11-20-2006, 09:45 PM
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.
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.