According to UBM TechInsights' analysis, the hardware components inside Nintendo's 3DS cost $101.
If UBM TechInsights' estimation is correct, then Nintendo is making a substantial profit on each 3DS unit which retails for $250 in USA.
Needless to say a large part of the extra $149 goes to recoup marketing and research and development costs, as well as general labor, packaging and distribution costs.
Unlike Microsoft and Sony who are used to selling their consoles at a loss then making up for it from software sales, Nintendo has a history of selling its consoles at a profit from day one.
March 26, 2011 - 4:22pm
