AfterDawn: News

Nintendo 3DS teardown reveals estimated £62 production cost

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 the gate just like its Wii did. Sony and Microsoft sold their home consoles for under cost for many years, making money solely off accessories and software.

The 3DS has launched in Japan and will hit the States next week at $250. The European launch is coming soon after.

Written by: Andre Yoskowitz @ 25 Mar 2011 0:02

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• 8 comments

• ROMaster2

  They know how to real in the profits. At least in this case it's just entertainment.

  25.3.2011 00:15 #1

• be4dusk

  Originally posted by ROMaster2: They know how to real in the profits. At least in this case it's just entertainment. I think you mean "reel," but yes, they sure do!

  25.3.2011 02:43 #2

• xyqo

  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
  

  XXYYQQOO!!! Yeah WELCOME TO JAMROCK
  
  

  25.3.2011 10:12 #3

• ZippyDSM

  SHeeshh.....they could at least put a 6000MA battery in it >>
  
  this is the first nin product that really deserves the duct taped together subtitle...
  

  Until lobbying is a hanging offense I choose anarchy!
  Ah modern gaming its like modern film only the watering down of fiction and characters is replaced with shallow and watered down mechanics, gimmicks and shiny-er "people".
  http://zippydsmlee.wordpress.com/

  25.3.2011 11:34 #4

• Anonymous23 (unverified)

  And this is why I sincerely hope this thing fails.
  
  If it doesn't, everyone's a lying hypocritical Nintendo worshipper.

  25.3.2011 12:41 #5

• Bozobub

  Why? Because they'll make a profit off the thing? Sounds like good company policy to me.

  25.3.2011 23:13 #6

• MrZoolook

  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?
  

  26.3.2011 13:33 #7

• Gnawnivek

  MrZoolook
  
  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.

  29.3.2011 14:03 #8