3DS BoM - $100.71

According to iSuppli

"Nintendo's groundbreaking 3DS handheld gaming system carries a bill of materials (BOM) of $100.71, according to a preliminary physical dissection of the product conducted by the IHS iSuppli Teardown Analysis Service.

When the $2.54 manufacturing cost of the 3DS is added in, the total cost to produce the portable gaming system rises to $103.25. This compares to a retail cost of $249.99 in the United States."

Any thoughts, System Wars?

It's called "making money"

It's called "making money"

GreenGoblin2099

It's called "making money"

GreenGoblin2099

It's called "GreenGoblin has finally answered a question correctly, and gets a gold star for the day"

...

..

Oops, I'm out of gold stars.

[QUOTE="GreenGoblin2099"]

It's called "making money"

SAGE_OF_FIRE

[QUOTE="SAGE_OF_FIRE"][QUOTE="GreenGoblin2099"]

It's called "making money"

loco145

[QUOTE="loco145"][QUOTE="SAGE_OF_FIRE"] It's also called ripping off your customers, they already make money licensing games. [spoiler] I'll still get one eventually [/spoiler] SAGE_OF_FIRE

You guys should try working in retail. It's very common to see huge margins like this, especially on TVs.

[QUOTE="SAGE_OF_FIRE"][QUOTE="loco145"] RD cost are the bulk of the costs.loco145

Not that I necessarily disagree that there are more to costs than the bill of materials.

You must also figure out supply and demand people...

Ummm.... what about packaging, employees' salaries, the mark up in the store so that, you know, stores can make some money too? Plus I would expect Nintendo to want some sort of profit from something they spent a ton of cash on R&D for... and even if R&D didnt cost a large sum... should they not still make a profit? They are a company after all.

$249 seems quite reasonable to me.... of course as a consumer I would prefer it to be lower in cost, but $249 isn't crazy not even a little.

That is a good bit of margin, but nothing to get up in arms about.

Ummm.... what about packaging, employees' salaries, the mark up in the store so that, you know, stores can make some money too? Plus I would expect Nintendo to want some sort of profit from something they spent a ton of cash on R&D for... and even if R&D didnt cost a large sum... should they not still make a profit? They are a company after all.

$249 seems quite reasonable to me.... of course as a consumer I would prefer it to be lower in cost, but $249 isn't crazy not even a little.

moistsandwich

Yes it is overpriced, but it doesn't matter at this point. It's like today's high oil prices. There's a large demand and enough people willing to pay for it so why lower the price if the main goal of a business is to make the most money it can? Unless some one decides to go and plan a large scale protest or boycott, prices will not decrease.

+ Manufacturing + Shipping + R&D + Marketing = More than 100.71 but less than 250.

More goes into products than the base materials. This same issue was brought up with the Wii when it released.

Nintendo Profits, they don't make 150 dollars profit, but they do profit... live with it. Go take somebusiness classes at your local Community college or something because it seems like 90% of you don't comprehend the basics.

+ Manufacturing + Shipping + R&D + Marketing = More than 100.71 but less than 250.

More goes into products than the base materials. This same issue was brought up with the Wii when it released.

Nintendo Profits, they don't make 150 dollars profit, but they do profit... live with it. Go take somebusiness classes at your local Community college or something because it seems like 90% of you don't comprehend the basics.

gamer620

Yeah, it's called a profit margin... I remember learning about it in elementary school.

If you don't like the pricing then vote with your wallet, but in no way is this unreasonable on Nintendos' part.

The hate against the 3DS is strong, real strong. I'd like to see a "BoM" on other companies' systems too, out of fairness.

The hate against the 3DS is strong, real strong. I'd like to see a "BoM" on other companies' systems too, out of fairness.

Bigboi500

Surprise, electronics retail for significantly more than they cost to make.Marka1700

Well, at least this keep the hope alive for a relatively cheap NGP. If the 3DS is that cheap to manufacture a $250 NGP isn't that far off if you add the fact that Sony has said they will take an initial loss on in.

How dare they make a profit? They should just sell it at a loss like Sony, they do it because they love us. :)tagyhag

Exactly, just as long as you dont hack their system and share it to others.

It's called "making money"

GreenGoblin2099

Like a boss!

