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Reports Divulge Possible Wii U Manufacturing Costs

Reports Divulge Possible Wii U Manufacturing Costs on Nintendo gaming news, videos and discussion

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.

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09.04.2012 12:05

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Senior ModeratorCubed3 Member

enough power to keep in line with the current consoles

This.
I won't be getting one as it looks like they will bite the dust in about a year when the next set of consoles come out. I'll stick with my PC thanks - I'd prefer to drop another graphics card into my system. Lets be honest here, the only reason why you would go for a the Wii U would be for the very few exclusives it has going for it. Otherwise, it sounds like a 6-7 year old piece of kit can keep up with it. Regardless of the controller, it shouldn't cost anywhere near this price.

( Edited 09.04.2012 12:19 by Echoes221 )

Unconfirmed sources.. SNM

Staff Member

Supa_hyped said:
Unconfirmed sources.. SNM

Exactly, and most of them are from Neogaf, seriously I'm not joking.

It wouldn't have been able to the garden demo if it had been on par with current gen consoles.

Stuart Lawrence
Follow Me on twitter :: @Stulaw90 || My Youtube || Backloggery
NNID: Stulaw

Regardless of sources, I think it's very unlikely that the WiiU will come out for anything less than $300. Unless perhaps Nintendo is marketing it as a budget system or WiiHD.

I still see huge diminished returns in the "power game"

My issue is, as always, the tablet idea doesn't appeal to me.
I'll wait till theirs a Skyward Sword style game with a better wiimote!

Please give our little random review show a try;
http://randomreviewshow.com/index.html
We have special effects and umm...stuff...

Hmm, I detect a bit of inconsistency with what Nintendo are trying to promise developers and their fans. I already feel like as a fan I'm having the wool pulled over my eyes - I've always assumed that their new system will be powerful beyond the current generation bar. But I get the feeling Nintendo won't quite deliver that, and attempt to hush fans with the notion of HD Zelda and Mario.

We should have had that five or six years ago!

I don't really like Nintendo's current attitude or philosophy, it seems to me they've become much more business like and less about the gamers themselves. I know it's a different time but I don't really think Nintendo will ever replicate the magic they made with the SNES and 64. This new console could really go either way, there's no denying the allure of HD Zelda's, Metroid, Mario and other Nintendo franchises will be enticing.

But do I..
a) trust Nintendo to quickly surmount a big selection of first party games to make the Wii U appealing to a large audience.
b) trust Nintendo to keep the system in touch once MS and Sony re-up their hardware.
c) trust them to drastically improve their relations with third-party developers and ensure what they make for Sony and MS can be translated to the Wii U.

Answer to all three, probably not.

On the basis of what has been said in this piece, it sounds like Nintendo are making an Xbox 360. It says a lot that it's taken such a long time for Nintendo to finally embracing downloadable content, apps, downloads and proper integrated online play. It says even more that they've managed to dress it up so people are still going to be excited when it launches.

All that said, a solid E3 show could change a lot. As a strongly as I feel about Nintendo's downfalls over the last decade, I'm a 90s kid. And if I'm presented with a HD Zelda game that pushes the graphical boat like Red Dead Redemption, GTAV and co do on the current generation - pants will be filled, and I may just have to get one anyway.

In that respect, price point is a killer. If Nintendo were to really turn it around at E3 and I genuinely felt there would be a Mario, Metroid, Zelda, Smash Bros, Mario Kart and whatever else by the end of year 1 - I could be persuaded to put up with another generation of fads and inferior hardware. Smilie

Senior ModeratorStaff MemberOur member of the week

As always, Strat, you say exactly how I feel about the whole situation. Nintendo really need to surprise me at E3.

Cubed3 Staff :: Senior Editor
Follow me on: Twitter | YouTube | Backloggery
Senior ModeratorStaff MemberOur member of the week

Trolling.

Cubed3 Staff :: Senior Editor
Follow me on: Twitter | YouTube | Backloggery

The Art of Trolling by Master Marzy Smilie

Just wait till E3 when Nintendo reveal all, then people can decide for themselves.

Senior ModeratorCubed3 Member

Marzy said:
Echoes221 said:

I won't be getting one as it looks like they will bite the dust in about a year when the next set of consoles come out. I'll stick with my PC thanks - I'd prefer to drop another graphics card into my system. Lets be honest here, the only reason why you would go for a the Wii U would be for the very few exclusives it has going for it. Otherwise, it sounds like a 6-7 year old piece of kit can keep up with it. Regardless of the controller, it shouldn't cost anywhere near this price.

