3DS Components cost about $100

Discussion in 'User Submitted News' started by Terminator02, Mar 31, 2011.

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Mar 31, 2011
  1. Terminator02
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    Member Terminator02 ヽ( 。 ヮ゚)ノ

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    [​IMG]
    UBM TechInsights has done a teardown of the Nintendo 3DS and marks the total cost of the system's hardware at $101. That's $15 more than the DSi was reportedly made for, though the 3DS also includes a 3D screen and a gyroscope, along with other enhancements.

    Retailers are selling the 3DS for $250, but that's not all markup -- there are marketing, research and other charges associated with a console release, and everyone in the supply chain has to take their own cuts, of course. Still, Nintendo is likely making a profit on every unit sold, which is exactly as expected (and what it did with the Wii). Even before you start talking about games and licensing, Nintendo is making sure there's some money rolling back its way from day one.[/p]
    [​IMG] Source (Joystiq)
     


  2. ShawnTRods

    Member ShawnTRods GBAtemp Psycho!

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    I am sure I have seen a few threads relating the manufacturing cost.
    Also loads of discussion regarding this [​IMG]
     
  3. Zarcon

    Former Staff Zarcon .:~Enigmatic Wanderer~:.

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    This isn't really surprising. Nintendo has always sold their machines at a profit.
    Always.

    And as they say, keep doing what you can get away with until you can't get away with it any longer.
    And at this rate, they'll just on doing it for a long, long time.
     
  4. ShawnTRods

    Member ShawnTRods GBAtemp Psycho!

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    LOL Ya.
    Compared to Sony, they do make a lot of profit regarding their console system.

    I wonder how much it costs them to make Gameboy Advance.(because micro was built years after it, just to compare the built price [​IMG])
     
  5. Hop2089

    Member Hop2089 Cute>Hot

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    Nintendo usually knows what they are doing and often employs a few cost cutting measures without sacrificing system quality. It pretty much would explain how they are making a slight profit off each unit sold.
     
  6. Sausage Head

    Banned Sausage Head Lord Sausage LXIX

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    I'm sure I've seen a post like this before...
     
  7. Recorderdude

    Member Recorderdude Musician, Animator, Buffoon.

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    The nD costs $10 to make.

    And that's how much its costs to buy.

    IT HAS BUTTONS.
     
  8. KingVamp

    Member KingVamp Great... AETHER!

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    It doesn't cost $400!!! [​IMG]

    Yep, seem like a fair price.

    I do not see how some people expect Nintendo to put everything in the world at it fineness in one device and sell at a lose.
     
  9. twiztidsinz

    Member twiztidsinz Taiju Yamada Fan

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    Not surprising... And before all the people say "well duh! what about the ASSEMBLY costs!?!?!", there's a big to-do going on in my state (MA) about a company who got a bunch of money from the state to manufacture Solar Panels which would have created jobs... but those jobs are being sent to China.
    The company defended it's action by saying something along the lines of "it's a cost cutting measure" and brought up that they'd have to pay workers in the US $25/hr for labor, but in China they pay the workers $2.50/hr.



    It's called "subsidizing", and pretty much every other manufacturer (aside from Apple) that has 'addons' or service fees does it.
    Cellphones are a great example of this, you can get a cellphone for $100 with a 2 year contract, but that phone costs about $500 or more.
     
  10. KingVamp

    Member KingVamp Great... AETHER!

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    But I do not want to be bound by a contact.
     
  11. Terminator02
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    Member Terminator02 ヽ( 。 ヮ゚)ノ

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    me neither, i always get nervous when i have to talk to someone
     
  12. SPH73

    Banned SPH73 Banned

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    $101 = Cost of Goods Per Unit (which is only a rough estimate made by a site that doesn't know how much Nintendo is actually paying for parts.)

    +Die Cutting, Plastics (Very costly)
    +Packaging (costs more than you think)
    +Manual Printing (ain't cheap)
    +Shipping (Shipping units by the millions = extremely expensive)
    +Marketing + Advertising (really, really expensive)
    +R&D Costs which must be recouped before it can really be considered "profitable"

    = A lot more than you think. This is the REAL cost of the 3DS.

