Wherein you fail to understand the actual point. Wii was a success despite the price not being at all representative of the BOM or hardware capability. That's the take home message - final retail price is not tied to BOM, and only people with zero concept of economics in a free market will keep looking at a BOM and expecting that to reflect the retail price. Retail price can be far higher or lower than BOM, for any product.
bkilian is also right in that buying a console isn't about buying hardware, but buying into an experience. It's like buying a key where the value isn't in the metal that the key is made of, but in the room to which is allows entry. The cost of the console includes the opportunity to buy into platform exclusive games and services, like a paid-membership club. Pay £30 a year to join the diners club, and then you'll be allowed to pay to visit restaurants for special meals at special times that non-members don't have. Nintendo's a good example of that. The value of Nintendo's hardware is greatly tied to the quality of the platform exclusives that it enables you to play. Everyone buying a Nintendo console is buying it to gain access to that library, as if the box of electronics is a key to the Nintendo toy chest.
