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Tuesday, April 7, 2009

Wii Manufacturing Costs Down By 45%

Article from Kotaku:

But in the years since then, as happens with every piece of consumer electronics, the cost to Nintendo to actually make the things has gone down. And if Credit Suisse analyst Koya Tabata is to be believed, it's gone down by around 45%.

Meaning that, if Tabata's numbers/sources are to be believed, it costs nearly half the price in 2009 that it did in 2006 to manufacture a Wii. Which, yes, nearly doubles the profits they make on every console sold (as shipping costs, etc remain the same). So even with a topsy-turvy Yen and declining sales in Japan, don't cry for Nintendo. They're still doing OK.

Wow. It just keeps getting better and better for Nintendo, but it wasn't always that way. Here's a little something from Edge about Nintendo's dark times.