PS3 anyone.

[Raditzu]

This isn't their first rodeo, so to speak. They know what they're doing.

[Super Buu]

Originally posted by Raditzu
Actually, every console has been sold at a loss. They make it up on the software side. Always have, always will.

Though companies generally do make most of their money on software, I believe both the GameCube and the Wii were sold at a profit (at least at launch). Both consoles were made to be efficient to produce.

[Super Buu]

That's what I like about 'em. I think it's better to spend the money figuring out ways of using less materials, it's less wasteful. Nintendo always like to make profit on their consoles because their strategy isn't to dominate the market like Sony/Microsoft. They sustain themselves by making money on everything they make.

I've linked this before, but it's STILL the best article ever. Anyone interested in the games industry and Nintendo's strategies, even if you aren't a Nintendo fan, should read it. It was written a while ago now, but I still reference it. =)

[Kirano]

Originally posted by Aqua
I won't believe that...

No srsly. He didn't. I don't want to believe it. I'm not paying more than ?300 for mine I swear.

[Krillin]

Originally posted by Raditzu
Actually, every console has been sold at a loss. They make it up on the software side. Always have, always will.

Yeah, Super Buu's right. Can't vouch for the GC bit, but the Wii is being sold at a profit.

[Vegeta]

The last console with production costs lower than consumer cost was the Sega Dreamcast. Everyone else loses money on 'em.

Actually, the Wii is probably pretty close to being in the green on this one. I know the controller however costs more to make then it retails for. Their costs for one is in the upwards of $75. I think they hope to make back some of that on the virtual console games, which will cost them almost nothing to deliever.

The Gamecube cost $275+ to produce. And with a launch price of $200, that's a loss.

Let me tell you a little story called economies of scale.

edit: nintendo also dropped the DVD player from the Wii in an attempt to lower costs.

[Super Buu]

Actually, yeah, I think you're right on the GC, Krillin. I believe it was just that they were losing less money than the competitors, but yeah, still not a profit.

[Vegeta]

Nintendo has to keep costs low, just like Sega did, in order to stay in business.

Sony and Microsoft can make up the red, so to speak, because they make billions in profit elsewhere.

[Broli]

A loss in hardware costs is made up in accessories and video games for that system.

There's a simple answer.

Edit: The main purpose of the low Wii cost was for consumers.