3DS Components cost about $100

[Toader]

Each console has $190 in parts, $50 in labor and manufacturing, $50 in R&D and $25 in distribution.
Sell it at a lost of $15

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

Charger, Cradle, SD card, stylus...

 

[twiztidsinz]

The stuff you said about MS, although completely valid, is painfully obvious and doesn't need to be explained to anyone.It obviously does because you didn't get it.

The stuff you said about Sega proves you don't actually know what Sega was doing 10 years ago when they produced the DC.While the Dreamcast did fall short, you cannot say it wasn't standard-setting.
Two examples I can think of off the top of my head are:
The whole VMU thing was "ripped off" my Microsoft for the Xbox.
It had a modem included, now the 360/PS3/Wii all have broadband adapters.

And none of this negates the basic logic of my posts, which are all still completely valid. (They also negate and expose the truth behind this article. If you want to know the real truth, read the article then read my posts.)

Concerning this article I guess I should say this... the business of gaming "journalism" has never been about telling the truth. Sad but true.

Wrong again. Your posts lack logic since what the article states and what you WANT to think are two different things.
YOU, that is YOU ONLY and not the article, want to think the article says the 3DS costs $100.. and this is WRONG.
What the article REALLY says AND STATES MULTIPLE TIMES is that the cost OF THE COMPONENTS ALONE, that is JUST THE COMPONENTS AND NOTHING ELSE is $100.
I'll repeat this in big red letters so hopefully you see it...
THIS IS ONLY DEALING WITH THE COST OF THE COMPONENTS.
THE COST OF MANUFACTURING, ASSEMBLING, PACKAGING, DISTRIBUTION AND WHATEVER THE HELL ELSE YOU WANT TO ADD IS NOT MENTIONED BECAUSE THIS IS ONLY ABOUT THE COST OF THE COMPONENTS.

Oh and look, now that I've actually bothered to read the article, IT EVEN STATES THAT IT IS NOT THE COST OF THE 3DS ITSELF!
QUOTE

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.

This is a TEARDOWN. Typically* teardowns DO NOT BOTHER WITH THE FINAL COST OF THE UNIT, merely they are interested in the COMPONENT COST.
(*I say "typically" as a cover-your-ass. Without exception, every teardown that I have read deals ONLY with COMPONENT cost, however I am open to the possibility of other teardowns that may deal with manufacturing costs although I have not seen one.)

 

[MelodieOctavia]

I read the article and there was no question that this was just for hardware components. Maybe it's you that needs to re-read the article SPH73.

 

[KingdomBlade]

*snip

This is pure and utter win.

I love it.

 

[SPH73]

I read the article and there was no question that this was just for hardware components. Maybe it's you that needs to re-read the article SPH73.

The intent of the article was to imply that Nintendo is making some huge profit because their COG is allegedly so low. He may claims his article is only about COG only to cover his ass, but again, the real intent of the author is clear. (To make you think Nintendo is making a huge profit. This is something those arguing against me simply don't seem to understand, meaning the author's real intent.)

He only mentions "other costs" later in the article to cover his ass. If he was actually trying to write a truthful article he would have itemized those costs and given you the full story. (So he says "OMG COG is so low." Implying HUGE PROFITS. Meanwhile COG alone has never determined the actual cost of any piece of hardware. COG only is not the way to factor the cost of the product. This is business 101 stuff here.)

Meanwhile the article itself only gives you have the story. And you cannot estimate profit on an item without considering all the factors I mentioned earlier. And that's basically it.

tl:dr = the author is taking you for a ride. and his COG estimates are only just that, estimates. The article is really about generating hits.

 

[SPH73]

COST OF GOODS COST OF GOOD COST OF GOODS

This is all a bunch of nonsense.

You made claims earlier about "Sega selling their products at a loss" and now you can't back them up. You've never understood my argument in this topic. And earlier when you were trying to explain manufacturing costs you left out major factors that would be obvious even to someone taking a basic high school business class.

