Nintendo Corp., a leading producer of game consoles, may be earning money from selling Wii game console, according to a report by a Japanese news-paper. Apparently, the total bill of materials of the new game console is just about $160, which is dramatically lower than the manufacturing cost of consoles like PlayStation 3 or Xbox 360.
Toyo Economics TK news-paper has published teardown analysis of the Nintendo Wii game console, according to which each unit of the game machine costs Nintendo as much as $158.3. The news-paper states that ATI-developed code-named Hollywood graphics processor costs $29.6, IBM’s custom Broadway microprocessor takes $13 to be delivered to Nintendo, $31 is paid for Matsushita-made optical disc drive, memory array costs $7.80 and power supply unit stands at $11.30. Nintendo reportedly pays Foxconn Electronics $19.50 for Wii assembly, reports WiiInside web-site.
Nintendo set the recommended retail price of ¥25 000 (about $211) in Japan, $249 in the U.S. and €249 ($325) in Europe, which means that the actual price of the console may exceed the bill-of-materials cost by up to two times, implying that the company may make profits on its hardware, something unusual in the game console business.
So far Nintendo shipped over 1.3 million of its Wii game consoles worldwide.
Nintendo Wii console features IBM’s custom PowerPC architecture-based microprocessor named Broadway clocked at 729MHz and code-named Hollywood chip with built-in graphics core, DSP and I/O features from ATI that operates at 243MHz, earlier reports suggested. Nintendo Wii uses 91MB of memory in total: 23MB of “main” 1T-SRAM, 64MB of “external” 1T-SRAM and 3MB texture buffer on the GPU. Nintendo’s Wii does not feature a hard disk drive, instead, it boasts with 512MB of flash memory, but the console will also have a card reader, which will allow installing more memory. Nintendo Wii has estimated retail price of £179 (€249), bundled with Wii Sports.
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Discussion started: 12/15/06 10:29:37 AM
Latest comment: 09/02/09 02:22:11 AM
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[1-7]
1.
Wii already knew they were so what.
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Posted by: tom

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Date: 12/15/06 10:29:37 AM]
2.
"Nintendo Corp., a leading producer of game consoles, may be earning money from selling Wii game console, according to a report by a Japanese news-paper."
Reggie Fils-Aime reported that they were going to make a profit on the very first console sold. This was said before the Wii came out.
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Posted by: Jiran

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Date: 12/15/06 12:30:14 PM]
3.
How much do the controllers cost to manufacture?
Wii-mote? $20?
Nun-Chuck? $5?
Classic? $7.23?
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Posted by: cheeseman

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Date: 12/15/06 08:06:58 PM]
+ expand thread (1 answer)
- collapse thread
I prefer iSupply's breakdowns. They have nice charts with detailed component costs for EVERYTHING :).
I find it odd that Nintendo pays $34 bucks for a DVD ROM Drive.
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Posted by: MonkRX

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Date: 12/16/06 09:15:33 AM]
4.
Nintendo is becoming like Apple ;(... I hate apple and i am starting to hate Nintendo also. the controller price is outrages in australia $100 for wii mote and wii controller. $30 for Wii classic controller. $110 for 3rd party games and $100 for 1st party games. $399 for Wii. We are paying 30% to 50% extra on almost every wii product than American or Japanese customers are.
XBOX 360 ends up cheaper in Australia when you buy everything you need to enjoy the system.
[
Posted by: Panther_V

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Date: 12/21/06 08:44:13 PM]
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[
Posted by: smith

|
Date: 02/26/07 04:48:26 AM]
6.
dis corn h gvxg hbnvgd nx bhnxbhv h
[
Posted by: sghgh

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Date: 05/25/08 10:08:33 AM]
7.
Based on the article at,
http://coffeewithgames.bl...09/08/analyzing-cost.html, the current cost in 2009 to manufacture a Wii with everything in the box, should only be about $108.
[
Posted by: coffeewithchess

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Date: 09/02/09 02:22:11 AM]
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