    Articles like this one are usually written by people who have no actual insight into Nintendo's manufacturing process. (Hence their frequent use of the word "estimate.") They are basically looking for that "knee-jerk" reaction from a reader who sees the headline and thinks "$100?!?!" and then clicks the link. Meanwhile the author seems completely ignorant to the "real math."
     
  13. twiztidsinz

    Member twiztidsinz Taiju Yamada Fan

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    Either they're ignorant of the real costs, or you're ignorant of the whole "teardown" thing and them stating (usually multiple times) that this is the cost of PARTS.
    You're not going to include packaging, manuals, shipping, marketing, advertising, research, etc in the cost of the PARTS because they are not PARTS of the device (they would fall under 'accessories' and/or 'packaging').
     
  14. jesterscourt

    Member jesterscourt Not Brad.

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    Not to redux everything already in this post but:

    Nintendo has always MADE money on their consoles, not selling them as a loss leader to be made back on accessories and games (poor Sony)

    R&D and licensing costs were in the millions, and there is the whole aspect of putting the things together, testing, developing software, and oh yeah, marketing.
     
  15. SPH73

    Banned SPH73 Banned

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    Actually MS learned their lesson with the OG Box. They've been selling 360 at a profit since roughly the end of the first year of the consoles life. (google it)

    As for Sony, they've never made a profit on the PS3.

    http://www.vg247.com/2009/10/30/sony-ps-di...-launching-ps3/

    Financially the PS3 is a complete failure. And since this article was published in late 2009 they've lost even more money. (Which you can confirm for yourself by checking their publically available financial reports)

    The PS3 is such a financial failure someone in Japan (sony's home turf) actually wrote a book called "Why the PS3 failed."

    http://www.maxconsole.net/showthread.php?7...-the-PS3-failed

    As for your claims about Sega... links? source?
     
  16. Terminator02
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    Member Terminator02 ヽ( 。 ヮ゚)ノ

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    it was sometime mid last year sony said they were finally making a profit on the ps3, and as twiztidsinz said, this is purely the components, did u read the second paragraph in the OP?

    now stop trying to make a big fight
     
  17. lompoc

    Banned lompoc Banned

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    arcade uprights cost 5000 and 3ds has bomb graphics so it cost same but portable do the math
     
  18. SPH73

    Banned SPH73 Banned

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    1. Sony making a "profit" on the PS3 does not mean they have recouped the massive 4.7 billion dollar losses they posted in 2009. (Or the losses they have incurred after that point.)

    2. The second paragraph is exactly what's wrong with this article. Basically the author is writing a sensationalist piece saying "Well 3DS COG is $101." And he implies heavilly that Nintendo is making a large profit. But then to cover his sloppy journalism he says "well there are other costs" and implies he doesn't know what those costs are.

    My first post in this topic is the most accurate cost break down for any piece of hardware. The only thing I forgot to include is the retailer cut, which on hardware is traditionally small. You can't estimate profit until ALL these things are considered.

    BTW, no one is trying to cause trouble here. If you can't take serious, informed discussion on the business of gaming then you shouldn't post articles like this one. [​IMG] We're not all ignorant of the manufacturing world. (I should say at this point that I've been testing a video game related prototype for the past 4 months.)

    As for Nintendo... I once had a Nintendo rep tell me "we could sell the GCN for $50 and we would still make a profit." Of course that was when the GCN was selling for $100
     
  19. twiztidsinz

    Member twiztidsinz Taiju Yamada Fan

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    I'd have to dig up sales numbers and stuff, which I really don't care to do.
    This is a standard practice taken by many hardware manufacturers that also produce software. Even without proof/evidence, it's more likely for Sega (especially Sega) to have done this, considering they were arguably one of if not the most advanced home console developer for a while. Look at the SegaCD, the Saturn and the Dreamcast.
     
  20. SPH73

    Banned SPH73 Banned

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    1. There are a LOT of costs missing here. (Retailer cuts, packaging, advertising, printing, die costs, etc)

    2. Originally Sony was selling the PS3 at a loss of $200 per unit. (Assuming you believe the claims that said PS3 COG was close to $800)

    Selling hardware at a loss doesn't always work. (IE, Sony's 4.7 billion dollar loss in 2009) This is why Nintendo wisely avoids that suicidal strategy.

    I'm willing to bet that Sony won't take this route with the PS4. (Aka NGP)
     
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