Wii costs 45% less to make than at launch

[Queasy]

VGChartz notices a blurb at the bottom of an article in the Financial Times about the production costs for the Wii dropping 45%. That's about $137.50 for each Wii.

This is interesting to note because Nintendo recently announced that they were raising the cost of the Wii to retailers in Europe because of the Yen-Euro exchange rate.

Of course, as long as the Wii is selling like crazy, Nintendo doesn't have a reason to drop the retail price of the Wii.

Screen Digest questions the analyst who made the 45% claim.

Ed Barton, games analyst for Screen Digest, tells Edge that it?s practically impossible to accurately analyse how much a console?s manufacturing costs have been cut. ?No one outside of Nintendo knows how much the company pays for all its components,? he says.

He did state, however, that the Wii is not made up of cutting-edge or scarce components, such as a Blu-ray diode, but in fact relatively common components which Nintendo has been able to order in bigger volumes.

?It?s a reasonable assumption that manufacturing costs have dived a bit,? he says, ?yet the effect of a cut in manufacturing costs hasn?t exactly shown up in Nintendo?s recent financial results.?

Here, Barton is referring to Nintendo?s financial posting back in January [pdf], where the company reported a sharp profit decline of 18 percent due to the strong Yen which has stung Japan?s export trade.

Nintendo also expected its net income to shrink from previous projections,? ?down from? ?$3.8? ?billion? ?to? ?$2.55? ?billion?; ?down a third on original expectations and? ?falling? ?over? ?10? ?percent year-on-year.

?Now, if Nintendo has managed to cut its manufacturing costs so dramatically, like down 45 percent over the two years since launch, then I?d suspect we?d be seeing these negative results partially offset.?

Barton adds that, if a lifetime reduction in manufacturing costs is anywhere near the 45 percent mark, then the impact of this will be obvious in Nintendo?s operating profits during its next quarterly financial posting.

?Also, given that Nintendo has just raised the trade price, I think a company flip-flopping on prices so quickly would not demonstrate the most confidence in what one is doing in the marketplace,? Barton adds. ?Maybe it could happen in Japan, if supply has truly equalled demand.?

Analyst fight!

 

[BassBomb]

wiiiiiiiiiiiiiiiii

Its almost like Apple in terms of fad style!

When any little kid wants a Wii and nothing else its pretty interesting

 

[RyanPaulShaffer]

Anyone who buys a Wii is a sheep. They're paying $250 for a GameCube with Waggle controls.

The Wii would be a fine purchase for $150. But $250 is absurd. Luckily for Nintendo, the vast majority of people aren't very smart!

 

[Kabob]

Originally posted by: RyanPaulShaffer
Anyone who buys a Wii is a sheep. They're paying $250 for a GameCube with Waggle controls.

The Wii would be a fine purchase for $150. But $250 is absurd. Luckily for Nintendo, the vast majority of people aren't very smart!

No offense, but that's a bit biased. I'm 100% happy with my purchase (well, I didn't buy it at retail price but still) ONLY because it's the FIRST EVER video game console my wife has enjoyed. That right there makes it worth it, I can actually play games with her!

Value is in the eye of the beholder.

 

[RyanPaulShaffer]

Originally posted by: kabob983

Originally posted by: RyanPaulShaffer
Anyone who buys a Wii is a sheep. They're paying $250 for a GameCube with Waggle controls.

The Wii would be a fine purchase for $150. But $250 is absurd. Luckily for Nintendo, the vast majority of people aren't very smart!

No offense, but that's a bit biased. I'm 100% happy with my purchase (well, I didn't buy it at retail price but still) ONLY because it's the FIRST EVER video game console my wife has enjoyed. That right there makes it worth it, I can actually play games with her!

Value is in the eye of the beholder.

None taken. I understand where you're coming from. I guess I should have said "Any gamer who bought a Wii actually expecting good games instead of mini-game Waggle shovelware is a sheep."

