How much does it cost to make a wii?

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dane-cook-sucks

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#1 dane-cook-sucks
Member since 2007 • 122 Posts

I know that sony and MS released the figures on how much a console costs to make, and sony is still in the red on theirs.

But exactly how much does it cost to make a wii, nothing that its processor is at most double the gamecubes and the only main difference is a trippy remote. (did they even release tech specs on their system ? )

Is it possible that the wii is made so cheaply that if ms or ps3 has a dramatic price drop, nintendo can have thier own because it made me so cheap to produce.

Cause right now i have a feeling that $250 is only the result of supply and demand and since theirs more demand for their console, they can keep it at that price.

On a similar note, how much does it cost to make an ipod?

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Plug_One

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#2 Plug_One
Member since 2007 • 501 Posts

$5

But it's worth $250 to me so I don't care how much money Nintendo makes off of it.

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Video_Game_King

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#3 Video_Game_King
Member since 2003 • 27545 Posts
I heard on G4 that with each Wii sold, Nintendo makes a $40 profit, so I'll assume $210.
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blizzvalve

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#4 blizzvalve
Member since 2007 • 14052 Posts
I read somewhere that said that it costs $158 to make.
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OpiateE

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#5 OpiateE
Member since 2005 • 319 Posts
gamecube (100$) + wiimote (60$)=160$ +nintendo's greed (90$) = $250
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Lazy_Boy88

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#6 Lazy_Boy88
Member since 2003 • 7418 Posts
I think they were taking about $70 profit at launch which is now probably up to $130. Console couldn't cost more than $90 to make considering it is essintially a gamecube with $4 worth of flash memory in it. Controller and packaging is probably another $30. It can be worth it to you but the Wii is a total rip-off in for the hardware, games, and VC downloads in comparison to what the other 2 companies offer.
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GunSmith1_basic

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#7 GunSmith1_basic
Member since 2002 • 10548 Posts

gamecube (100$) + wiimote (60$)=160$ +nintendo's greed (90$) = $250OpiateE

remember its the console, a wiimote, a nunchuck, and wiisports. Plus, there's manufacturing costs. Not only that, but demand for the wii is still red hot. That is the law of supply and demand and it is a good law. If nintendo sold the whole thing for under $200, demand would be even hotter, and there might be ebay and criminal issues like the ps3 during launch.

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Hewkii

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#8 Hewkii
Member since 2006 • 26339 Posts
it costs pennies to make a copy of a game.
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Dirtydog876

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#9 Dirtydog876
Member since 2006 • 117 Posts

gamecube (100$) + wiimote (60$)=160$ +nintendo's greed (90$) = $250OpiateE

LOL

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gromit007

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#10 gromit007
Member since 2006 • 3024 Posts
I am so glad Nintendo makes a profit on Wii's. I would really really really hate to have to pay $60 for every new game I buy. Yes, 360 and PS3 games are more expensive mainly to recoup losses on hardware.
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ganon42

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#11 ganon42
Member since 2004 • 1749 Posts
it costs nintendo 158.00 to manufacture a nintendo wii. Including all accesories, it costs them less then 200.00. IMO, its a total rip off.

LINK:

http://www.engadget.com/2006/12/15/wii-manufacturing-costs-ring-up-to-just-158/

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SpecialForcesOp

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#12 SpecialForcesOp
Member since 2007 • 1043 Posts

it costs pennies to make a copy of a game.Hewkii

But it cost Millions to actually develop one.

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SA--X

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#13 SA--X
Member since 2007 • 340 Posts
I'm going to be a non-conformist and say it costs them 251, they are selling at a loss. Ha, you worthess people. You critisize them while they are selling at a loss to better the customer. For shame.
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SA--X

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#14 SA--X
Member since 2007 • 340 Posts

[QUOTE="Hewkii"]it costs pennies to make a copy of a game.SpecialForcesOp

But it cost Millions to actually develop one.

I think he's comparing that to making a console...

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GunSmith1_basic

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#15 GunSmith1_basic
Member since 2002 • 10548 Posts
[QUOTE="SpecialForcesOp"]

[QUOTE="Hewkii"]it costs pennies to make a copy of a game.SA--X

But it cost Millions to actually develop one.

I think he's comparing that to making a console...

i dont think so. I think he means the pennies it takes to press a disc
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RahnAetas

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#16 RahnAetas
Member since 2003 • 1834 Posts
No one ever considers that retails mark up the Wii to make a profit themselves.
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SA--X

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#17 SA--X
Member since 2007 • 340 Posts
[QUOTE="SA--X"][QUOTE="SpecialForcesOp"]

[QUOTE="Hewkii"]it costs pennies to make a copy of a game.GunSmith1_basic

But it cost Millions to actually develop one.

I think he's comparing that to making a console...

i dont think so. I think he means the pennies it takes to press a disc

He's saying that if you look at the materials that it takes to make a game CD, it is not much at all. But, if you saw the whole picture, you would see the gigantic team of people being paid hourly wages, the resources it takes, and the advertisement behind the label of each game. There is much more than plastic and magnetic paper (or whatever CDs are made of) in that game. Just like with a console, there was a team that made it, advertisements had to be made, and lots of jobs depend on each sale. Nintendo making a big profit just means higher wages for their customers, more money being spent on developement, and more money in researching new tech for the next system.

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haziqonfire

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#18 haziqonfire
Member since 2005 • 36392 Posts

$200 probably, so 50 dollar profit.

Pretty good pricing method.