Two questions though, not directed at you GG

1. I take it thoughs are the exact same components found in the 3DS?
2. Are there not other things that go into putting together a gaming system other than just getting all the parts then sticking the P in the V?

The hate against the 3DS is strong, real strong. I'd like to see a "BoM" on other companies' systems too, out of fairness.

Bigboi500

Anyway, sales for the system are record breaking so I wouldn't pay too much attention to the hate.

Ever heard of a little thing called Research and Development costs? These can run into hundreds of millions (sometimes billions) of dollars, and have to be recouped by selling all new systems at a margin. Seriously, I'd expect you guys to know this...charizard1605

So they're making $150 profit on each unit sold? Propost- oh hey wait it's Nintendo so it must be good.
When is the next pokemon coming again?

[QUOTE="Marka1700"]Surprise, electronics retail for significantly more than they cost to make.Bigboi500

Great profit. Wouldve appreciated a lower price but w/e, Im sure the system is worth the price when it comes to software.

150% profit? Oh nintendo.

150% profit? Oh nintendo.

Espada12

To be honest it's mostly on the internet I hear the hate. Whenever I talk about the 3DS I always hear praise, and the occasional Nintendo is lame. And then you have the people who struggle to keep quiet, but you can tell by there faces that they got something to say.

Anyway, sales for the system are record breaking so I wouldn't pay too much attention to the hate.

ZIVX

[QUOTE="Bigboi500"]

[QUOTE="Marka1700"]Surprise, electronics retail for significantly more than they cost to make.JLF1

[QUOTE="The_Game21x"][QUOTE="charizard1605"]Ever heard of a little thing called Research and Development costs? These can run into hundreds of millions (sometimes billions) of dollars, and have to be recouped by selling all new systems at a margin. Seriously, I'd expect you guys to know this...lordlors

And where exactly did I say Nintendo should sell their system at a loss? My point is, Nintendo could have priced the 3DS at a much lower price than $250 and still made a healthy profit off of each unit sold but they didn't, choosing instead to go for the big cash grab from early adopters rather than offering the system at a lower price from the outset.

um...Profit?

I don't recall any system getting as much hate here as the 3DS is getting, and that's saying something. I guess with the DS being the best system this generation, with the best sales and best library, the 3DS has inherited the hate along with the futile hope that it would fail.Bigboi500

[QUOTE="ZIVX"]

To be honest it's mostly on the internet I hear the hate. Whenever I talk about the 3DS I always hear praise, and the occasional Nintendo is lame. And then you have the people who struggle to keep quiet, but you can tell by there faces that they got something to say.

Anyway, sales for the system are record breaking so I wouldn't pay too much attention to the hate.

Bigboi500

Nah, if anything the 3DS is one of the most highly praised systems ever. There's so much praise for it that the little hate their is sticks out like a sore thumb, making it seem like there is more than there really is.

Yes, people should be aware that a BoM isn't what it costs to "sell" a product, that's why I didn't write Nintendo makes $150 on every 3DS!!!!! And simply wrote 3DS BoM... :|

The hate against the 3DS is strong, real strong. I'd like to see a "BoM" on other companies' systems too, out of fairness.

Bigboi500

[QUOTE="lordlors"][QUOTE="The_Game21x"] I'm sure Sony and Microsoft had hefty R&D costs at the beginning of the gen and they still sold their systems at a loss so...The_Game21x

And where exactly did I say Nintendo should sell their system at a loss? My point is, Nintendo could have priced the 3DS at a much lower price than $250 and still made a healthy profit off of each unit sold but they didn't, choosing instead to go for the big cash grab from early adopters rather than offering the system at a lower price from the outset.

[QUOTE="The_Game21x"]

[QUOTE="lordlors"] Ignorance. Sony and Microsoft doesn't make just video game systems and video games unlike Nintendo. They got numerous other divisions in electronics, PC software, etc. Nintendo should never ever sell a system for a loss especially that their third party support isn't good compared to Sony's and Microsoft's.ShuichiChamp24

And where exactly did I say Nintendo should sell their system at a loss? My point is, Nintendo could have priced the 3DS at a much lower price than $250 and still made a healthy profit off of each unit sold but they didn't, choosing instead to go for the big cash grab from early adopters rather than offering the system at a lower price from the outset.