Its nothing personal, I just don't think you and I are on the same page here.

 

[MelodieOctavia]

I read the article and there was no question that this was just for hardware components. Maybe it's you that needs to re-read the article SPH73.

The intent of the article was to imply that Nintendo is making some huge profit because their COG is allegedly so low. He may claims his article is only about COG only to cover his ass, but again, the real intent of the author is clear. (To make you think Nintendo is making a huge profit. This is something those arguing against me simply don't seem to understand, meaning the author's real intent.)

He only mentions "other costs" later in the article to cover his ass. If he was actually trying to write a truthful article he would have itemized those costs and given you the full story. (So he says "OMG COG is so low." Implying HUGE PROFITS. Meanwhile COG alone has never determined the actual cost of any piece of hardware. COG only is not the way to factor the cost of the product. This is business 101 stuff here.)

Meanwhile the article itself only gives you have the story. And you cannot estimate profit on an item without considering all the factors I mentioned earlier. And that's basically it.

tl:dr = the author is taking you for a ride. and his COG estimates are only just that, estimates. The article is really about generating hits.

I saw exactly what the intent was, and that was to show the cost of PARTS, that's it. But, hey, whatever you want to read into it, that's you deal.

 

[SPH73]

I saw exactly what the intent was, and that was to show the cost of PARTS, that's it. But, hey, whatever you want to read into it, that's you deal.

Well I'm sorry if I understand the true nature of the gaming press.

Honestly my friend, the subtext in that article should be painfully obvious to anyone. Just google this article or just look at the earlier posts in this topic. Where ever people are talking about this article there are people saying "OMG HUGE PROFITS." (And this goes for Nintendo fans and haters.) But they're both wrong. And I hate it when the press treats gamers like they are stupid. (When honestly, the average gamer is a lot more informed than most industry people realize.)

And that's basically it.

 

[Terminator02]

actually no, the majority of "gamers" aren't that informed

and you're trying to prove a point that everyone here already knows, you're arguing with the wrong people, you already made your point, please stop

 

[SPH73]

actually no, the majority of "gamers" aren't that informed. Avert your gaze for I am the high and mighty.

I'm sorry if I give people more credit than you. We can't all live on Mount Olympus.

 

[twiztidsinz]

COST OF GOODS COST OF GOOD COST OF GOODS

This is all a bunch of nonsense.

You made claims earlier about "Sega selling their products at a loss" and now you can't back them up. You've never understood my argument in this topic. And earlier when you were trying to explain manufacturing costs you left out major factors that would be obvious even to someone taking a basic high school business class.

Its nothing personal, I just don't think you and I are on the same page here.

You're right... we're not on the same page.
You're busy MAKING SHIT UP and TWISTING WORDS AROUND.
The rest of us are reading what was ACTUALLY written.
Maybe if you spent a little less time thinking you know everyfuckingthing and everyone else is wrong you could actually READ what was written.


As for the whole sega thing, I don't really care to prove it so lets just remove it from the discussion. We'll go to Magic Make Believe World and pretend that Sega was making profit on all their consoles (though if they were, I don't think the Dreamcast would have been their last console... just saying) and I'll admit it was a baseless argument. But that doesn't change one bit of this topic.
You are STILL making shit up that was not said in the article.
You are STILL using your false information as a point of argument.
You are STILL incapable of admitting you were wrong.

 

[SPH73]

You are STILL making shit up that was not said in the article.
You are STILL using your false information as a point of argument.
You are STILL incapable of admitting you were wrong.

As for the whole sega thing, I don't really care to prove it so lets just remove it from the discussion.

You're the one who claimed Sega was selling their consoles at a loss, then couldn't provide the data to back it up.

You're the one making things up. My argument is valid. Yours hold no merrit. Deal with it.

 

[MelodieOctavia]

You are STILL making shit up that was not said in the article.
You are STILL using your false information as a point of argument.
You are STILL incapable of admitting you were wrong.