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PeterTimpa

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#19 PeterTimpa
Member since 2005 • 2509 Posts
well I have heard the Wii mote cost about $4 to make . I think the Wiimote was about 2.50 and the numbchuck was 1.50
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htekemerald

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#20 htekemerald
Member since 2004 • 7325 Posts
Well take the manufaturing price of an xbox and add the 10 bucks it costs to make the Wiimote and nunchuck. And the 3 cents it cost to make wii sports.
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alecsuba

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#21 alecsuba
Member since 2005 • 2717 Posts

Based on the Console production Cost Breakdown Fortune magazine did Nintendo makes 50 Dollars on every North American Wii Sold.

Now that means a few things. They also Said it cost roughly 15 dollars to make the wiimote and nunchuck.

So if they make 50 dollars total on cosole and controller and controller nets a total of 35 dollar profit the console cost about 200 dollars to make. Nintendo really isnt making a profit so much off the console as they are the controller packed in with it.

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SA--X

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#22 SA--X
Member since 2007 • 340 Posts

Well take the manufaturing price of an xbox and add the 10 bucks it costs to make the Wiimote and nunchuck. And the 3 cents it cost to make wii sports.htekemerald

Clever... I bet you are in a gifted program.

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foxhound_fox

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#23 foxhound_fox
Member since 2005 • 98532 Posts
http://kotaku.com/gaming/wii/wii-autopsy-discovers-manufacturing-cost-221736.php

The Wii has been cracked open, its entrails spilled, its blood consumed and its organs dissected, categorised and sold off to the highest bidder. The market value for each is as follows:

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

If these guys have done their sums right, Nintendo are making just under $40 profit on every Wii sold. At such an early stage of the consoles development, and with sales so healthy, that's good news for anyone at Nintendo that's involved in the counting, or spending, of money.


And just for the heck of it... http://arstechnica.com/news.ars/post/20061116-8239.html

"iSuppli estimates that the more expensive $599 console costs $840.35 to build, leaving Sony with a $241.35 loss on each console..."

I would have to say that for a company that has nothing left to fall back on. $40 profit is quite reasonable.
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SA--X

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#24 SA--X
Member since 2007 • 340 Posts

I would have to say that for a company that has nothing left to fall back on. $40 profit is quite reasonable.foxhound_fox
I forgot about that.
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alecsuba

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#25 alecsuba
Member since 2005 • 2717 Posts

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

The Wii has been cracked open, its entrails spilled, its blood consumed and its organs dissected, categorised and sold off to the highest bidder. The market value for each is as follows:

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

If these guys have done their sums right, Nintendo are making just under $40 profit on every Wii sold. At such an early stage of the consoles development, and with sales so healthy, that's good news for anyone at Nintendo that's involved in the counting, or spending, of money.


And just for the heck of it... http://arstechnica.com/news.ars/post/20061116-8239.html

"iSuppli estimates that the more expensive $599 console costs $840.35 to build, leaving Sony with a $241.35 loss on each console..."

I would have to say that for a company that has nothing left to fall back on. $40 profit is quite reasonable.foxhound_fox

especially when you conaider based on current sales Nintendo has made $320,000,000 to $400,000,000 profit already versus Sony at about -$843,500,000 losses

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htekemerald

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#26 htekemerald
Member since 2004 • 7325 Posts

[QUOTE="htekemerald"]Well take the manufaturing price of an xbox and add the 10 bucks it costs to make the Wiimote and nunchuck. And the 3 cents it cost to make wii sports.SA--X

Clever... I bet you are in a gifted program.

Its been said many time that the wii is as powerfull the origional xbox. and the remote and nunchuck are dirt cheap. and dvds make dirt look expensive.
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SA--X

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#27 SA--X
Member since 2007 • 340 Posts
[QUOTE="SA--X"]

[QUOTE="htekemerald"]Well take the manufaturing price of an xbox and add the 10 bucks it costs to make the Wiimote and nunchuck. And the 3 cents it cost to make wii sports.htekemerald

Clever... I bet you are in a gifted program.

Its been said many time that the wii is as powerfull the origional xbox. and the remote and nunchuck are dirt cheap. and dvds make dirt look expensive.

You say it costs 3 cents to develope a game... where do you make games and where should the FBI bust down the front door?
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billbradsky

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#28 billbradsky
Member since 2007 • 370 Posts
You guys do know that Nintendo doesn't get 250 for each console? They sell it to the stores and the stores sell it for 250. If stores mark up 20% then Nintendo is selling the Wii for 200.
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XYZVector

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#29 XYZVector
Member since 2006 • 753 Posts

I'm going to be a non-conformist and say it costs them 251, they are selling at a loss. Ha, you worthess people. You critisize them while they are selling at a loss to better the customer. For shame.SA--X

Subsidizing hardware is great for the customer, as long as the producer doesn't stop making hardware (otherwise it becomes antiquated, i.e. the Dreamcast). Just how long can sony go losing billions on subsidizing hardware?? This is what has me afraid of the sony PS3, also I have invested in sony flop formats, and don't want to loose my money again. i.e. betamax, minidisk, and umd, and those are my personal experiences.

The wii's probably cost about 150.00 to make, and since they are going to produce more, they will be even cheaper to produce. However I don't see nintendo passing on the savings to you why?? When you couldn't find one to save your life, bahh thats why they keep em supply constrained. They don't want to lose out on the Profit$, plus they are still selling them faster than any console has ever sold, in this amount of volume. If M$ undercut the WII I don't think Nintendo would drop the price of a WII, not unless it started to lose momentum. Then they would drop it to like 189.99 or some wierd price like that, and boom momentum would pick up again. Wow did I just speculate that the 360 could be cheaper than a WII going into the holidays.. Wouldn't that ROCK.. a 199.99 360 and PS3 would have to shed at least 100-200 dollars to even think about staying competitive.

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HappySunnGuy

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#30 HappySunnGuy
Member since 2006 • 1265 Posts
wiis cost about 150$ to make. nintendo are selling them at a profit, to make MONEY, which is what smart buisnesses are about.