You'll have to get rid of your 360 then and all your old consoles if you can't play or enjoy consoles with 6 - 7 year old technology. All those games you bought will be gone, you might make a lot of money!


You missed my point, what I meant was that there is no point in buying a Wii U for 'next gen' stuff when a 360 and PS3 can keep up with it for half the price. The Nintendo exclusives haven't been very good/frequent enough this gen either, so they really need to step up their game if they are marketing it at that price. And still, what's the point if its going to be eclipsed a year later that will put the Wii U in the same place the Wii is now?

If the news that it can't even run some current-gen games is true, $300 is WAY too much. Old technology + single-player only games + $300 = Massive waste of time and money. If even two of these new rumors are true, Wii U is the biggest mistake Nintendo has ever made. Some tablet isn't going to make up for that. If I wanted a tablet device, I'd buy a tablet device.

I sincerely hope Nintendo is working on a real next-gen console to compete with the next-gen consoles their competitors are making, otherwise the Wii U will be even more pointless because everyone will stop making games for it as soon as the newer hardware is out.

I really hope Big N proves me wrong on this, but it's not looking good.

NNID: crackedthesky
My blog, mostly about writing: http://davidjlovato.wordpress.com

Wait, how much did the Wii sell for? $250? And what about the PS3 and 360?

bornforthis43 said:
Wait, how much did the Wii sell for? $250? And what about the PS3 and 360?

The 360 sold at around $400 at launch I believe & the ps3 sold at the GOD AWEFULL price of $600, $300 sounds very reasonable considering Nintendo is offering something NEW to gaming...which is more than lazy Graphic Whores at SOny & M$ have been offering the industry (And no Kinect & Move do NOT count since they're copies of Nintendo's Motion ideoligy...even AFTER they tried to insult Nintendo for doing something new & inovative...such "kiddy" behaving companies)

I'd like to pick this up day one...but I'm broke so I'll have to settle for buying Batman Arkham City & Ninja Gaiden 3, then get the Wii U later. Also has Nintendo said they'll be announcing the new name for U anytime soon, I feel that name will hurt the system like the Wii did for some. Unfortunatly most of us American's are shallow & judge based on apperence & "Cool Factor"... not all of us are as open to new ideas & creativity as I am.

It is not wise to speak on subjects you do not know all facts about, nor is it smart to judge a game based on looks alone. PSN: Nintendo_Gamer 3DS: 4296-3029-7422

Echoes221 said:
I won't be getting one as it looks like they will bite the dust in about a year when the next set of consoles come out.

Just like the PS2 bit the dust when the more powerful Xbox and Gamecube came out?

Just like the DS bit the dust when the more powerful PSP came out?

Just like the 3DS bit the dust when the more powerful PSVita came out?

Vorash Kadan said:
bornforthis43 said:
Wait, how much did the Wii sell for? $250? And what about the PS3 and 360?

The 360 sold at around $400 at launch I believe & the ps3 sold at the GOD AWEFULL price of $600

The PS3 launched at $500 and the Xbox 360 launched at $300.

NNID: crackedthesky
My blog, mostly about writing: http://davidjlovato.wordpress.com

Sonic_13 said:

Just like the PS2 bit the dust when the more powerful Xbox and Gamecube came out?

Just like the DS bit the dust when the more powerful PSP came out?

Just like the 3DS bit the dust when the more powerful PSVita came out?

The last two aren't realistic comparisons because those are handhelds, the handheld market is very different from the console market. As for the PS2, it came out a year and a half before the other two and had time to build a massive third-party support base and record sales, all helped out by the DVD boom, none of which the Wii U will have.

I get the argument that power isn't everything, but when you release an underpowered system that only one person can play, will likely have terrible online multiplayer, and is overpriced to boot... I don't think we'll get a repeat of the Playstation 2's success. A better comparison would be the Wii to the PS3 and 360, but if the Wii costed the same or more than both competitors.

(Keep in mind this is all assuming this string of rumors is true, which I'm in no way saying is definite.)

NNID: crackedthesky
My blog, mostly about writing: http://davidjlovato.wordpress.com
Senior ModeratorStaff Member

Marzy, you're not contributing to the discussion with that at all.

