The Wii U is the first Nintendo home console to be sold at a loss at launch. I've already spoken to a number of people who are skeptical that such drastically dated hardware could possibly cost so much to make, but that's just the thing -- the hardware is not dated. It's a new machine with new parts, and it so happens that it's not immediately profitable. Why would Nintendo lie to intentionally make itself look bad?
Regardless, it's only natural to be curious about where all that green went. CNN Money wanted to dig a bit deeper, so it had UMB TechInsights tear down a Wii U and estimate the cost of the individual parts. The GamePad alone is valued at $79.25, while the main console comes to $148.25, resulting in an approximate total of $228. You'll notice that's less than the $300 MSRP for the Basic Set.
The thing I don't like about such breakdowns is that they never paint an accurate picture of total expenditure. That $228 total doesn't factor in the actual manufacturing process, pre-loading the OS, packaging, additional pack-in materials, shipping, and so on. Then you must consider that retailers make a profit off of markup, meaning the units are sold to them for less than MSRP. CNN even acknowledges that its estimate doesn't consider the up-front costs of R&D, though that won't stop some people from crying that Nintendo must be screwing them over somehow.
Still, this estimate is not entirely useless. I don't doubt that Nintendo will be able to reduce the costs within a few months, which ought to allow for a healthy amount of breathing room should the need for an emergency price drop arise.
There's also the elephant in the room: the GamePad. A significant portion of the Wii U's cost is eaten up just by the controller. Could Nintendo have ditched the GamePad from the get-go and used the extra money to beef up the core hardware? Would it have been a better idea to try to match Sony and Microsoft on features at the risk of producing a console indistinguishable from the competition? Those are questions I'm sure many of you will lob around as long as the Wii U remains struggling.
Nekrosys Digimon Story: Cyber Sleuth has cat-maids. It has cat-maids. Have I sold you yet? Cat. Maids. GOTY 2016.Robo Panda Z Just a quick update, that you all should go Greenlight Hustle Cat, the magical cat dating simulator that is being released soon. Work in a cat cafe, date magical cats, be whatever gender you want - there is no downside!
Also I'm alive, That's importaRad Party God What a damned good song. I'm very excited about Mick Gordon composing for DOOM =Dtrippytip War not waifu lovers~ Must there only be one waifu? Why not have all the waifu? I enjoy my waifu like Lou Bega here.Jinx 01 So is the plural of waifu "waifus" or just "waifu"? I want to make sure I have it right when referring to my harem.Sr Churros *Someday last week*
Oh, so Toby Fox also made music for Homestuck. I guess I should read it
Fuck it is 3:30 AM I have to wake up early tomorrow why I'm still reading this it is already chapter five someone help me pleaseNekrosys Holy shit, App Store. The copyright infringement is real. I didn't buy it, because I'm scared it'll make my iPhone explode and because the comments say the game's a generic zombie title with fake and misleading screenshots.Torchman Pretty much in a nutshellGamemaniac3434 Image of Myxococcus colony rising up after being submerged. I love bacteria so damn much you guys. Nick R P Green Made a quick REACTion video to some of today's news storys. Hope nobody REACTs to it with a lawsuit.Dreamweaver Playing Halo 5: Guardians, got REALLY invested in this one match. It was intense from beginning to end and I was using A LOT of Power Weapons because it was so fun. We were literally seconds away from victory when the internet cut off. So disappointed. :(Amna Umen Streaming Civ V with a few of my friends. Twitch.tv/amnaumenRetrofraction I must be in a weird mood, want to buy SMS games :3KingSigy How the fuck does Link tie his scarf? I really want to wear mine that way.LinkSlayer64 As I recently mentioned I picked up Madworld, I also have acquired Pikmin, Red Steel and DJ Hero2 for Wii. For DS Feel the Magic XY/XX, N+ (shitty port I might add) Sonic Chronicles: The Dark Brotherhood, and Some Suda51 I already misplaced :/ooktar Bought Firewatch this morning, played about 2 hours and started to get really invested into the story until I hit a bug that won't allow me to progress. :(The Dyslexic Laywer Fuck it. Fuck Blighttown. Fuck it's poison blow dart campers. Fuck the mosquito freaks. Fuck the fire-breathing bitches. Fuck the lack of visibility. Fuck it's pitfalls. Fuck the fact that I'm going back after 5 minutes of self-loathing.KnickKnackMyWack You know what the weirdest part about having selective hemophobia is? Getting freaked out by an anime like Elfen Lied but being 100% fine with shit like this. StriderHoang Nobody told me the boxed version of Revelations 2 lagged to shit. I was lucky to exchange it for Xbox money.Nathan D Objectively the best part of Heat.