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Tuesday, April 10, 2012

Rumor: The Wii U Will Have $180 of Parts and Cost No less Than $300 Retail Price

According to the Canadian website Forget The Box, "sources closely involved with manufacturing and distributing Nintendo products" revealed to them the Wii U will have $130 of parts and the controller will have $50 of parts (a grand total of $180 of parts for both the Wii U and the controller) and will cost no less than $300 retail price.

Once again most of the media is acting like this is confirmed and (since they believe it's confirmed) that Nintendo is greedy for making the retail price $120 more than what they are paying for parts. They're forgetting that there's also the manufacturing cost, the accessories included with the Wii U (power cords, charging cradle for the controller, manuals, etc.), packaging, and transportation to the store.  All that should add an extra $20-$30 to Nintendo's cost. Then the store probably gets about $50 of the profits, so in the end Nintendo only profits approximately $45 per Wii U sold.

I think this rumor is fake and that the Wii U will have a retail price of $350.  I think it will cost $280 all together (including the console and controller parts, the manufacturing cost, the accessories, packaging, transportation to the store) to make.  As a side note, to all the people who care a lot about graphics, $280 is enough for Nintendo to make a console as good at playing graphically intensive games as a $600 gaming computer is.  That's because they get all the parts inexpensively, and the Wii U has one main purpose: to play games.  If you also include that the store gets approximately $50 of the profits, Nintendo still gets approximately $20 per Wii U sold. Remember that's just my theory; it won't be until E3 in June before we can know for sure.

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