Speculate Wii's BOM

[Shifty Geezer]

Retailers do make a small amount on the hardware.

That's the first time I've heard that on this board, where a number of people who (have) work(ed) in stores have said there's no profit and that's why they bundle software.

Furthermore i can't believe people are trying to base their estimates of nintendo making a small loss when they first dropped the GC price to $99 (if that is even true).

There's been several approaches to trying to get an estimate!

I really dont think anyone seems to be considering the possibility of the software that comes packaged with the system as a cost either. I mean the Mii stuff and the photo/video editing and some of the other built in online/offline components that you can't exactly extract money out of their use as they are being sold and used as "free"

That's because software is cheap (well, not games!). This is the first I've heard about photo editing on Wii (Nintendo copy Sony!!!oneone - though it's very slickly implemented with a great realtime interface) but the actual software is very simple and wouldn't cost much at all to create. Even at an overpriced $50,000 to write that, spread between 5 million launch units that'd amount to 1 cent per unit sold to cover the costs. Where costs are incurred, such as the browser, you have to pay for that separately. Software is generally cheap. If they were to spend $10 million creating a game for inclusion, across 5 million units they'd only need to add an extra $2 per box to get they're money back. I can't see software account for a substantial part of the costs.

 

[Teasy]

2. 88 MB 1T-SRAM
4. 512 MB flash memory
5. 4 Gamecube controller ports.
6. 2 USB ports.
7. 2-way digital/analog A/V port.
8. Higher quality, glossy case (incl mobo, heatsinks, and fan).
9. PSU
10. Stand
11. 1 SD card port
12. Connect24 service
14. Wii Sports
15. WiFi
16. Bluetooth
17. Sensor bar (don't forget diodes, housing, cable, fab cost, and any silicon needed)

is $30 worth.

$30 for all of that? I'd be interested to see you itemise that list.

 

[darkblu]

speaking of BOM, does anyone else feel content that this time with wii having a single A/V port doing both the 'analog' and 'digital' outs ninty won't be able to "reconsider" later on and cut out the digital? : )

*me still sour that all of my dreamcasts (ntsc, ntsc-j and pal) can do VGA out no prob, while my late-production ntsc cube is stuck with interlaced for eternity*

 

[sfried]

speaking of BOM, does anyone else feel content that this time with wii having a single A/V port doing both the 'analog' and 'digital' outs ninty won't be able to "reconsider" later on and cut out the digital? : )

Yes, Wii is confirmed to have one single output for AV Analoge and Digital. Perhaps imige quality will also be better even on composite because of this.

 

[Ty]

That's the first time I've heard that on this board, where a number of people who (have) work(ed) in stores have said there's no profit and that's why they bundle software.

Back in the old Genesis days, retailers generally made around $5 per console sold. I got that from an owner of a video game store (he owned a few of them actually).

 

[Fox5]

Yes, Wii is confirmed to have one single output for AV Analoge and Digital. Perhaps imige quality will also be better even on composite because of this.

Will it even have digital out? AFAIK, isn't Xbox 360 analog only?

 

[darkblu]

Will it even have digital out? AFAIK, isn't Xbox 360 analog only?

by 'digital' i originally meant a set of signals on the A/V port allowing progressive, component output signaling. it's just that the oringinal port on the cube that allowed that was actually digital AFAIK. whether the wii A/V port is actually digital or not was not of my concen in that post.

 

[iNoV]

That's the first time I've heard that on this board, where a number of people who (have) work(ed) in stores have said there's no profit and that's why they bundle software.

Yeh when i first read about the retailers profit from wii it was said that it was nintendo's way of getting retailers to support wii, because the profit margin on wii wil be higher than 360/PS3 for retailers

There's been several approaches to trying to get an estimate!

but most of the seemed more reasonable to me comparitvely

That's because software is cheap (well, not games!). This is the first I've heard about photo editing on Wii (Nintendo copy Sony!!!oneone - though it's very slickly implemented with a great realtime interface) but the actual software is very simple and wouldn't cost much at all to create. Even at an overpriced $50,000 to write that, spread between 5 million launch units that'd amount to 1 cent per unit sold to cover the costs. Where costs are incurred, such as the browser, you have to pay for that separately. Software is generally cheap. If they were to spend $10 million creating a game for inclusion, across 5 million units they'd only need to add an extra $2 per box to get they're money back. I can't see software account for a substantial part of the costs.

