3DS BoM - $100.71

[QUOTE="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.

Giant_Panda

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.

[QUOTE="ShuichiChamp24"][QUOTE="The_Game21x"] Excuse me pal, I'm not ignorant of what kind of company Nintendo is or the extent of its operations. Don't assume things about me.

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.

JLF1

Took the words right out of my mouth.

$250 is just fine for the system. I have no issue with the price, but I wish there was more games to my liking for it. Anyone who thinks the system was only going to make Nintendo a small marginal profit and not a large sum, or heck even be sold at a loss, clearly doesn't understand basic economics.

selling drugs

[QUOTE="JLF1"]

[QUOTE="ShuichiChamp24"] Yes you know, because Nintendo gets all of that money. The_Game21x

Took the words right out of my mouth.

[QUOTE="The_Game21x"]

[QUOTE="JLF1"]

They get the far majority of it though. Retailers doesn't make as much on a system as you might think.

ShuichiChamp24

Took the words right out of my mouth.

As of 2009, the Wii cost Nintendo $88 to manufacture.

I'm sure it's decreased since then.

Atlas Shrugged came to mind reading some of the comments in this thread...

Now how much direct labor and overhead can be attributed to each unit? There is a lot more to making these than just direct materials, you know...

[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...The_Game21x

yes because robots work at nintendo and no salaries need to be paid...

supply and demand..

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

lol seriously... raw parts cost =/= how much it costs to make... They have to manufacture them by the millions, run factories, pay the employees, ship them all across the world and then profit so they can afford to expand and better their business.

If anything im surprised thats how much the raw parts cost to make considering its nintendo... I mean the GBA when that was released cost less than 10$ to make but they sold it for 100$

[QUOTE="GreenGoblin2099"]

It's called "making money"

SAGE_OF_FIRE

Value is determined by the consumer. The market research Nintendo conducted said people were willing to pay $250-$350 for a 3DS. They're not "ripping" off anyone, they're a busines and their end goal is to maximize revenues. To some the 3DS is worthy of the $250 price tag, to others the value isn't there, they won't purchase one.

[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...VendettaRed07

lol seriously... raw parts cost =/= how much it costs to make... They have to manufacture them by the millions, run factories, pay the employees, ship them all across the world and then profit so they can afford to expand and better their business.

If anything im surprised thats how much the raw parts cost to make considering its nintendo... I mean the GBA when that was released cost less than 10$ to make but they sold it for 100$

The manufacturing costs are a pittance.

R&D $ equate to sunk costs. They aren't supposed to factor into the cost of production per unit.

R&D + Shipping + Labor etc etc...

Also so .....128mb of RAM & whats that other 32mb? probably for OS...

[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.

I don't see the marketing and R&D costs in there. Please add those too.

This is a business of making money people. Don't like it then don't buy it. You all know the thing is going to be selling out across the board regardless anyways.

Sony and Microsoft are software and electronic giants. Their entire financial well being doesn't ride on the success or failure of their video games division. Nintendo's only division IS their vido game division.

I don't see the marketing and R&D costs in there. Please add those too.

KungfuKitten

Research and Development and other overhead costs are clearly not being included in these figures.JAB991

-----

Neither R&D nor marketing form part of COGS. Businesses have expenses - fatuous statement of the day 1. Businesses want to make profit - fatuous statement of the day 2.

Are there any more cogent thoughts on the bill of materials, implications for the COGS and margins?

People are still buying DS at full price. Why would 3DS be priced close to DS?

That's also why they released Pokemon B/W on DS.

[QUOTE="GreenGoblin2099"]

It's called "making money"

Raymundo_Manuel

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.

Hey!! I always get it right, man... I get it right so many times that my face is already covered with gold stars.

Like a boss!

R3FURBISHED

lmao!! that's gold!! :lol:

[QUOTE="KungfuKitten"]

I don't see the marketing and R&D costs in there. Please add those too.

shinrabanshou

Gamers with industry data are like monkeies with with fishing poles.

God knows how they got them and God knows that they don't know how to use it.

They are probably selling to retailers at like $175-200. And with Packaging, Marketing, Shipping and R&D costs, it is probably costing them closer to $150...

Their pricing isn't unreasonable.

[QUOTE="JLF1"][QUOTE="ShuichiChamp24"] Yes you know, because Nintendo gets all of that money. The_Game21x

The Wii I could understand to a degree, coming after gamecube and N64. But nintendo could clearly lower the price. For those suggesting that nintendo needs to pay off other costs, licensing fees would do that. It's not just the system that makes the money, it's 3rd party games as well.

