On Sunday, Forget the Box reported that anonymous sources had divulged fairly specific pricing details regarding the component and construction cost of Nintendo's upcoming next-generation gaming system.
Named Wii U, the gaming console uses a tablet as the main controller for the system. This tablet allows a full range of controls of the on-screen action, and includes a camera on the tablet as well as a high resolution second-screen display that gamers can take with them.
Sources close to the production of Wii U have indicated that Nintendo is aggressively attempting to cut the hardware costs in order to rebuild confidence in its investors.
In addition to piecing out the total cost of the tablet controller at $50, the rumor report also details that the NFC (Near-field communication) capabilities in each controller will cost $5, with an expected drop to $1 in the near future. The cameras in the tablet controller will cost around $6 per device, and the touch screen is reported to cost $14.
In aggregate, early reports are that the Wii U will cost approximately $180 to manufacture, which will generate a tidy $120 in profit margin for Nintendo if the rumored $300 price tag is accurate.