With the Wii U set to quite literally take the world this year, unconfirmed reports have hinted at how much it could cost.
Nintendo's approach to hardware has typically been a cost-effective one - the guts of the Wii, DS and their older brothers were considered with a healthy profit in mind and to make the retail price affordable for the general consumer. Some might argue that the Wii leaned a little too much towards the budget end when it came to components and where the industry was at over five years ago. With the Wii U set to leap into HD with a new controller - just how much will it cost to produce?
According to unconfirmed sources involved in the manufacturing side at Nintendo, the Wii U will cost around $180 to produce, with an estimated consumer price of around $300.
Around $50 is said to be going into the new tablet controller to produce.
Cutting production costs to maximize profits is Nintendo's main concern with the Wii U. They are cutting costs in the Wii U's hardware to build back confidence in investors. Nintendo wants investors to view Wii U as a less risky proposition.
The $180 value only includes the console and controller, and doesn't factor in any trade discounts, marketing, shipping and packaging. The report also divulges more on the company's approach to the custom GPU and CPU - enough power to keep in line with the current consoles but keeping costs down to keep profits strong and flowing.
Nintendo got a bargain price on the custom GPU and CPU that the Wii U uses. There is a bigger focus on downloadable content, applications, video content, digital distribution, and services to create a stream of revenue. Investors will be ecstatic with the news.
Regardless of manufacturing costs, Nintendo have a decision to make when it comes to setting that all-important retail figure. Launching too high may find another immediate price-drop akin to the Nintendo 3DS, but as a home console with brand-new technology a $300 tag may just be acceptable.