Wii Costs Nintendo $158 to Make

December 18th 2006 | Games Consoles

In stark contrast to the estimated $200+ loss on every PS3 and Xbox 360 console sold, Nintendo is reported to be making around $40 for each Wii it sells – and the company expects to ship 4 million of them by the end of the year:

Nintendo may well be making so much profit on its Wii console it can well afford to replace broken Remote straps. According to a Japanese publication’s assessment of the machine’s innards, the console costs the videogames company less than $160 to assemble.

The Toyo Keizai estimates that Nintendo’s wholesale price is a cent less than $196. The consoles costs the consumer – if he or she can find one available to buy right now, of course – $250. So, if the Toyo Keizai is right, Nintendo’s making the best part of $40 for every console it sells, and by most accounts it’s sold well over a million of them worldwide.

Reg HardwareNintendo said to profit on Wii production

With the way that Nintendo currently sells it, the costs for the Wii Remote, Nunchuk and Wii Sports would bump that number up. Assuming wholesale prices on the controllers and the cents it costs to press a DVD, Nintendo could be making around $40 on every unit. This is in stark contrast to the Sony and Microsoft model: analysts estimate $240 to $300 are lost on every PS3 sold, and another $200 lost on the Xbox 360.

Daily TechWii Costs Nintendo $158 to Make

Wii Costs Nintendo $158 to Make
Published in: Games Consoles on 2006-12-18