This shouldn't surprise anyone too much -- its Nintendo we're talking about here. At this rate though, it doesn't make sense to buy a Wii U at launch when MS and Sony will likely drop the price of their systems this Christmas. Come Christmas time, would you rather have a Wii U that launches for $300 with likely no games, or a PS3 for $250 with a ton of games? Atleast the PS3 will play my Bluray movies too.

Nintendo has some serious selling to do at E3.

Just like the PS2 bit the dust when the more powerful Xbox and Gamecube came out?

Can't speak for Echoes, but I was thinking more like when the Dreamcast bit the dust, personally. Smilie

( Edited 09.04.2012 18:47 by Jacob4000 )

C3 Moderator

justonesp00lturn said:
Vorash Kadan said:
bornforthis43 said:
Wait, how much did the Wii sell for? $250? And what about the PS3 and 360?

The 360 sold at around $400 at launch I believe & the ps3 sold at the GOD AWEFULL price of $600

The PS3 launched at $500 and the Xbox 360 launched at $300.

There was a $500 version yes but the $600 60gb is still relivant & what I was refering to.

And you're missing the point too Jacob, what you say isn't valid since there have been quite a few big budget titles confirmed for U including Aliens, Assasin's Creed 3, Batman & Ninja Gaiden 3...PLUS the ability to play all your Wii titles fully backwards compatible.

Which is my other concern I have for the ps4 & xboxs720 IF they decide to use the Durango & Orbis programs rumored to be in development...that will KILL the fanbase for those 2 systems & piss people off like no other!!

( Edited 09.04.2012 20:15 by Vorash Kadan )

It is not wise to speak on subjects you do not know all facts about, nor is it smart to judge a game based on looks alone. PSN: Nintendo_Gamer 3DS: 4296-3029-7422
Senior ModeratorStaff Member

And you're missing the point too Jacob, what you say isn't valid since there have been quite a few big budget titles confirmed for U including Aliens, Assasin's Creed 3, Batman & Ninja Gaiden 3...PLUS the ability to play all your Wii titles fully backwards compatible.

None of those are exclusive to the Wii U. I think you're missing the point.

C3 Moderator

Those big-budget titles are only going to be relevant for a year, maybe two, before the other systems come out. But who knows? The Wii's first two years were better than the rest of its lifespan combined pretty much, and all Nintendo really has to care about is how well the system sells. If the WiiU comes out of the gate swinging and a gem drops every 6-8 months after the first two years, it'll at least be as worth owning as the Wii I guess.

NNID: crackedthesky
My blog, mostly about writing: http://davidjlovato.wordpress.com

Let me give you a scenario, you own a small yet booming company that has essentially created its own niche market in the entertainment industry. Aside form one other rival company, you have relatively little competition, but business is growing rapidly and sales are going up, surprisingly, around the world for the both of you.

Then all of a sudden, Apple enters the market. I need not remind you Apple shaped the modern music industry, created and owns the market for Smartphones, MP3 players, and also recently pioneered tablet computers. In the not so distant past you were selling trading cards.
After five years of somehow competing, your original rival drops out and Google suddenly decides to enter your market. As president of your little company, you don’t own or use any Apple products, but you use Google everyday of your life as does everyone else. You log on to your computer, check your e-mail, and surf the internet all powered by Google. In comparison, your past achievements include creating a fun, plastic toy robot that someone once used when they were eight.

You are now competing with the two largest, most powerful companies in the world.

Replace Apple with Sony and Google with Microsoft in the above and this is what Nintendo has dealt with in the past. I’m not worried about them not being able to compete. What Nintendo does never looks good on paper, but they thrive none the less.
What I find worrisome is that this time around, we have truckloads of negativity directed at all three next gen consoles. We only know for sure about the Wii-U and we don’t even know anything concrete.
What's worse, I'm part of that negativity. I'm not impressed with the Wii-U, but I’m not impressed with the rumor mill surrounding the PSOrbis or the X-Box 720 either. I trust Nintendo, but just don't know what to think.



( Edited 09.04.2012 21:42 by Duggler657 )

justonesp00lturn said:
As for the PS2, it came out a year and a half before the other two and had time to build a massive third-party support base and record sales, all helped out by the DVD boom, none of which the Wii U will have.

