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Wii U costs Nintendo $180 to manufacture: Report

Wii U cost
According to sources close to the manufacturing and assembly of the upcoming Wii U, it costs Nintendo an estimated $180 to manufacture each Wii U console including the controller). The Wii U controller is said to cost $50 to manufacture.

This is according to a rumor that originated on ForgetTheBox, where an unnamed source said that Nintendo is doing everything to cut the costs of the console, and that the company is determined to make a profit on each Wii U sold. The profit part makes a lot of sense: despite pricing the Wii aggressively since its launch in 2006, Nintendo has always made a profit on each console sold. Unlike other console makers like Sony and Microsoft, who took large losses in the beginning.

The rumor also mentions that the Wii U will indeed be getting an NFC chip, something we reported last year. The NFC chip costs Nintendo about $5 to implement, while the 1.3 megapixel camera in the controller costs $6.

Our take: it’s an “unnamed source”, so we can never be sure of these reports. However, the $180 price tag does not include royalties and licenses which Nintendo will have to pay out to other companies for technologies such as Blu-ray, WiFi, HDMI, etc. When taking into account packaging and distribution, these costs can easily push the total cost of the console to $200. With the various taxes and retailer fees included, Nintendo could arguably launch the Wii U at $250 with a tiny profit margin, or at $299 with a much larger profit margin. Previously, we reported that the Wii U would retail at $299.

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  • DeadEmo

    can you find out how much the games r going to be ?

    • alienfish

      I wouldn’t be too worried about that. They’ll probably follow the model that they have been and base the price on the development costs. It wouldn’t surprise me if they raised the bar to $60 though since the AAA games being produced will be of similar quality to Xbox 360 and PS3 games and require that much more time and money to polish.

  • Adam

    However, the $180 price tag does not include royalties and licenses which Nintendo will have to pay out to other companies for technologies such as Blu-ray, WiFi, HDMI, etc.

    Nintendo won’t have to pay for licensing for Blu-ray, because the Wii U won’t have Blu-ray, Nintendo is using their own disk format. Just pointing that out :)

    • alienfish

      Even if the $180 covers the entire manufacturing cost, there is still the entire distribution process and advertising which will drive the cost even more. I’m sure there’s also other fees and hoops for Nintendo to jump through as well. I for one, will be happy if I can buy this for $300.

  • Your mom

    $180 to make the console or the remote? Or both of them combined?

  • DemonRoach

    Explains why the Wii U is such a cheap piece of crap.