Eurogamer has reported today that the upcoming Nintendo 3DS has an estimated component cost of just £62.
The device will sell in Europe for over £200 including VAT.
It is important to note that while the components cost £62, that does not include R&D or shipping costs.
Nintendo admitted during its last financial earnings report that the handheld will sell at a profit right out of ... [ read the full article ]
Please read the original article before posting your comments.
What most people forget about Nintendo is that unlike their biggest rivals all they do is make video games. That's the company's bread and butter they can't fall back to another division to keep the business going and the share holders happy. So kudos to them for making products that are profitable from day one
Originally posted by Bozobub: Why? Because they'll make a profit off the thing? Sounds like good company policy to me.
I think people assume if it costs £62 to make, it should cost £62 to buy... of course, the company would run into a loss, but at least everyone would be only be paying what it cost to produce.
In all seriousness, I would ask that anyone who thinks the purchase price is too high actually "step up" and put a figure on how much it should be... how much is a "fair" price to pay for it?
And then after they price-tag it, explain how they arrived at this figure. How did they offset the cost or research and development, marketing costs, deployment and sourcing of the parts, wages and such?
Of course one needs to factor in R&D costs... It's just FYI stuff, knowing how much the components really cost gives people an idea how much the product is marked up. Regardless what the product is or who create it, there's a "reasonable" line somewhere. It's up for debate like everything else in the world, lol.
