Report: 3DS costs surprisingly little to make

http://www.gamesindustry.biz/articles/2011-03-24-cost-of-3ds-parts-estimated-at-under-GBP62

That isn't much. I've said it since last september, Nintendo is charging even more profit then they usually have on the 3DS. the 3D screen for example is much cheaper than most people think. With the Wii, Nintendo charged roughly $40-$50 extra after costs per unit, with the 3DS its looking like $100 or more. So all those people who hoped for a $199 price point, it actually could've happened, well of course they make more money this way.

I'm cool with spending $250 on it, though I wish PWR was packed in since it has little value as a $40 package.

Here we go again! Who the hell cares about how much it takes from companies to produce goods. Please people grow up and stop being so freaking ignorants. Do you have the billions of dollars and manufactures to produce it? WHY AREN'T YOU TELLING THIS ABOUT THE I-PODS?

Parts is only one part of the equation, they need to make back advertising costs, manufacturing costs and research and development costs.bobbetybob

Thats nice to know, but like others have said, thats just the cost of the materials used to make the 3DS right? Not the cost of developement, shipping, advertising, research, manerfacturing, etc etc? Put all that together and Im sure that they arent making as much profit as that link might suggest.

Thats nice to know, but like others have said, thats just the cost of the materials used to make the 3DS right? Not the cost of developement, shipping, advertising, research, manerfacturing, etc etc? Put all that together and Im sure that they arent making as much profit as that link might suggest.

Gamingclone

[QUOTE="Gamingclone"]

Thats nice to know, but like others have said, thats just the cost of the materials used to make the 3DS right? Not the cost of developement, shipping, advertising, research, manerfacturing, etc etc? Put all that together and Im sure that they arent making as much profit as that link might suggest.

riariases

Wow, well then, if you look at nothing but materials, Raw materials at that.. then everything is over priced :P

[QUOTE="riariases"][QUOTE="Gamingclone"]

Thats nice to know, but like others have said, thats just the cost of the materials used to make the 3DS right? Not the cost of developement, shipping, advertising, research, manerfacturing, etc etc? Put all that together and Im sure that they arent making as much profit as that link might suggest.

Wow, well then, if you look at nothing but materials, Raw materials at that.. then everything is over priced :P

I don't trust reports. :DRod90

Even if the handheld was only $20 in material costs that does not mean Nintendo is making a $230 dollar profit. ekalbtwin

[QUOTE="ekalbtwin"]Even if the handheld was only $20 in material costs that does not mean Nintendo is making a $230 dollar profit. riariases

Thats nice to know, but like others have said, thats just the cost of the materials used to make the 3DS right? Not the cost of developement, shipping, advertising, research, manerfacturing, etc etc? Put all that together and Im sure that they arent making as much profit as that link might suggest.

Gamingclone

[QUOTE="Rod90"]I don't trust reports. :Dthom_maytees

That's not actually that bad. It costs Apple $190 to make an iPhone and they try to sell those (off contract) for $900.

The problem is this only accounts for raw materials. We don't know anything about overhead or direct labour costs. It's pretty meaningless.

Here we go again! Who the hell cares about how much it takes from companies to produce goods. Please people grow up and stop being so freaking ignorants. Do you have the billions of dollars and manufactures to produce it? WHY AREN'T YOU TELLING THIS ABOUT THE I-PODS?

soulreaper-4

I don't personally mind much myself, But i know some people do

Also, most estimates say iPod parts cost about $180, they sell it for a $50 profit per unit, not including costs of marketing, etc.

pretty sure shipping and advertising are also included on the price, and even then, why so shocked that a company in a capitalist economy is charging more for a product than it costs them? it's like that everywhere in the world, except for the videogames industry. nintendo isn't the weird one, sony and microsoft are.BrunoBRS

plus it cost million to devolp a new system, Nintendo needs to recoup these costs

In speaking of the raw materials, how can we determine their costs if it is possible that Nintendo have some deals with its suppliers to buy the materials at a discount (below market value)? We cannot say that the costs of the raw materials are what they actually cost, and it is possible that the 3DS cost much less (or cost much more) than the third-party group estimates.