As for the whole sega thing, I don't really care to prove it so lets just remove it from the discussion.

You're the one who claimed Sega was selling their consoles at a loss, then couldn't provide the data to back it up.

You're the one making things up. My argument is valid. Yours hold no merrit. Deal with it.

He already admitted he was "wrong" about the Sega part, and dropped it, so you bring it up again?

And you still want to drive your point home even though you have been told to the 10th degree.

It doesn't take a psychologist to figure out your Delusions of Grandeur

 

[SPH73]

He already admitted he was "wrong" about the Sega part, and dropped it, so you bring it up again?

And you still want to drive your point home even though you have been told to the 10th degree.

Because he was accusing me of "making shit up" when its obvious he doesn't know a damn thing about this entire topic. Seriously I've never seen anyone so misinformed.

And if you don't like my posts, don't read them. I personaly feel you're a little ass pained about the whole thing. You do know this forum has an ignore feature right? Why don't you use it and stop attacking other people for voicing their opinions.

If you don't like what I have to say, tough. I'm going to say it anyway. Don't like me? Tough shit. Use the ignore feature.

 

[twiztidsinz]

You are STILL making shit up that was not said in the article.
You are STILL using your false information as a point of argument.
You are STILL incapable of admitting you were wrong.

As for the whole sega thing, I don't really care to prove it so lets just remove it from the discussion.

You're the one who claimed Sega was selling their consoles at a loss, then couldn't provide the data to back it up.

You're the one making things up. My argument is valid. Yours hold no merrit. Deal with it.

You realize you're talking about apples and oranges now...

YOU said that the article was bullshit for leaving out a bunch of costs that add to the final price of the 3DS, despite the fact that the article said this was JUST FOR COMPONENTS.
THAT IS WHERE YOU WERE WRONG.
THAT IS WHERE YOU MADE SHIT UP.
THAT IS THE POINT PEOPLE WERE TRYING TO GET YOU TO UNDERSTAND.

Now you're completely focused on the Sega thing.


I didn't make anything up. I made one unsubstantiated claim (that IS true no matter how much you want to say otherwise) and you're using that as a red herring to distract from the fact that YOU DID NOT READ AND CALLED THE ARTICLE BULLSHIT WHEN IT WAS NOT.
Also, merit only has one 'r'.

 

[KingVamp]

SPH73 you may be right or you might just reading too much into it.

Just it might be time to drop the argument?

 

[SPH73]

I didn't make anything up. I made one unsubstantiated claim..

Which you made up.

This is really pathetic.

 

[stanleyopar2000]

I can foretell the futuureeee..

I SEE...

I SEE........

This Thread being Locked due to flaming

 

[SPH73]

SPH73 you may be right or you might just reading to much into it.

Just it might be time to drop argument?

I'm right.

And I already tried to drop the argument earlier but certain insecure types couldn't accept that different people can have different opinions about the same subject. To those people I say "deal with it." My argument is sound. And my attitude has been mostly polite. Well... mostly

 

[MelodieOctavia]

He already admitted he was "wrong" about the Sega part, and dropped it, so you bring it up again?

And you still want to drive your point home even though you have been told to the 10th degree.

Because he was accusing me of "making shit up" when its obvious he doesn't know a damn thing about this entire topic. Seriously I've never seen anyone so misinformed.

And if you don't like my posts, don't read them. I personaly feel you're a little ass pained about the whole thing. You do know this forum has an ignore feature right? Why don't you use it and stop attacking other people for voicing their opinions.

If you don't like what I have to say, tough. I'm going to say it anyway. Don't like me? Tough shit. Use the ignore feature.

Cool, as long as you follow the same rules, Jabroni. If I don't like your posts, I reply to them. That's the point of a public forum. if I disagree with your post, I have a right to let you know about it. I'm not "asspained" about anything, and in my opinion, that would most likely be Projecting. If I were you, I'd get my head checked, because you obviously have a few problems with your clockworks.