1) It may not be a year and a half, but it will most likely be a year.
2) You really don't think Wii U is going to sell very well?
3) Wii U is already seeing some of the largest 3rd party support a Nintendo system has had in many many years. Obviously sustaining that level of support will be important, but you can't use that old argument at launch.
4) No, it will not be able to play DVDs (or blu-rays), but that capability is of lesser significance with each passing generation. As long as Wii U can stream Netflix and Hulu (as well as maybe others), then it's basically a non-issue.

justonesp00lturn said:
I get the argument that power isn't everything, but when you release an underpowered system that only one person can play, will likely have terrible online multiplayer, and is overpriced to boot

1) Only one person can play? That is factually incorrect. Five people can actually play at once.
2) Comments from Ubisoft, EA, and others have all stated that Wii U's online is not terrible.
3) Overpriced? Ignoring the fact that the system has no price, value will vary from person-to-person.

Staff Member

It's amazing how much negativity can come from obviously made up information. We know nothing about the system, and every single negative comment has come from annonymous sources and Michael Pachter.

Nintendo would really have to go out of there way to make a system with newer technology worse or on par with the current generation, I mean it's already been conformed to have more RAM. Plus the Gamecube was released at a far cheaper price than the xbox and ps2, and the only real differences were lack of ethernet and dvd drive. They can always cut beck in places that aren't necessary for gaming in the system.

( Edited 10.04.2012 20:02 by Stulaw )

Stuart Lawrence
Follow Me on twitter :: @Stulaw90 || My Youtube || Backloggery
NNID: Stulaw
Senior ModeratorStaff MemberOur member of the week

I don't think they're trying to be negative, they're just worried. It's rumour, from mostly unknown sources, but it's a talking point that shows what plenty of fans feel about the situation. I for one would once again like a Nintendo console that can handle third party offerings that can run on the next PS and Xbox systems, like the GameCube did. First party titles will always draw hardcore fans to it, but why can't we have both again? I'm hoping the Wii U will be the PS2 of the next generation, and will still get ports of PS4 games, just dumbed down.

We all know we have to wait till E3, but I fully understand where people are coming from when they say they can just stick with their PS3s. Unless Nintendo come out with a few solid first party titles from the off, many will just wait till it's come down in price.

Cubed3 Staff :: Senior Editor
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Senior ModeratorStaff Member

The reason people are taking this seriously is that it makes a heck of a lot of sense.

Nintendo would really have to go out of there way to make a system with newer technology worse or on par with the current generation

Would you really be so shocked if they actually did this to save a few bucks? Come on. This is the same company that recycled GameCube tech for the Wii.

Personally, I've already stated that I think the system is going to be close to but above the current generation of systems. But that still fits in with a lot of these reports saying Nintendo is scraping the bottom of the barrel to save money.

Honestly, the best way forward is to assume that the system is equivalent to the current generation. Then you can't really be disappointed. If you continue to cling to the idea that the system is significantly more powerful you're just going to end up unhappy with what you get.

The Wii U will hopefully do a lot of things right. It's going to bring Nintendo's franchises into the HD era. It's probably going to feature a much better online model with an overhauled store. It'll be the most modern system Nintendo has made.

It's just not going to blow you away with its graphics. And that's fine -- Nintendo's just going to need to bring unique software to the table.

And right now, all we've really seen is 3rd party games that will also come to the PS3 and 360. These games show that the new system can indeed handle current generation games, but they really don't do much to make the Wii U a must have. As I said earlier, why should I buy a Wii U to play Assassin's Creed 3 when my current 360 will run it just fine?

Nintendo is going to need a good E3, because the reality is they don't have much of a technological edge. Whether these rumors in particular are right or not, Nintendo's fiscally responsible nature and the price of the Wii U controller are going to guarantee less powerful hardware than you might hope for. It's simply logical.

They're going to need to show us what makes the Wii U special while at the same time showing that their hardware is good enough. That it's not going to be the huge impediment to development that the Wii's hardware was. I think they can pull it off, it's just that right now the only information we're hearing is tech stuff. And this sort of discussion hasn't really been Nintendo's strength these last few years.

When discussing tech specs for a Nintendo console, it's almost inevitable that there's going to be some negativity. On the bright side for Nintendo though, it's sounding like MS and Sony aren't wanting to invest in super expensive hardware either.

C3 Moderator

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