The 3DS teardown: Actual HW cost is $100

[Pulsar_t]

By all means feel free to defend Nintendo, but people deserve to know what they're paying a premium for. Too bad that unlike designer clothing and many other consumerist products gaming handhelds don't have many alternatives.

[CFFJR]

What Inazuma said is true.

The market will always determine the cost. A price drop or some kind of bundle incentive will come in short order if the 3DS doesn't sell (though it will sell, like hotcakes, but that's not the point)

A product is only worth what the consumer is willing to pay for it. High or low, that's the way it is. Not saying its good or bad, but there you have it.

[Flake]

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.

Ah shit. I am in full agreement with Inazuma about something. I knew today was going too well.

But seriously, the cost of the raw materials is about the most irrelevant thing you could talk about if people are going to get in line days in advance for the final product.

By all means feel free to defend Nintendo, but people deserve to know what they're paying a premium for. Too bad that unlike designer clothing and many other consumerist products gaming handhelds don't have many alternatives.

Give it some time. I am sure someone will quickly raise the god damn jolly roger and offer up that 'alternative'.

[AppleQueso]

pulsar_t, I think you'd probably shit yourself if you realized how much most of the things you buy actually costs to manufacture.

[MrPopo]

pulsar_t, I think you'd probably shit yourself if you realized how much most of the things you buy actually costs to manufacture.

Like how a DVD is pennies?

[jfrost]

Prices really have nothing to do with costs.

(In fact, prices determine costs, not the other way around. We are used to thinking that prices should have some relation to the cost, but that is not true. Often costs are higher than prices, and that results in losses. When the opposite is true, you have profits.

People are used to thinking that prices should be pegged to cost because they assume the point of view of an individual, a "price-taking" agent. In the grand scheme of things, costs are not fixed. And it would be odd, after all, since costs are prices a firm pays for producing its product.)

/econ geek

[t0yrobo]

A 100%-200% markup really isn't unusual for any product. IMO the Gillette model (sell at a loss and make it up with licensing and accessories) that Sony and MS have been pushing on the game market has been bad all around.
And remember there's a LOT that has to get paid for before something like the 3DS gets sold worldwide. Hardware engineers, electrical engineers, industrial design, research, graphic design, testing, marketing, manufacturing, legal, developer relations, tool and software development, warranty coverage, etc. etc. etc. And some of those need to be done for every country that it's sold in. Also when your dealing with companies that are manufacturing things in the millions, numbers add up really fast so cents make a difference.

[Amplibax]

I love Nintendo games and all and I also buy all of their consoles eventually, but I would really like to see them release another console that actually has cutting edge graphics whether it be in terms of a home console or a handheld, not just some gimmick like an extra screen, motion controls or 3D. Everyone likes to defend Nintendo by saying that graphics aren't important. Obviously graphics aren't nearly as important as games being fun, but an important thing for me and many other is the production value of a product!

[Rayban]

Are the R&D (yes people actually get paid to design products), accessories, packaging material, manufacturing and shipping prices included in the "actual" hardware price?

[BlackDS]

DSes have hinge issues, PSPs have UMD and screen issues. They are both crap compared to the OG gameboy