Make no mistake...the Wii is bad for the industry. Piles and piles of shovelware. Dumbing down games for the casuals. It is a bad trend, and developers see the $$$ that Nintendo is making, and they want some of the pie. Thus, a universal trend towards dumbing down the game industry.

Besides, I'm not that big into graphics, but seriously, GameCube graphics in 2009? I can't even imagine how bad the Wii would look on my HDTV...probably as bad as my GameCube does, since they are the same thing! :laugh:

 

[Kabob]

Originally posted by: RyanPaulShaffer
Make no mistake...the Wii is bad for the industry. Piles and piles of shovelware. Dumbing down games for the casuals. It is a bad trend, and developers see the $$$ that Nintendo is making, and they want some of the pie. Thus, a universal trend towards dumbing down the game industry.

Once again I take the opposite side, I think the Wii has done WONDERS for the gaming industry. It's taken the typical thought that "next gen = better graphics only!" and changed the way that works. It's gotten people into games that would never have played games. How long did it take Sony and MS to announce that they were both looking into motion sensing controls after they saw the Wii take off? Now both MS and Sony have their own version of the Mii's, etc. The Wii is a winner in every way other than pure graphical power...

 

[Beev]

I bought my Wii for Nintendo games only. I knew it would collect dust for months on end between releases, and it has.

 

[RandomFool]

This thread is a good example of why I stopped posting here.

 

[ivan2]

Originally posted by: RandomFool
This thread is a good example of why I stopped posting here.

just did!

 

[RyanPaulShaffer]

Originally posted by: RandomFool
This thread is a good example of why I stopped posting here.

And yet, here you are...posting...

 

[purbeast0]

Originally posted by: RandomFool
This thread is a good example of why I stopped posting here.

you stopped posting because the wii prints money?

 

[Looney]

Originally posted by: RandomFool
This thread is a good example of why I stopped posting here.

The Wii made you stop posting?

 

[erwos]

Now both MS and Sony have their own version of the Mii's, etc. The Wii is a winner in every way other than pure graphical power...

Well, it also has crappy online play, media support, audio, peripheral support, and storage. In fact, the Wii is basically a loser in every way other than its control system and friendly, Mii-oriented interface. It's a testament to the Wiimote that it manages to overshadow all that, but a total failure to properly invest in the other parts of their console experience is going to come back to haunt them next generation.

I readily admit that the Wii has some rather excellent games, and I own a fair few of them - but the stereotype that non-casual gamers basically leave it sitting collecting dust most of the time is true, and should be worrisome to Nintendo. Microsoft and Sony both have the resources to make their own motion controllers - and casuals would much rather play a pretty version of Wii Sports than a less pretty version.

 

[foghorn67]

Originally posted by: RandomFool
This thread is a good example of why I stopped posting here.

OMG. Drama alert.

 

[RyanPaulShaffer]

Originally posted by: erwos

Now both MS and Sony have their own version of the Mii's, etc. The Wii is a winner in every way other than pure graphical power...

Well, it also has crappy online play, media support, audio, peripheral support, and storage. In fact, the Wii is basically a loser in every way other than its control system and friendly, Mii-oriented interface. It's a testament to the Wiimote that it manages to overshadow all that, but a total failure to properly invest in the other parts of their console experience is going to come back to haunt them next generation.

I readily admit that the Wii has some rather excellent games, and I own a fair few of them - but the stereotype that non-casual gamers basically leave it sitting collecting dust most of the time is true, and should be worrisome to Nintendo. Microsoft and Sony both have the resources to make their own motion controllers - and casuals would much rather play a pretty version of Wii Sports than a less pretty version.

Good post. Like I said, at $150, the Wii would be a good value, since it is literally nothing more than a GameCube with a gimmicky remote. But, $250 for the Wii is highway robbery, and people are buying it hook, line and sinker.

I would like to buy a Wii, because there are a few games (mostly Nintendo) that look promising. However, giving Nintendo $250 for a gimmicky GameCube is a bad sign...it tells them that this is the way video games should go. It is not...just look at the piles and piles of shovelware for the Wii that overflows from the bargain bins into the shopping aisles.

