I don't know how some people are saying that N will lose money with every 3DS.

#41PSDragonRngr01Posted 8/2/2011 8:04:06 PM
And companies never lie about expenditures, ever...
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#42LightHawKnightPosted 8/2/2011 8:04:46 PM

From: TrentHawkins | #058
You know, unless we get a statement about this direct from the big N, or all the costs themselves, all we're doing is speculating. Now, I'm no Economics major, so if someone who is wants to chime in go ahead, but...

Let's start off by separating the costs into fixed and per-unit

Per unit:
parts
labor (cheap)
shipping and handling (bulk, so probably also cheap per unit)

Static:
R&D
Advertising
Factory-related (which could very well be lumped in with every other thing nintendo is currently manufacturing)

So unless I'm missing something, it seems all the cheap costs are per-unit and all the big costs are static. The per-unit costs very likely don't add up to anywhere near what they're selling it at, so the question is how many units they need to sell to overcome the static costs. They could very well be projecting a loss right now because of the low volume, but could see a gain down the road.


Don't forget the retailers cut, the OS and free stuff preinstalled on the 3DS. As well as the 2 gb sd card and manuals that no one ever reads.

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#43TrentHawkinsPosted 8/2/2011 8:26:55 PM(edited)

From: LightHawKnight | #042
Don't forget the retailers cut, the OS and free stuff preinstalled on the 3DS. As well as the 2 gb sd card and manuals that no one ever reads.


Retailers mark up, so N. doesn't really see that as a cost I think, and either way I'm hearing it's pretty small. The OS and Free stuff was probably developed in-house which means not only is it a static cost, it's already paid for (and honestly probably fits under R&D in the first place). 2GB SD cards run about $5 retail and you know Nintendo's getting a deal on 'em, and I'm pretty sure printing something like the manual is extremely cheap.

Bloomberg is merely reporting, and Iwata confirms, noting that such "major moves" are necessary.

A scenario where they're currently taking a loss due to volume but could be making a profit later, like I outlined in my first post, is still quite compatible with that statement.
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#44LightHawKnightPosted 8/2/2011 8:30:40 PM

From: TrentHawkins | #063
Retailers mark up, so N. doesn't really see that as a cost I think, and either way I'm hearing it's pretty small. The OS and Free stuff was probably developed in-house which means not only is it a static cost, it's already paid for (and honestly probably fits under R&D in the first place). 2GB SD cards run about $5 retail and you know Nintendo's getting a deal on 'em, and I'm pretty sure printing something like the manual is extremely cheap.

Bloomberg is merely reporting, and Iwata confirms, noting that such "major moves" are necessary.

A scenario where they're currently taking a loss due to volume but could be making a profit later, like I outlined in my first post, is still quite compatible with that statement.


We are hearing, which is not confirmed, could be any price, which does take a toll on the amount they make, since they are not selling it for 250 themselves or 170 that is the store. Cheap stuff still costs money and they do add up. Forgot about the cradle and charger as well, though both are cheap costs as well.

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#45Carbuncle009Posted 8/2/2011 8:43:59 PM
If Nintendo made profit with 250 and is losing with 170, then even it out at 210-220.
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#46SkyCrackersPosted 8/2/2011 9:13:43 PM
Wallydraigle posted...
I'd be genuinely surprised if it cost more than about $20/unit to produce.

Do you actually know anything about the costs of technology? Obviously not. The 3DS's tech is old, but not that old. And parallax barrier screens are relatively new.

It's *vaguely* possible that Nintendo slightly exaggerated and is not selling at a loss, but there's no way they'd be making that much profit. No company as large as Nintendo would even think about telling such a huge lie.
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#47iGenesisPosted 8/3/2011 1:55:05 AM
The only people who should legitimately be caring about how much profit Nintendo makes are stockholders. Otherwise, their financial status has no effect on you whatsoever.
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