Well if that is the case then i probably overestimated the cost of wii sports as well, so you have to wonder what's making the console so expensive lol

 

[sfried]

by 'digital' i originally meant a set of signals on the A/V port allowing progressive, component output signaling. it's just that the oringinal port on the cube that allowed that was actually digital AFAIK. whether the wii A/V port is actually digital or not was not of my concen in that post.

Yes it does. It shares the same port as the composite one.

 

[deathkiller]

I don't think that Nintendo will do a lot of profit with the first units since making a new hardware is always costy but in few months their profit will rise a lot. I expect that Nintendo will reduce the Wii price at the same time as MS, Xbox 360 core selling at lower price than Wii would be ridiculous.

 

[Rangers]

Here is that wholesale price info:

http://www.joystiq.com/2006/10/16/explainer-wiis-push-xbox-360s-pull/

Wii's wholesale for 237.50 according to that.

________
Avandia class action

 

[iNoV]

I don't think that Nintendo will do a lot of profit with the first units since making a new hardware is always costy but in few months their profit will rise a lot. I expect that Nintendo will reduce the Wii price at the same time as MS, Xbox 360 core selling at lower price than Wii would be ridiculous.

Nintendo has actually said they'll be making a profit day 1, not a huge one but it will be profitable none the less

 

[darkblu]

Nintendo has actually said they'll be making a profit day 1, not a huge one but it will be profitable none the less

yes, i remember Perrin Kaplan saying so in a interview. but the thing is, she did not say outright 'profit on the hardware' - she shaid, IIRC something along 'wii will be profitable from day one' - that could just as well mean that the hw is at ~break-even, ergo the patform would be profitable with the first sold piece of software. particularly in NA - from the first sold wii sports bundle.

 

[ninzel]

Ya I've heard the whole "Wii will be profitable" statement from a few official sources but each time stated a different way. I think they are being purposely vague.

 

[Capeta]

Slightly OT: Who makes the DVD-ROM drive in Wii? Also what is its max read speed?

 

[reilo]

Slightly OT: Who makes the DVD-ROM drive in Wii? Also what is its max read speed?

I believe the Wii uses the same disc format as the Gamecube. Meaning, it does not have a DVD-ROM drive (as it cannot even play DVD movies). I would not be surprised if Philips was the manufacturer though, since their relationship in the early 90s after Nintendo backstabbed Sony.

 

[DeanoC]

I believe the Wii uses the same disc format as the Gamecube. Meaning, it does not have a DVD-ROM drive (as it cannot even play DVD movies). I would not be surprised if Philips was the manufacturer though, since their relationship in the early 90s after Nintendo backstabbed Sony.

It can play DVD movies, it just doesn't ship with the software. I beleive in Japan early next year they will ship the software.

 

[Fox5]

I believe the Wii uses the same disc format as the Gamecube. Meaning, it does not have a DVD-ROM drive (as it cannot even play DVD movies). I would not be surprised if Philips was the manufacturer though, since their relationship in the early 90s after Nintendo backstabbed Sony.

Most likely it's Panasonic since they have a preexisting relationship with Nintendo from Gamecube.

 

[Rolf N]

Slightly OT: Who makes the DVD-ROM drive in Wii? Also what is its max read speed?

That's a peculiar way of putting it. The whole Wii is just the size of a (short) PC internal drive. It's one integrated thing. I wonder who's making the Wii inside the drive?

The proper answer is probably Flextronics. There may be one or two externally sourced drive parts in there.

 

[Capeta]

What I meant was who manufactures the drive, not who assembles the drive into the console. The drive is likely made by a drive manufacturer then put into the Wii console by Flextronics or some other EMS. For example we know the DVD-ROM drive in the X360 is made by LG.