You guys don't actually believe Target pays Nintendo $169 for each 3DS they get do you? They get it from a wholesaler for a cost a decent bit cheaper than the retail cost. One of my friends owns a shop and has a wholesalers license, an expensive license that authorizes him to buy a product direct from a wholesaler. He knows how much cheaper a product actually costs vs its retail shelf price. A price that he is prevented by NDAs from disclosing.
That wholesaler in turn gets the device for cheaper than what Target pays them for it.
Also do you think marketing is free, customer support is free, replacing defective systems is free, processing returns is free, importing and selling a device in another country is free?
wsippel said:
It doesn't. The BoM is proven wrong, makes no fucking sense and was pure guesswork to begin with.
How do you know that?
People are completely misreading what Nintendo said to fit their own agenda.
Unless I missed a press release, Nintendo never once said that each 3DS costs over $169 to produce.
What they said was that selling the system at a retail price of $169, they stand to lose money on it. That tells us very little about the actual manufacturing costs.
You have no knowledge of how much of that $169+ cost is attributed to actual production costs and how much of it is due to the dozens of costs that exist beyond purely the manufacturing costs.