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

[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...charizard1605

[QUOTE="charizard1605"][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...nintendoboy16

Ok so what if Nintendo is ripping us off. Sony is also ripping us off because they are gonna charge us $100 more for the NGP that has 3g Network and plus we would still be charged monthly for the 3g network even though we already paid the $100 for it. How stupid is that?

Ok so what if Nintendo is ripping us off. Sony is also ripping us off because they are gonna charge us $100 more for the NGP that has 3g Network and plus we would still be charged monthly for the 3g network even though we already paid the $100 for it. How stupid is that?

ChromeGrill212

1. We don't know how much NGP will cost

2. We don't know if it uses monthly charges

3. 3G is a service

The parts cost $100 to buy, but what about the other costs? The cost of wages for employees, who not only researched and designed the product, but those that now have to market it as an example. Now we have the cost of packaging and manuals to be printed, shipping and distributing the product to retail, and now you finally have the product in consumers hands; the people who will provide after sales support for it now have to be paid and funded with a warranty/return setup. I would be sure they still make a decent profit after all this is nowhere near the $149 that article or articles like it will sensationalise but I personally believe they make around $60 off each unit sold at present.

Welcome to business, where everything is marked up the ass.

It's called "making money"

hahahaha...lmao at all the people thinking that $150 profit off of each 3DS goes in nintendos pocket and are mad

they have to pay off all their advertising fees, manufacturing costs, etc. and that's ALOOOOOOT of money to pay off

see...nintendo is smart and actually makes a profit on their systems to pay off costs and not go into debt...unlike sony

hahahaha...lmao at all the people thinking that $150 profit off of each 3DS goes in nintendos pocket and are mad

they have to pay off all their advertising fees, manufacturing costs, etc. and that's ALOOOOOOT of money to pay off

see...nintendo is smart and actually makes a profit on their systems to pay off costs and not go into debt...unlike sony

CDUB316

[QUOTE="GreenGoblin2099"]

It's called "making money"

SAGE_OF_FIRE

[QUOTE="CDUB316"]

hahahaha...lmao at all the people thinking that $150 profit off of each 3DS goes in nintendos pocket and are mad

they have to pay off all their advertising fees, manufacturing costs, etc. and that's ALOOOOOOT of money to pay off

see...nintendo is smart and actually makes a profit on their systems to pay off costs and not go into debt...unlike sony

Bread_or_Decide

While I am sure that neither you or that other guy are accountants, you do know that Sony let go off up to 20,000 staff, didnt start to make money on PS3 into 2010 and have reduced investment into the business by up to 30%. Bankrupt, certainly not by any stretch of the imagination, financial worries? Yes..

http://www.variety.com/index.asp?layout=story&articleid=VR1117895110&categoryid=10&cs=1

[QUOTE="CDUB316"]

hahahaha...lmao at all the people thinking that $150 profit off of each 3DS goes in nintendos pocket and are mad

they have to pay off all their advertising fees, manufacturing costs, etc. and that's ALOOOOOOT of money to pay off

see...nintendo is smart and actually makes a profit on their systems to pay off costs and not go into debt...unlike sony

Bread_or_Decide

not all of sony, but their gaming division numbers have just about always been under par

took them 6 years to make their first profit on the PS2

While I am sure that neither you or that other guy are accountants, you do know that Sony let go off up to 20,000 staff, didnt start to make money on PS3 into 2010 and have reduced investment into the business by up to 30%. Bankrupt, certainly not by any stretch of the imagination, financial worries? Yes..

http://www.variety.com/index.asp?layout=story&articleid=VR1117895110&categoryid=10&cs=1

ccagracing

Why on earth did they price the 3DS higher than the original DS? Ugh. Especially when this price point was considered such a negative for the PSP.Bread_or_Decide

Because unlike Sony, Nintendo actually has a pretty well defined strategy as to what they're doing. They're not trying to do what everything, they're focusing on a specific aspect or two that they excel in.

Sony's strategy has ultimately been "lets do what everyone else is doing" instead of focusing on one particular thing that they're good at.

Plus, it's not as if Nintendo just randomly priced the 3DS. They did so after seeing public reaction to the 3DS at E3 and after performing market research, it's a common business practice.

[QUOTE="Bread_or_Decide"]Why on earth did they price the 3DS higher than the original DS? Ugh. Especially when this price point was considered such a negative for the PSP.Haziqonfire

Because unlike Sony, Nintendo actually has a pretty well defined strategy as to what they're doing. They're not trying to do what everything, they're focusing on a specific aspect or two that they excel in.

Sony's strategy has ultimately been "lets do what everyone else is doing" instead of focusing on one particular thing that they're good at.

Plus, it's not as if Nintendo just randomly priced the 3DS. They did so after seeing public reaction to the 3DS at E3 and after performing market research, it's a common business practice.