The 3DS teardown: Actual HW cost is $100

[Pulsar_t]

http://www.eurogamer.net/articles/2011- ... 30-article



Not unexpected.

[AmishSamurai]

It was/is the same with the Wii. The extra $150 USD represents development costs. The fact that stuff like the Parallax Barrier is that cheap astounds me though.

[Pulsar_t]

I always found R&D budgetary claims to be extravagant. I'd chalk it up to retail markup, packaging and the fairly generous profit margin Nintendo have procured for themselves.

[Mod_Man_Extreme]

Packaging, shipping, marketing and then profit.

Still, it should have been about $150-$175 in my opinion.

[Ivo]

I always found R&D budgetary claims to be extravagant. I'd chalk it up to retail markup, packaging and the fairly generous profit margin Nintendo have procured for themselves.

Also, add actual assembly and shipping costs from the manufacturing to the warehouses etc.
EDIT: And considering the UK article, fluctuating exchange rates which they have to hedge against.

I do not doubt that Nintendo is making quite a good margin on it.

They should know better than I do, but I imagine that a little bit lower might have been a good move to establish a larger user base off the bat? I guess they got so much recognition from the real risks they took with the DS that their risk this time is smaller and they believe (possibly correctly) that they can push the limit price-wise - with people still buying it and with devs still making games for it.

We all would rather pay less for it (I would rather they would give it to me for free ), but if it is indeed the best price for them to sell it at in terms of profit I don't blame them. I'm not paying that amount for it, but if there are enough that are willing pay more for it, it may be best for Nintendo to sell it for such a high price.

Ivo.

[AmishSamurai]

Packaging, shipping, marketing and then profit.

Still, it should have been about $150-$175 in my opinion.

That range would have made it a day 1 buy for me.

[Inazuma]

I don't care if it only costs $20 to produce and they sell it for $300. If millions of people are willing to buy it, it is not overpriced. Some people act like companies are immoral for actually trying to make money. All companies are out there trying to make as much money as legally possible. If they can make massive profits on something, of course they are gonna do it.

Talking about the 3DS in particular, charging $250 for a device that costs $100 to produce doesn't sound so horrible anyway. If you factor in development costs, shipping, retail's cut, it may actually be a very fair price. Glasses free 3D technology is still very new and maybe it was very expensive for Nintendo to incorporate into the 3DS.

Isn't the Wii still selling at $200? You know that machine probably doesn't cost anywhere near that much to make. But if people are still buying it at $200, then that's the correct price.

I'm sick of people who never consider development costs or supply and demand when determining the value of something. A game may only cost $1 to make the box and disc, but the game itself may have cost millions to develop.

If the 3DS truly was overpriced at $250 or $300, then it would not sell, and then Nintendo would be forced to lower the price to match its actual value. If you are upset at the price of something, the least you could do is place the blame on the right person. Blame people such as myself who actually bought the 3DS.

[benderx]

In the past Nintendo use to sell their consoles under $200 or $ 150 upon release. They are cheap bastards including why their games cost $50 brand new. of course their games due go down over time. I hated when GC super smash bros still cost 29.99 at target eventhough Super smash brawl was just released.

[AznKhmerBoi]

whats the big deal . Most electronics are cheaper to produce then their retail value.

except for the PS3

[YoshiEgg25]

In the past Nintendo use to sell their consoles under $200 or $ 150 upon release.

Costs more for hardware and R&D nowadays, of course it's going to cost more.

They are cheap bastards including why their games cost $50 brand new.

That's only for the Wii, and it's still less than the PS3 or 360. 3DS games are $40 new.

of course their games due go down over time. I hated when GC super smash bros still cost 29.99 at target eventhough Super smash brawl was just released.

That's the retailers' decisions, not Nintendo's. If demand is high enough, of course the price is going to stay higher!