Actual cost of common gadgets.

SpawnAeroJohn · 07-14-2009, 01:34 PM

In my daily browse of news I found this today and found it very interesting. I hope I’m posting this in the proper section. I didn’t see a section for off topic discussions.

Apparently some of our toys cost way more to produce then we pay for. Obviously its to be competitive and to make a footprint in the industry but its still interesting.

Actual Cost To Make Popular Gadgets ZiggyTek Blog

Other senceless facts. I also read that it costs $11 to make an xbox controller so that is probobly where they brake profit. Accessories and games.

But it cost microsoft over 100 million dollars to create the GTA5 game. Although they did sell 6 million coppies in its first few weeks.
Brainiacs

Thought I'd just share soemthing that blew my mind.

VCuomo · 07-14-2009, 02:09 PM

Those are not the "actual" costs of those items - the "actual" costs have to include Research and Development costs, marketing costs, etc..

MightyBobo · 07-14-2009, 02:11 PM

Its well known that console companies lose money on almost every single console they sell. The games and accessories is where they pick it up.

theDreamer · 07-14-2009, 02:13 PM

These are usually tools I see to show price gaps, yes they do not include R&D but you also have to understand that these companies do not even pay what is on this report many times. The 3G S iPhone is written down at about 170 dollars, I can bet you Apple does not pay nearly that much to produce the phone.

Also, R&D costs are usually not recovered in most gadgets through the actual sale of the gadget, it is from the additional features many have. Controllers for consoles, applications on cell phones, charger for you MP3 player (by the manufacture of the MP3), etc.

tvfreakazoid · 07-15-2009, 04:07 AM

I hear back a few years ago they spent $15 million for a game. i forget what game it was, but now, companies are spending 5 times or more than that. CRAZY how much of an increase in only a few years.

Quote:

Originally Posted by SpawnAeroJohn

In my daily browse of news I found this today and found it very interesting. I hope I’m posting this in the proper section. I didn’t see a section for off topic discussions.

Apparently some of our toys cost way more to produce then we pay for. Obviously its to be competitive and to make a footprint in the industry but its still interesting.

Actual Cost To Make Popular Gadgets ZiggyTek Blog

Other senceless facts. I also read that it costs $11 to make an xbox controller so that is probobly where they brake profit. Accessories and games.

But it cost microsoft over 100 million dollars to create the GTA5 game. Although they did sell 6 million coppies in its first few weeks.
Brainiacs

Thought I'd just share soemthing that blew my mind.

07-14-2009, 01:34 PM	#1 (permalink)
SpawnAeroJohn NOT A CURRENT VENDOR Join Date: Jun 2009 Location: Chicago Posts: 609 Drives: you Rep Power: 16	Actual cost of common gadgets. In my daily browse of news I found this today and found it very interesting. I hope I’m posting this in the proper section. I didn’t see a section for off topic discussions. Apparently some of our toys cost way more to produce then we pay for. Obviously its to be competitive and to make a footprint in the industry but its still interesting. Actual Cost To Make Popular Gadgets ZiggyTek Blog Other senceless facts. I also read that it costs $11 to make an xbox controller so that is probobly where they brake profit. Accessories and games. But it cost microsoft over 100 million dollars to create the GTA5 game. Although they did sell 6 million coppies in its first few weeks. Brainiacs Thought I'd just share soemthing that blew my mind.

07-14-2009, 02:11 PM	#3 (permalink)
MightyBobo A True Z Fanatic Join Date: Feb 2009 Location: Las Vegas, NV Posts: 8,465 Drives: No cars; only bikes Rep Power: 52	Its well known that console companies lose money on almost every single console they sell. The games and accessories is where they pick it up. __________________ I don't own a car anymore.

07-14-2009, 02:13 PM	#4 (permalink)
theDreamer A True Z Fanatic Join Date: Feb 2009 Location: Texas Posts: 30,879 Drives: 370z Rep Power: 4210	These are usually tools I see to show price gaps, yes they do not include R&D but you also have to understand that these companies do not even pay what is on this report many times. The 3G S iPhone is written down at about 170 dollars, I can bet you Apple does not pay nearly that much to produce the phone. Also, R&D costs are usually not recovered in most gadgets through the actual sale of the gadget, it is from the additional features many have. Controllers for consoles, applications on cell phones, charger for you MP3 player (by the manufacture of the MP3), etc. __________________ theDreamer's Z // Fast Intentions // Uprev // GTM // HKS // TEIN theDreamer's Silvia // URAS // GREDDY Houston Zs // Facebook // Twitter // Instagram

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07-14-2009, 02:09 PM	#2 (permalink)
VCuomo Track Member Join Date: May 2009 Location: SoCal Posts: 887 Drives: BMW 335i Sport Rep Power: 16	Those are not the "actual" costs of those items - the "actual" costs *have* to include Research and Development costs, marketing costs, etc..