 

[BassBomb]

The reason I never bought one was because of how fast the gimmick fun wears off and the lack of game releases.
Basically the only good games on the wii are by Nintendo themselves and that isn't enough for me.

I instead got a PS3 in 2008

 

[Trader05]

If they are printing money, they are obviously doing something right.

I own one and it sits most of the time. Mainly because I own a PS3 and there are more quality titles to my liking on that system. Graphics are an awesome plus, but for me quality titles is where its at. Its also peripheral whore lol.

 

[mmntech]

The Wii is a nice little system but this just proves how overpriced it is. $270 was alright back when the 360 Core was selling for $299 and the PS3 was still at $499. Nintendo's consoles aren't the good value they once were. Even the DSi, which is selling for $199 here in Canada with no-pack in game compared to the PSP which comes with two at that price, and a movie & 1gb MSPD card. The Wii mostly appeals to non-gamers though, not the likes of us. Like RyanPaulShaffer said, it has an awful lot of shovelware. More so than any other current generation system with maybe the exception of the iPhone. That's what non-gamers like though. They're impulse purchases and they don't know any better in regards to quality and gameplay.

I kind of still want a Wii, though it's mainly the virtual console that appeals to me. If the DSi comes out with something similar, the that will be the final nail in the coffin for my Wii dreams.

 

[nakedfrog]

Originally posted by: RyanPaulShaffer
Good post. Like I said, at $150, the Wii would be a good value, since it is literally nothing more than a GameCube with a gimmicky remote. But, $250 for the Wii is highway robbery, and people are buying it hook, line and sinker.

Are you certain you know the definition of the word "literally"?

 

[gorcorps]

Originally posted by: RyanPaulShaffer

Originally posted by: erwos

Now both MS and Sony have their own version of the Mii's, etc. The Wii is a winner in every way other than pure graphical power...

Well, it also has crappy online play, media support, audio, peripheral support, and storage. In fact, the Wii is basically a loser in every way other than its control system and friendly, Mii-oriented interface. It's a testament to the Wiimote that it manages to overshadow all that, but a total failure to properly invest in the other parts of their console experience is going to come back to haunt them next generation.

I readily admit that the Wii has some rather excellent games, and I own a fair few of them - but the stereotype that non-casual gamers basically leave it sitting collecting dust most of the time is true, and should be worrisome to Nintendo. Microsoft and Sony both have the resources to make their own motion controllers - and casuals would much rather play a pretty version of Wii Sports than a less pretty version.

Good post. Like I said, at $150, the Wii would be a good value, since it is literally nothing more than a GameCube with a gimmicky remote. But, $250 for the Wii is highway robbery, and people are buying it hook, line and sinker.

I would like to buy a Wii, because there are a few games (mostly Nintendo) that look promising. However, giving Nintendo $250 for a gimmicky GameCube is a bad sign...it tells them that this is the way video games should go. It is not...just look at the piles and piles of shovelware for the Wii that overflows from the bargain bins into the shopping aisles.

Look, I don't know what the Wii did to make you hate it so much. Maybe it killed your father, or raped your mother or something but you're just spouting opinionated drivel and calling it fact.

Some people/families don't like the complexity of most games on the other consoles. The lego series is pretty much the only really easy to play/fairly casual game on the other consoles. The Wii offers easy to pick up games that the entire family can enjoy. Are there metric fuck tons of bad games for it? Absolutely, but only somebody who has been gaming all of their life will notice how bad it really is. People new to games won't care, just as long as it has their kids' favorite cartoon character in it they'll love it.

Also you can't rag on it too much for not updating the graphics by much. Nintendo was so innovative with the controls that they didn't have time or money to dedicate to blazing fast hardware AND intuitive new controller.

 

[bunnyfubbles]

Originally posted by: gorcorps
Also you can't rag on it too much for not updating the graphics by much. Nintendo was so innovative with the controls that they didn't have time or money to dedicate to blazing fast hardware AND intuitive new controller.

