will be amortized as an accounting cost. I'm sure PS3 losses would be even higher if you amortize R&D as well. But I would not included that.

Marketing costs however can be included. As I've said, Nintendo is pocketing very few dollars on these launch units, even if on paper they are making a profit. The real money comes if Wii takes off and they go into mass production at several million units a month.
 
Cauliflower of Love said:
Don't forget the magical technology in the wiimotes!

I love Nintendo (which is weird because I was a sega fanboy for a long time in my early days), but we all know that the actual production of the Wiimotes is NOT expensive. Nintendo did a great job of integrating existing technologies into a novel and interesting design package, but expensive technologies they are not.

p.s. I noted the sarcasm.
 
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