[Sigia-l] Game Console Business Model (Was: WhatsWrongWithU)

[Dave Chiu]

On Feb 6, 2007, at 5:02 PM, Timothy Karsjens wrote:

> It is the business model of any console manufacturer to lose money  
> on the hardware itself and like a previous poster said, make money  
> on subscriptions and software.  Sony and Nintendo do it as well.

Actually, I was surprised to find out that the Nintendo Wii has a per  
unit manufacturing cost of under $200, which means Nintendo is  
actually making money on their consoles, assuming a retail price of  
$250.

http://www.engadget.com/2006/12/15/wii-manufacturing-costs-ring-up-to- 
just-158/

Dave