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If you shelled out $250 for a Nintendo 3DS, it might interest you to know that it probably only cost Nintendo $103 to produce that new handheld device. That’s according to a report from research firm iSuppli. Meanwhile, UBM TechInsights, estimates that it only costs $101 to produce a single 3DS unit.
Previously, the only hints to the true costs of the 3DS were comments by Nintendo personnel like Reggie Fils-Aime, who said that the device would be profitable at launch, or Satoru Iwata, who ruled out selling the device below cost. To put things in perspective, the Xbox 360 took a year to reach profitability and the PS3 took over three.
iSuppli's breakdown also served to uncover more detailed technical specifications of the device’s components. The handheld has a dual core ARM processor, 756 MB combined RAM, and the most expensive single piece of hardware is the 3DS screen for $33.80.
The suggested retail price of the 3DS may sit at $249.99, but Nintendo isn't necessarily walking away with $150 for every 3DS sold. The breakdown does not include development costs, infrastructure costs, or possible software licensing fees.
Mar 31, 2011
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