They were also in last place with the GC vs. PS2 and XBox and many analysts were predicting that if the Wii didn't improve sales that it would be Nintendo's last home console.

They simply couldn't afford an arms race with the then leader Sony and juggernaut Microsoft.



Now that they are rolling in the money, it will be interesting to see what they do. Before their stance of targeting a broader spectrum of gamers made perfect sense (they simply couldn't afford to put out the same old console and hope to compete) and that strategy has certainly paid off, but there is obviously the hardcore group that they had to unfortunately neglect. Whether they choose to simply let Sony and Microsoft have that market will be interesting to see. I don't think they can afford to though, as both Sony and Microsoft are clearly aware of the huge market Nintendo has free reign in and are certainly going to try and take their share of that pie.

 

[erwos]

Originally posted by: gorcorps
Look, I don't know what the Wii did to make you hate it so much. Maybe it killed your father, or raped your mother or something but you're just spouting opinionated drivel and calling it fact.

I feel I could easily make a conclusive case that my opinions about the Wii's failures are justified. Is Nintendo paying you for this spirited defense, or are you just doing it because you're a fanboy?

Ultimately, it's all opinions. You're just taking massive offense at ours, for whatever reason.

Some people/families don't like the complexity of most games on the other consoles. The lego series is pretty much the only really easy to play/fairly casual game on the other consoles. The Wii offers easy to pick up games that the entire family can enjoy. Are there metric fuck tons of bad games for it? Absolutely, but only somebody who has been gaming all of their life will notice how bad it really is. People new to games won't care, just as long as it has their kids' favorite cartoon character in it they'll love it.

I don't even begin to see how this is relevant to what I wrote. I very much agree with this. I am saying that you can't ride success forever, as they found out very quickly with the N64 and Gamecube. You have to invest in your future, and it seems as if Nintendo didn't invest all that much in the Wii - they just managed to get a spectacular ROI on what they did invest.

Also you can't rag on it too much for not updating the graphics by much. Nintendo was so innovative with the controls that they didn't have time or money to dedicate to blazing fast hardware AND intuitive new controller.

The Wiimote is _not_ using break-through technology that cost zillions of dollars to develop. They put some gyroscopes, a speaker, an IR receiver, and a Bluetooth chip into a controller and tied it all together. If you think that's anything comparable to what Sony and Microsoft invested in their consoles, I have a bridge in Brooklyn to sell you. It's astonishing how overhyped the Wiimote is - it's a great piece of integration work, but it's nothing particularly new when you look at the components.

Ultimately, the Wii is riding on a motion controller, and that motion controller can be easily duplicated. I will be curious to see what their next big thing for the Wii 2 will be.

 

[Dari]

So much hate on the Wii yet people keep buying it. From a business perspective, I call it the winner. I, for one, enjoy my WiiSport and I hope to see more games like it, but haven't. Maybe it's the third party developers that's the problem and not the Wii per se? Perhaps time will let them get better at making bette games for the system.

 

[Trader05]

Ultimately, the Wii is riding on a motion controller, and that motion controller can be easily duplicated. I will be curious to see what their next big thing for the Wii 2 will be.

Well the obvious will be HD and probably a HDD. I think instead of going to a bluray media, they will probably go through something prepriatory like the dreamcast did.

 

[Naeeldar]

Originally posted by: Trader05

Ultimately, the Wii is riding on a motion controller, and that motion controller can be easily duplicated. I will be curious to see what their next big thing for the Wii 2 will be.

Well the obvious will be HD and probably a HDD. I think instead of going to a bluray media, they will probably go through something prepriatory like the dreamcast did.

Doubtful. It's obvious now that propietary hurts in the gaming industry. In fact outside of Apple I'd say no company out there truly does well with propietary based stuff.

Next generation is a ways away. I doubt anybody can predict just which way it will go.

One thing is for sure though is that we'll probably see some major changes. Sony for instance can't afford another slow start and nintendo will make some pretty big changes in an effort to not lose the market share they gained.

MS..... well they will continue to throw money into the division in an attempt to control the market. Who knows what that means for the next version of the XBOX.