Quote:
Even after lopping $50 off, Nintendo is still very likely to take in a hefty profit on every Wii system sold. In early 2008, Forbes reported that the Big N made $6 on every Wii released to the wild. Earlier this year, analyst Koya Tabata of firm Credit Suisse said that since that time the cost to produce Nintendo's videogame platform had fallen by more than 45 percent.
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http://wii.ign.com/articles/102/1027488p1.html
So if I do my math right, they were making $6 off the presumably $250 package, which puts Nintendo's cost at $244 in 2008. If N's cost dropped 45%, that means it now costs them $134.20 to make. That means even at the new price point, they're raking in the dough. Everytime they sell a million consoles even if their costs never drop again, they make $65.8 million. That's a ridiculous amount of money.