Japanese site Toyokeizai
Online has a piece on the looking at the new consoles, with a distinct
focus on the Nintendo Wii. The publication’s tear down of the console revealed
parts from Broadcom, Qimonda, Samsung, Elpida and of course IBM and ATI. A
Foxconn PCB print was found inside the console, pointing to the manufacturer. More
interesting, however, is the tally for the cost of the components that make up
the Wii.
While already at a rock-bottom selling price relative to its
competitors, Nintendo has admitted that it is making a profit off every Wii
sold, which is definitely something Microsoft and Sony cannot claim when they
launched their consoles. After going through the Wii’s innards, analysts estimate a total of
$158.30 is what Nintendo is paying for each console. See the chart below:
|
Part
|
Price in dollars
|
|
Graphics chip
|
29.60
|
|
CPU
|
13.00
|
|
DRAM
|
7.80
|
|
Optical disk drive
|
31.00
|
|
Power supply
|
11.30
|
|
Assembly cost
|
19.50
|
|
Cost total
|
158.30
|
That breakdown is just for the machine itself. 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.