In speaking of the raw materials, how can we determine their costs if it is possible that Nintendo have some deals with its suppliers to buy the materials at a discount (below market value)? We cannot say that the costs of the raw materials are what they actually cost, and it is possible that the 3DS cost much less (or cost much more) than the third-party group estimates.

thom_maytees

If they sell 4 million at $150 profit per console, that's what like 600 million dollars? I'd like to think that pays for labor, and R&D

If they sell 4 million at $150 profit per console, that's what like 600 million dollars? I'd like to think that pays for labor, and R&D

darth-pyschosis

It's not a $150 profit. $101 is only the cost of raw materials - It doesn't take into account overhead and direct labour among other expenses.

[QUOTE="soulreaper-4"]

Here we go again! Who the hell cares about how much it takes from companies to produce goods. Please people grow up and stop being so freaking ignorants. Do you have the billions of dollars and manufactures to produce it? WHY AREN'T YOU TELLING THIS ABOUT THE I-PODS?

darth-pyschosis

I don't personally mind much myself, But i know some people do

Also, most estimates say iPod parts cost about $180, they sell it for a $50 profit per unit, not including costs of marketing, etc.

[QUOTE="darth-pyschosis"]

If they sell 4 million at $150 profit per console, that's what like 600 million dollars? I'd like to think that pays for labor, and R&D

Haziqonfire

It's not a $150 profit. $101 is only the cost of raw materials - It doesn't take into account overhead and direct labour among other expenses.

[QUOTE="Haziqonfire"]

[QUOTE="darth-pyschosis"]

If they sell 4 million at $150 profit per console, that's what like 600 million dollars? I'd like to think that pays for labor, and R&D

soulreaper-4

It's not a $150 profit. $101 is only the cost of raw materials - It doesn't take into account overhead and direct labour among other expenses.

My point is, don't you think more than half a billion dollars probably covers a lot of that? I mean, $600 million after raw matierals from 4 million units? (that's launch sales)

I'm just saying, it'll be a few months and they'll be at in the 2-5 Billion dollars, if this $100 raw matierals is true.

I sincerely doubt it costs that much more than 600 million with labor, R&D, etc. Probably around that, maybe near 1 billion, but pretty much the R&D for the 3DS will be paid for in about 6 months, at least for the 3DS's research. Obviously a lot of that is going to R&D on Wii 2.

I'm just saying, there are making a lot of money off it. It's not a bad thing. I don't mind. Everyone keeps talking about how this is raw matierals, but other expenses, but I doubt that 500 Million-1Billion isn't going to cover that.

[QUOTE="darth-pyschosis"]

[QUOTE="soulreaper-4"]

Here we go again! Who the hell cares about how much it takes from companies to produce goods. Please people grow up and stop being so freaking ignorants. Do you have the billions of dollars and manufactures to produce it? WHY AREN'T YOU TELLING THIS ABOUT THE I-PODS?

soulreaper-4

I don't personally mind much myself, But i know some people do

Also, most estimates say iPod parts cost about $180, they sell it for a $50 profit per unit, not including costs of marketing, etc.

Sorry, I didn't make it clear enough. I am talking about the iPod Touch, 4th generation, with 8GB storage, Wireless N, custom Apple A4 CPU, 512MB RAM. It's raw matierals are $180. It's sold for $230. I thought I already mentioned that, but I guess I didn't.

I am not saying anything about the Nano.

You brought up the iPods, and I'm just saying, they are sold for a $50 profit per unit with only raw matierals considered.

[QUOTE="soulreaper-4"][QUOTE="darth-pyschosis"]

I don't personally mind much myself, But i know some people do

Also, most estimates say iPod parts cost about $180, they sell it for a $50 profit per unit, not including costs of marketing, etc.

Sorry, I didn't make it clear enough. I am talking about the iPod Touch, 4th generation, with 8GB storage, Wireless N, custom Apple A4 CPU, 512MB RAM. It's raw matierals are $180. It's sold for $230. I thought I already mentioned that, but I guess I didn't.

I am not saying anything about the Nano.

You brought up the iPods, and I'm just saying, they are sold for a $50 profit per unit with only raw matierals considered.

[QUOTE="darth-pyschosis"]

[QUOTE="soulreaper-4"] Dude pleas use your mind! Do you really think an I-pod nano, just plastic the size of a coin with on button and a 1 to 1.5 inches screen cost more than a 3DS? When you get one of those ipods you are getting just flash memory in a box.riariases

Sorry, I didn't make it clear enough. I am talking about the iPod Touch, 4th generation, with 8GB storage, Wireless N, custom Apple A4 CPU, 512MB RAM. It's raw matierals are $180. It's sold for $230. I thought I already mentioned that, but I guess I didn't.

I am not saying anything about the Nano.

