Note: iOS 9 + Facebook users w/ trouble scrolling: #super sorry# we hope to fix it asap. In the meantime Chrome Mobile is a reach around
hot  /  reviews  /  videos  /  cblogs  /  qposts

CNN estimates the cost of Wii U's parts to be $228

10:00 AM on 03.23.2013 // Tony Ponce
  @megaStryke

But Nintendo is still losing money on each unit

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.

How Nintendo loses money on every Wii U [CNN Money via Wii U Daily] (Thanks, Tito!)



Tony Ponce, Former Contributor
 Follow Blog + disclosure megaStryke Tips
(Decommissioned) Super Fighting Robot more   |   staff directory



 Setup email comments

Unsavory comments? Please report harassment, spam, and hate speech to our community fisters, and flag the user (we will ban users dishing bad karma). Can't see comments? Apps like Avast or browser extensions can cause it. You can fix it by adding *.disqus.com to your whitelists.

 Quickposts
Status updates from C-bloggers

Jinx 01 avatarJinx 01
Sonic the Hedgehog movie coming in 2018... hopefully it's one of those "so bad it's good" movies at least. http://mynintendonews.com/2016/02/10/sonic-the-hedgehog-movie-confirmed-for-2018/
Shinta avatarShinta
Daniel Bloodworth from GameTrailers posted a neat retrospective of his time at the website. http://www.neogaf.com/forum/showpost.php?p=194778459&postcount=3290
Shane Botwin avatarShane Botwin
The internet is so good, gives people without any power in real life a sense of purpose. Such as the Dtoid mod arbitrarily deleting my comments because I dislike the shit they like. "This will show him who's boss here", lol, impotent nerd.
Sr Churros avatarSr Churros
The new artificial Pokémon is my waifu
Pixie The Fairy avatarPixie The Fairy
Off to the new job shortly. Dunno if it's something I want long term, but I can't complain about the money. New laptop, phone, and consoles could be weeks away :D
JohnSmith123 avatarJohnSmith123
http://destructivecreations.pl/isdefense/ /Hatred devs really like the controversy I guess.
The Dyslexic Laywer avatarThe Dyslexic Laywer
Is it too late to write about the waifu wars? I don't really have one but there is a female character I have in mind that I want to talk about.
StriderHoang avatarStriderHoang
Bayo has high execution barrier and largely unsafe moveset but Witch Time is a huge saving grace. I bet people are double bitter with Corrin being in the game and being pretty reliable in terms of skillset. Definitely a safer and stronger choice than Bayo
Jed Whitaker avatarJed Whitaker
Streaming some Unravel then perhaps some Firewatch. Don't not come. [url]http://twitch.tv/Jed05[/url]
Agent9 avatarAgent9
Just got my Wind up Ifrit minion. I couldn't sell it, it was too adorable.
Agent9 avatarAgent9
Just got my Wind up Ifrit minion. I couldn't sell it, it was too adorable.
Parismio avatarParismio
I was playing Third Strike on PS3 with my PS4 controller and I tried using the dpad for the first and noticed that it doesnt take corner directional inputs. Is this normal for ps4 controllers on ps3?
Larxinostic avatarLarxinostic
I swear, it makes sense in context..... Kinda. Hmmm. Okay, not so much. [img]http://i.imgur.com/YhIzmYN.png[/img]
Agent9 avatarAgent9
Almost done with my Waifu wars blog. pretty happy with how it turned out.
SeymourDuncan17 avatarSeymourDuncan17
Time to scream and shout. It's Nanako cosplaying as her big bro! <3
Mike Wallace avatarMike Wallace
Bernie Sanders vs. Donald Trump is like Gandalf the White vs. Handsome Jack.
Sir Shenanigans avatarSir Shenanigans
Skellige is so cool! It's like the land of Valhalla Rising.
Torchman avatarTorchman
http://gonintendo.com/stories/251840-fire-emblem-fates-petting-mini-game-is-in-game-but-only-availa I THOUGHT THIS WAS GONE. MAKE UP YOUR DAMN MINDS PEOPLE
Shinta avatarShinta
God damn, Bernie Sanders is just killing it with this speech. Hitting basically every point. He even used the word "oligarchy." Probably the first time I've ever heard that word uttered on CNN. I think a lot of people in power are shitting their pants
Pixie The Fairy avatarPixie The Fairy
In my haste to finally factory reset my tablet, I erased a blog I had worked on. Thankfully, it's fresh in my mind. It's another MGS blog, but it goes the opposite way of my last MGS blog. Pray this guy is not your husbando, for he is shit.
more quickposts


Contest!


Seriously

Invert site colors

  Dark Theme
  Light Theme


Destructoid means family.
Living the dream, since 2006

Pssst. konami code + enter

modernmethod logo



Back to Top


We follow moms on   Facebook  and   Twitter
  Light Theme      Dark Theme
Pssst. Konami Code + Enter!
You may remix stuff our site under creative commons w/@
- Destructoid means family. Living the dream, since 2006 -