[Luca Rescigno]

Um... how can you just make up numbers completely out of the blue and then try to make assumptions based on them?

I have no idea how much the Wii costs to make but I'm certain they're selling it for a profit. I also heard that the 360 is being sold for a profit now too, though I'm sure the margin is less than on the Wii. The PS3 is probably still losing money.

This is what I've heard, but I don't know how much each one makes or loses, so I can't really say anything.

I will however agree with you that as long as Nintendo is making tons of money, they shouldn't need to change anything. If and when their sales start to fall off, then they can start adding some value to the Wii, either through a modest price cut, a bundle deal, or something else.

[Zeeb]

According to the Financial Times the profit margin on the Wii console ranges from $13 in Japan, $49 in Europe, and $79 in the U.S. I'm not sure how credible this source is.

I have an HDTV with 1080p and I've seen true HD content--SD content on my TV is very noticeably different although watchable. However, the Wii games I've played on my TV don't look bad at all. A SD game doesn't look nearly as bad as a SD broadcast for some reason. Then again, PS3 games look absolutely beautiful and I'll be picking one of those up when the wallet allows!

I think Nintendo's focus on immediately playable games with a very creative controller is just what a segment of an underserved market needed. I really don't think it will threaten the type of game development that goes on for platforms like the PS3 and Xbox either. In fact, I think the Wii could serve as a gateway product to the more advanced gameplay that those systems offer. In order to hold on to those customers, Nintendo just might come out with more advanced hardware/games itself.

[Dakar the Fourth]

Originally Posted by Zeeb 

According to the Financial Times the profit margin on the Wii console ranges from $13 in Japan, $49 in Europe, and $79 in the U.S.

"What the hell, man?"

[SamoanDude]

Nintendo has never been graphic whores

[Dakar the Fourth]

Originally Posted by SamoanDude 

Nintendo has never been graphic whores

Someone forget the FX chip?

[analogue SPRINKLES]

Originally Posted by SamoanDude 

Nintendo has never been graphic whores

They tried to be with the NES, SNES, N64 and the GC so what you talking about?

[Chuckit]

Originally Posted by Zeeb 

According to the Financial Times the profit margin on the Wii console ranges from $13 in Japan, $49 in Europe, and $79 in the U.S. I'm not sure how credible this source is.

This would seem to imply that producing the Wii is seven times as expensive in Japan (since the price is roughly the same as in the US). Why on earth would this be?

[ajprice]

Originally Posted by Luca Rescigno 

Um... how can you just make up numbers completely out of the blue and then try to make assumptions based on them?

I took the +$5 and -$200 from the couple of posts above mine, then multiplied those out to a million. Never said it was a scientific study.

As for making stuff up and making assumptions, this is the MacNN forums, isn't it?

[Dakar the Fourth]

Originally Posted by ajprice 

As for making stuff up and making assumptions, this is the MacNN forums, isn't it?

But it's not the PL.

[Luca Rescigno]

Originally Posted by Chuckit 

This would seem to imply that producing the Wii is seven times as expensive in Japan (since the price is roughly the same as in the US). Why on earth would this be?

Huh? How did you get the 7x figure?

Assuming the actual purchase price is the same (close enough - 25,000 yen is $245), it means the Wii costs Nintendo $171 per unit to market, build, and sell in the US vs. $237 in Japan. That makes sense, I guess, given how expensive everything is in Japan. So it costs Nintendo about 39% more in Japan, not 600% more.