You brought up the iPods, and I'm just saying, they are sold for a $50 profit per unit with only raw matierals considered.

I really don't care about it that much, I wasn't even aware anyone was trying to point out "raw matierals" definition to me, or whatever it meant. Seems like Parts and Hardware is the better term.

But regardless, my point stands. Nintendo is making a huge profit off the 3DS. Good for them. I would hope it does cost $100 to make per unit, all costs considered, and wouldn't be surprised if it was in the $150 range all costs considered, as they are not a stupid company and should sell it for a good profit.

It just is a little strange to see the parts and hardware costs that were estimated for the Wii, and see the numbers for the 3DS, and see a much bigger gap.

Like I said, most estimates pointed at $200 parts and stuff for the Wii, and a lot of estimates are pointing at $100 for the 3DS. Yes, of course that doesn't factor in all costs, but certainly the 3DS has much more room for potential profit then the Wii.

I wonder, if Nintendo was willing to only charge roughly $50 more than the parts for a sinlge Wii, that $50 must be going a long way in paying for labor, R&D, etc. So how much farther is $150 going? Hopefully we get actual messaging and some killer features brought to us from the money they are making from this.

And to be fair every iPod Touch brake down I see come every september when a new generation starts seems to always point in the $170-$180 range.

i couldnt imagin anyone buying a 3DS if they dont already own a wii, considering a wii costs 50 bucks less. Im surprised nintendo chose to sell it for 250, THATS A LOT OF BANANAS

My point is, don't you think more than half a billion dollars probably covers a lot of that? I mean, $600 million after raw matierals from 4 million units? (that's launch sales)

I'm just saying, it'll be a few months and they'll be at in the 2-5 Billion dollars, if this $100 raw matierals is true.

I sincerely doubt it costs that much more than 600 million with labor, R&D, etc. Probably around that, maybe near 1 billion, but pretty much the R&D for the 3DS will be paid for in about 6 months, at least for the 3DS's research. Obviously a lot of that is going to R&D on Wii 2.

I'm just saying, there are making a lot of money off it. It's not a bad thing. I don't mind. Everyone keeps talking about how this is raw matierals, but other expenses, but I doubt that 500 Million-1Billion isn't going to cover that.

darth-pyschosis

They'll be making a profit on each unit sold... though it's not going to be a $149 margin. A small margin can heap big returns if the product is popular enough, so even a $50-70 dollar margin would mean higher revenue for Nintendo, but who knows how much expense they have.

[QUOTE="riariases"][QUOTE="darth-pyschosis"]

Sorry, I didn't make it clear enough. I am talking about the iPod Touch, 4th generation, with 8GB storage, Wireless N, custom Apple A4 CPU, 512MB RAM. It's raw matierals are $180. It's sold for $230. I thought I already mentioned that, but I guess I didn't.

I am not saying anything about the Nano.

You brought up the iPods, and I'm just saying, they are sold for a $50 profit per unit with only raw matierals considered.

I really don't care about it that much, I wasn't even aware anyone was trying to point out "raw matierals" definition to me, or whatever it meant. Seems like Parts and Hardware is the better term.

But regardless, my point stands. Nintendo is making a huge profit off the 3DS. Good for them. I would hope it does cost $100 to make per unit, all costs considered, and wouldn't be surprised if it was in the $150 range all costs considered, as they are not a stupid company and should sell it for a good profit.

It just is a little strange to see the parts and hardware costs that were estimated for the Wii, and see the numbers for the 3DS, and see a much bigger gap.

Like I said, most estimates pointed at $200 parts and stuff for the Wii, and a lot of estimates are pointing at $100 for the 3DS. Yes, of course that doesn't factor in all costs, but certainly the 3DS has much more room for potential profit then the Wii.

I wonder, if Nintendo was willing to only charge roughly $50 more than the parts for a sinlge Wii, that $50 must be going a long way in paying for labor, R&D, etc. So how much farther is $150 going? Hopefully we get actual messaging and some killer features brought to us from the money they are making from this.

And to be fair every iPod Touch brake down I see come every september when a new generation starts seems to always point in the $170-$180 range.

The idea of a company is to make money... hence the profit ?!queen_vee

[QUOTE="queen_vee"]The idea of a company is to make money... hence the profit ?!BrunoBRS

Who has said that it is shocking in this thread? I have said repeatedly that it makes sense, and that they should.

