Nintendo Wii Manufacturing Costs Down 45%

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stridervm

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Wow, Nintendo has really gotten the jackpot this generation. Very low expenses, high profit and even timed with the global financial Crysis (Hehe.) that people won't be so inclined to spend very much.

All the while Sony could still be bleeding cash in every PS3 sold.
 

thedipper

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I don't think 45% cost reduction is too far off from most high-selling products that have specialized hardware.

With a console, along with other products that keep the same hardware for years, the producing company can eventually start to use lower-nanometer parts, not to mention the general drop in cost of just about everything.


I just think that this cost reduction isn't special, I mean a CPU from 2006 may have cost $300 back then, and be $200, or maybe $100 or less.
 
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Make no mistake, i love the Wii, wish i had one everyday, but the reason i don't is simple: It's too expensive for what it is, i mean, even the first generation Xbox (Albeit chipped) was an excellent media player besides being a rather good gaming console. What does the Wii do besides play games? With relatively poor graphics... However, drop the price from the equivalent of 280 dollars to, say... 150-200? Then i'll buy two! One for every tv in the house, and i'll be happy with the purchase for every single day until they die.
 

lamorpa

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stridervm: Very interesting comments, but I have read these statements before: about 3 inches above where you stated them, in the article that was published. What possible purpose could there be to restate them?
 

nekatreven

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[citation][nom]thedipper[/nom]I don't think 45% cost reduction is too far off from most high-selling products that have specialized hardware. With a console, along with other products that keep the same hardware for years, the producing company can eventually start to use lower-nanometer parts, not to mention the general drop in cost of just about everything. I just think that this cost reduction isn't special, I mean a CPU from 2006 may have cost $300 back then, and be $200, or maybe $100 or less.[/citation]

I'd agree with you about the cost reduction itself. I think the difference is that normally companies start making money when production becomes cheaper...in this case Nintendo just makes more profit than they were already making. It is different in that sense.
 

Fadamor

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Another thing that bodes well for Nintendo is that the Wii is starting to make an appearance in schools as a supplement to PE activities. (There was an article here to that effect a while ago)

The two elementary schools I work at have Wii's with heavy duty DDR platforms to go along with the standard remotes for other activities like tennis and bowling. The teacher uses them when the weather's bad and the kids have to stay in the gym.
 

FlayerSlayer

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For all the talk about the Wii being underpowered, I have to say it's still FUN, which is the point. I play older PC games, Super Nintendo emulators, online flash games, etc because they're fun, even if none of the graphics are bleeding edge. Compare that to PS3 games that might be very very pretty, but only an inch deep and 3 hours long.

A Nintendo Wii with Mario Galaxy, Metroid Prime, Smash Bros, Mario Kart, Twilight Princess, Lego Star Wars, etc can be a heck of a lot of entertainment, and for a lot cheaper than an XBox 360 and its games. Sure, it's not Halo, or Gears of War, or Oblivion, but it's a great system for someone who just wants to have fun with two or three friends.

Nintendo absolutely hit it out of the park this generation with the choice to be different (motion sensing), focus more on fun than graphics, and hit the price sweet spot.
 

tenor77

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Basically in value for your dollar, you're overpaying for your Wii.

Nintendo has to do this though. Sony and MS can count on game sales for profit. Nintedo makes its money on peripherals. Hell they've made peripherals a 4 letter word years ago (power pad, light gun, powerglove), and it hasn't gotten any better. You plunk down money for a cheap piece of crap that is used by two games and gets no support.
 

ehenry818

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Nintendo has been targeting more groups of people who may not be the typical video game player. They have the brain games on nintendo DS for older people to help them keep thinking. They are kind of becoming a MS type of comapny where they try to appeal to everyone. Where the PS3 is becoming more like a mac, for your true die hard graphic lovers.
I mean all Nintendo did was use wireless and made games interactive but it was unique enough that they can target a broad group of people. I hoenstly like the fact that the Wii is interactive and I think thats what hooks people in, makes you kinda feel like a back to the future type video game system.
So if Playstaintosh want to compete they need to be inovative, make there next system interative, but in 3-d without the glasses, so you can fight the lawngnomes, kung foo chop the wizard etc.
Otherwise playstation will have to overcharge on there products just like mac's do so they can stay in business for there small elite group of followers
 
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@ solymnar

You don't even have to mod the wii... install a media hosting program on your pc (I think there was an article here at toms actually) and your whole media library is available. It won't have high resolution though.

Nintendo even came out and said that they have no reason to adjust their prices on the wii. The demand is still high, so why not charge as much as possible, plus just as much for games as the competition. I love my wii, but they could have been better to the consumers by making a console which does more, and will serve you better in the future. If it wasn't for Supersmash Brothers and/or Mario Kart, I wouldn't have bought a wii.
 

vaskodogama

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with this profit nintendo gained, they should do some work with the graphics.
the great success is Fun, Innovation and Graphics altogether! so, if nintendo do not do something for the next gen console of it's, they will fail! I hope not!
 

veszerin

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The wii was never targeted at hardcore gamers such as me and the people that post here. It was targeted at everyone. All ages, all demographics. And in that, it obliterated the competition. It even sold some to those of us hardcore gamers that wanted to play the new Mario, Mario Kart, Super Smash Brothers or Zelda.

Nintendo was the only company actually making money on each console sold. they made 300 million$ USD just on consoles. Now with manufacturing costs down, it'll be even more.

Courtesy of Nintendo, the expanded gamer base will allow for new companies to find a niche, and make excellent games. There will be less anti-gamer BS in politics and the media.
 

foxyg

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So now Wii cost $50 to make now? Xbox 360 cost $50 less than Wii still and it is a much better console for playing games.
 

duckmanx88

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[citation][nom]foxyg[/nom]So now Wii cost $50 to make now? Xbox 360 cost $50 less than Wii still and it is a much better console for playing games.[/citation]

and here it comes. we're not discussing which console is better we're discussing the price reduction. now nintendo has the cash to develop a much better console next generation. perhaps with a motion controller and a standard gamepad, a harddrive, hd support, and more high end third party support.
 

The Schnoz

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[citation][nom]duckmanx88[/nom]and here it comes. we're not discussing which console is better we're discussing the price reduction. now nintendo has the cash to develop a much better console next generation. perhaps with a motion controller and a standard gamepad, a harddrive, hd support, and more high end third party support.[/citation]
Oh shut the fuck up. We'll discuss whatever anyone wants to talk about. This is an open forum and his statement was related.
 

Tindytim

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[citation][nom]foxyg[/nom]So now Wii cost $50 to make now? Xbox 360 cost $50 less than Wii still and it is a much better console for playing games.[/citation]
Nope, the Wii is a Gamecube with higher clock speeds. I'm sure they're selling them for much cheaper.
 
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