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Nintendo said to profit on Wii production

Consoles costs under $160 to manufacture?

Internet Security Threat Report 2014

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.

In a report published by Japanese business weekly the Toyo Keizai and relayed by Japanese-language site WiiInside, the most expensive component inside the Wii is the DVD drive, which, the paper estimates, costs $31. Next comes ATI's 'Hollywood' graphics chip, at $29.60. The IBM-designed and made CPU, 'Broadway', costs $13, the report reckons.

Add these items to the other components, roll in an assembly cost of $19.50 and you get a manufacturing cost of $158.30. 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.

Don't forget, though, it has to cover the development cost, the money spent creating the Wii's on-board software, and the physical distribution and marketing costs, but it nonetheless establishes a nice pattern for Nintendo, which does very nicely out of games sales, whether Wii-specific titles or older ones made for previous consoles that the company can now sell again as downloads. ®

Read Reg Hardware's Nintendo Wii Review here

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