I'm just pointing out there is a much bigger gap between estimated parts and hardware costs, and the retail price, of a 3DS, then there was for the Wii when it came out. I really wanted to see what people thought about this, but everyone keeps posting about how its outrageous to think they wouldn't charge a profit, and put up definitions to terms that people simply got wrong.

I don't understand these posts because I've never said charging a $150 profit, or $50 profit, or X profit is a bad thing, I've said its a good thing, and I've already admitted I didn't understand what people meant by raw matierals, and I've been corrected so I really don't know why the thread can't be about people's opinions on the sizable profit Nintendo is making per unit, what they'd like to see happen with that profit, and how they compare it to the Wii at it's launch.

[QUOTE="BrunoBRS"][QUOTE="queen_vee"]The idea of a company is to make money... hence the profit ?!darth-pyschosis

Who has said that it is shocking in this thread? I have said repeatedly that it makes sense, and that they should.

I'm just pointing out there is a much bigger gap between estimated parts and hardware costs, and the retail price, of a 3DS, then there was for the Wii when it came out. I really wanted to see what people thought about this, but everyone keeps posting about how its outrageous to think they wouldn't charge a profit, and put up definitions to terms that people simply got wrong.

I don't understand these posts because I've never said charging a $150 profit, or $50 profit, or X profit is a bad thing, I've said its a good thing, and I've already admitted I didn't understand what people meant by raw matierals, and I've been corrected so I really don't know why the thread can't be about people's opinions on the sizable profit Nintendo is making per unit, what they'd like to see happen with that profit, and how they compare it to the Wii at it's launch.

[QUOTE="darth-pyschosis"]

[QUOTE="BrunoBRS"] i know, shocking, isn't it?!BrunoBRS

Who has said that it is shocking in this thread? I have said repeatedly that it makes sense, and that they should.

I'm just pointing out there is a much bigger gap between estimated parts and hardware costs, and the retail price, of a 3DS, then there was for the Wii when it came out. I really wanted to see what people thought about this, but everyone keeps posting about how its outrageous to think they wouldn't charge a profit, and put up definitions to terms that people simply got wrong.

I don't understand these posts because I've never said charging a $150 profit, or $50 profit, or X profit is a bad thing, I've said its a good thing, and I've already admitted I didn't understand what people meant by raw matierals, and I've been corrected so I really don't know why the thread can't be about people's opinions on the sizable profit Nintendo is making per unit, what they'd like to see happen with that profit, and how they compare it to the Wii at it's launch.

I'm going to say again, I'm wrong about that term, or whatever terms I am using in relation to matierals, parts, hardware, etc.

But you are not contributing anything to the topic. You quoted me on a post where I specifically say I wish people would ignore that, and post about the actual topic, and you could've pointed the error on my part like you did, but then actually said something about the topic.

I'm going to ask you Bruno, and mind you I'm saying I've got the wrong terms, etc.

What do you think about the large profit margin Nintendo is charging per each 3DS unit, in relation to the Wii's original profit margin per unit, and what do you hope comes out of the money Nintendo will be making per unit?

and i'm going to answer:

"we don't know how much it actually costs to put a 3DS in the stores, or even how much it costs nintendo just to make one, as all we have is how much it costs nintendo to buy chunks of plastic, not produce, ship and advertise one, so we don't even know how much is nintendo profiting. but even if they were profiting $150 per product, it's a capitalist world. there's cost and demand. the 3DS is a huge success so why sell for less? you can't blame people for wanting to make money. we don't see people complaining about buying a barely different iPhone every other month. we see lines circling the blocks, and everyone's fine with it".

[QUOTE="BrunoBRS"][QUOTE="queen_vee"]The idea of a company is to make money... hence the profit ?!darth-pyschosis

Who has said that it is shocking in this thread? I have said repeatedly that it makes sense, and that they should.

I'm just pointing out there is a much bigger gap between estimated parts and hardware costs, and the retail price, of a 3DS, then there was for the Wii when it came out. I really wanted to see what people thought about this, but everyone keeps posting about how its outrageous to think they wouldn't charge a profit, and put up definitions to terms that people simply got wrong.

I don't understand these posts because I've never said charging a $150 profit, or $50 profit, or X profit is a bad thing, I've said its a good thing, and I've already admitted I didn't understand what people meant by raw matierals, and I've been corrected so I really don't know why the thread can't be about people's opinions on the sizable profit Nintendo is making per unit, what they'd like to see happen with that profit, and how they compare it to the Wii at it's launch.