250 Nintendo 3DS costs Nintendo just 101 to make

first_imgNintedo’s newest handheld, the 3DS, is out next week, and it’s clearly a sizable update on the current model DS, not just in its glasses-free 3D display but in the impressive processor driving the whole shebang.In the United States, Nintendo will charge $249.99 for each 3DS console. How much of that $249.99 asking price is pure profit, though? The bills of material experts over at UBM TechInsights provided Eurogamer with a “preliminary” estimate of how much it would cost Nintendo to build each Nintendo 3DS.AdChoices广告So how much is Nintendo “making” per $250 3DS? $149. Each 3DS is only costing then $101 to make.We surround “making” in quotes because it isn’t, of course, that simple. Every 3DS console has all sorts of invisible costs associated with it, including publicity, research & development, advertising costs, the retailers’ cut, shipping costs, etc. Those factors may make up a sizable portion of the associated costs of every handheld sold.Of course, all of these costs will go down over time. Materials become cheaper, processes become more streamlined, and so on. Even if Nintendo isn’t making much of a profit right now, they will be doing so soon enough.If only the same thing could be said about Sony, whose blisteringly specced NGP looks like it’s packing so much advanced hardware that, like the PSP and PlayStation 3 before it, Sony will have to sell it at a loss at first.As gamers, we might accuse Nintendo of being mercenary in pricing the 3DS with $150 worth of “profit” built into each unit, but that’s just good business sense.Read more at Kotakulast_img

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