Topic: Wii Manufacturing Costs vs PS3

[WuTangTurtle]

http://www.kotaku.com/gaming/wii/wii-autopsy-discovers-manufacturing-cost-221736.php

Quote
Graphics chip: $29.60
CPU: $13.00
DRAM: $7.80
Optical disk drive: $31.00
Power supply: $11.30
Manufacturing cost: $19.50
Cost total: $158.30
Wholesale price: $195.99

Interesting if true, however they don't mention the GC ports, 512mb flash memory, sd card reader, sensor bar, wireless NIC, and a bunch more stuff.  The picture on the link shows PS3 costs too, it totals out to $805.85 to make, meaning a $400 loss for every system sold. ouch

[NinGurl69 *huggles]

It REALLY prints money!

[Leck]

Quote
Graphics chip: $29.60
CPU: $13.00
DRAM: $7.80
Optical disk drive: $31.00
Power supply: $11.30
Manufacturing cost: $19.50
Cost total: $158.30
Wholesale price: $195.99

Actually playing the Wii:  Priceless!

[SixthAngel]

Seems very unreliable.  It doesn't include all the things you said or the controller that comes with the system.

(oh yeah, also add in the price of Wii Sports to the consoles in the us of a.

[zakkiel]

I'm thinking they just about broke even when you put it all together. But they're getting great game revenues.

[WuTangTurtle]

Quote
Originally posted by: SixthAngel
Seems very unreliable.  It doesn't include all the things you said or the controller that comes with the system.

(oh yeah, also add in the price of Wii Sports to the consoles in the us of a.

I didn't read a damn thing u said because ur avatar is so adorable!

[NeoThunder]

ahh....if it cost 800 dollars to make a PS3, they arn't loseing 400 a system, 500, and 600....thats what a PS3 cost people.  Now, whats it's really worth is a lot less than that.

[Ceric]

I thought Nintendo announced to the share holders that they are making money on every Wii sold.  I would think at least 5 dollars.

[BlkPaladin]

The wholesale price includes everything that comes with the system. This was made by a semiconductor group, probally the same one that said Nintendo could produce 11 million consoles by the end of the year if they wanted to.

As for the PS3 they lose an average of $262.30 per console sold. (They lose about $788 per 3 consoles sold (they manufacture them at about 1:2 (one 20GB to two 60 GB). I recieved these numbers from ps3.ign.com and the shipping reports from Japan. The software tie in to cover that loss is about 26 title per console. (That is assuming they are still making about $10 per game per liscense.)

Also if you remember when the sales sheet for Circuit City got circulated they were buying the consoles at about $230 per console make it a little less then $20 of profit for themselves. That woulld mean Nintendo is making about $30 or a little more per console sold. (That is about $60million right now since there are at least at 2 million Wiis sold.) (.4+mil Jap, .6+US, about .4 EU, plus (@.3)Canada, (@.04)Australia and (@.1)Mexico)(That is if Mexico is considerd part of North America because some include Mexico in Central America)  

[JonLeung]

I don't think the numbers are accurate, but it wouldn't surprise me if Nintendo profited on every Wii sold like they say.  And even if they happened to be lying it's unlikely they'd be losing much, certainly nowhere near as much as Sony loses per PS3 sold.

If buying a PS3 hurts Sony, a competitor should buy millions of PS3s just to destroy or discard them - or at least to prevent anyone from playing games on them.  That would mean that Sony spent hundreds of millions of dollars, or potentially billions, on nothing.  I'm sure I brought that up before and there probably is a law against that.    But if Bill Gates retired and totally dissociated himself from Microsoft, he could afford to do it just for kicks, so couldn't he?

[BlkPaladin]

Doing that would backfire. It would give the manufacture inflated user base satistics. Sony did this with the PS2 but in this case they didn't factor out multiple systems bought because of the drive errors. So if someone did that Sony could go to a developer and say see we have such a big user base you can make back your investment plus more on out unit.

[BigJim]

These numbers fly in the face of earlier price sheets from stores.

The 512MB NAND memory adds at least $20, as that is about Apple's price for their 512MB NAND parts. Wiimotes are likely another $15ish. Don't really know how to price their bluetooth/network chip, but around $10 wouldn't be surprising. Plus the other minor things they omit that are negligible.

[Infernal Monkey]

$158 seems a little high for Sega Saturn technology loololOLOLOLOL

[MattVDB]

I really don't see how people come up with these numbers.  It seems they were only created to say "See, Nintendo should have sold it to us for less."  Really.  What other purpose to these guesstimated prices give us?  Hope that the price will come down?  

Nintendo was smart launching 2 days after the PS3, even when everybody thought they should launch a month before at least.  They let the public know what the expected price for the new generation was before showing up in the public's eye.  Perfect planning.  250 dollars seems like a steal.  I liken it to an iPod.  Sure, you can buy cheaper alternatives.  Sure there are others with more features (no FM receiver STILL!?).  But when it comes down to it, they are insanely popular.  They are a status symbol, and now people don't look twice at the price.  I know personally, it was just at a price that I didn't want to pay, but when I did, I felt like I bought something worthwhile.  It gave the iPod something more, because it was expensive.  That's how I see the Wii.  You are buying into something.  It's probably a bit more then you originally hoped, but after it's said and done, you won't be disappointed in the least.

[Renny]

I won't be disappointed at all, because I'll buy it after a price-drop.

I knew this might one day arrive. The transation from entertainment machine to lifestyle device. Oh woe is the gamer. (Analogy: VH1 of music, to VH1 of popular bullscat. Reggie better be damn glad he didn't fuss with my VH1 Classic.)