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

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, 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 moderators, 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 * to your whitelists.

Status updates from C-bloggers

Rad Party God avatarRad Party God
AARRGGGHHHH!!!, GODDAMIT!, fucking SOMA has crashed 3 fucking times in a row and I always lose ~20 minutes of playtime!, playing the same section over and over kinda ruins the tension! >.<'
OverlordZetta avatarOverlordZetta
N-Not that P1 isn't perfect the way she is! Isn't that right sweetie? Yes it... Oh, now don't you go and listen to those P2 fans! They just go around spreading rumors and pretending Hitler was just a handsome gentleman in sunglasses, that's what THEY do!
OverlordZetta avatarOverlordZetta
Persona Q has made me realize I really want a Persona 1 remake on 3DS in a similar style. A lot. A loooooooot. You listening, Atlus?
Super Mario Maker, the announcement of Sonic Lost World for Steam, and remembering all of the mods that got made for the PC version of Sonic Generations makes me wish SEGA/Sonic Team would make their own dedicated Sonic level creation game.
gajknight avatargajknight
Hey, is your fridge running? You better catch it. I mean, it has all your food, and without food, you die. Like, forever. You don't wanna die right? If you die, how will you watch The Good wife with your favourite bowl of Ben and Jerry's ice cream? Go.
CJ Andriessen avatarCJ Andriessen
My local Best Buy is drowning in Marth & Dark Pit amiibo
GoofierBrute avatarGoofierBrute
Spooky yet totally true gaming fact: the bushes and the clouds in Super Mario Bros are the same exact shape. #Spooky
Sr Churros avatarSr Churros
It is coming fast AAAAAAH
Fuzunga avatarFuzunga
The newest PS4 update finally got rid of that bug where I'd get the "you can customize your power options" message every time I turned on my console!
El Dango avatarEl Dango
Should I just pass on MGSV? I haven't really liked any of the games after Snake Eater, and it's being used as a money sink at the moment.
Mike Martin avatarMike Martin
[Youtube][/youtube] All the episodes are on youtube now. Also I never knew they got to do a season 3. Pretty cool. Now back to Transformers. Scored a gc to my favorite thai place too. Pad ahoy bitches. It's been too long.
ashamasha avatarashamasha
i have almost all the pieces i need to build my own Arcade machine... and the last one arrive this Saturday! Soon, one my childhood dream will became true!
RadicalYoseph avatarRadicalYoseph
Interviewer: Konami, why are you selling cosmetic DLC for MGSV? Konami exec: I breathe through my skin.
RadicalYoseph avatarRadicalYoseph
What is the Dtoid chat room?
TysonOfTime avatarTysonOfTime
Batthink avatarBatthink
This GrumpOut video was pretty funny to me (props to TheBadSpoon on the Dtoid chat room);
CoilWhine avatarCoilWhine
Sonic Lost World is coming to PC on November 2nd for $25! I may double dip, hopefully they'll make the final boss less rage-inducing. Ah well, I can always grind for extra lives lol.
Mike Martin avatarMike Martin
Older. Grayer. Wiser. Dick still works. #Ballin
FlanxLycanth avatarFlanxLycanth
Wow I just want a mic for the PS4...why are they so expensive ;_;
ikiryou avatarikiryou
Went to play MGSV, got prompted to download the MGO data; it's not on the PS Store yet. Or maybe it's Kojima-san's way of telling me it's not the real MGO data, but is instead a janitor who once protected me from a puddle of pee and now wears my face.
more quickposts



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 -