Friday, December 15, 2006

True Cost of a Wii

the Wii costs $158 bills to manufacture, not including the Wiimote and nunchuk). These guys take the spotlight to the console, shining its bright light into the various nooks and crannies of the system to find the total value of each of its parts, finally coming up with cost calculations for each component. Turns out, according to their findings, Nintendo is making around $40 bucks a console. Way to go Nintendo ...
  • 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
And so it turns out that the Wii is the only profitable system out of the box! the 360 costs about 550 to produce and the PS3 cost are about 1k each putting the companies in the red from the get go and expecting to make profit on the games. This is one more reason why I think the Wii has the Best Business model out of the three!

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