Nintendo have done something that no other console for a long time has managed to do. Yes Nintendo are making money on each console they sell. The general idea with console systems is that they sell for a loss but make the money up buy selling rights to being able to make games, which means company’s like Microsoft lose money every time you buy one of there console systems. However Nintendo have created a console that does not lose money buy makes it! Japanese economic site, Toyokeizai broke down the costs to make a Nintendo Wii and came out with (and this should be seen as a rough guide and is no way published by Nintendo)
Graphic tip/chip 29.60
CPU 13.00
DRAM 7.80
Optical disk drive 31.00
Power supply 11.30
Production cost 19.50 (with the half price of PS3 editorial staff calculation)
Cost total 158.30
With the Wii costing around $200 dollars it seems they are making money, granted this does not include anything such as Marketing, transport and retail profits but it clearly shows Wii is making more than any other console on the market. Nintendo have clearly planned the console well and the fact they are making money can only help R&D at Nintendo labs. Look out for some more amazing things from from Nintendo.
Filed Under Buy Wii Hardware, Buy Wii Talk
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