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Old 09-17-2002, 09:35 AM   #1
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Nintendo rumored to source Game Cube assembly to Q-Run Technology

Nintendo is rumored to have farmed out assembly of its Game Cube game players to Taiwanese PC maker Q-Run Technology, according to people with knowledge of the deal.

Q-Run, an affiliate of Foxconn Electronics (the trade name of Hon Hai Precision Industry), declined to comment on the report.

Nintendo used to manufacture the Game Cube in-house, but earlier announced plans to seek low-cost, China-based contractors to assemble the video game consoles using Japan-made parts to trim costs. Sources said it had approached several electronics makers with China operations, including Foxconn and Wistron, which currently supply to competing console vendors Sony and Microsoft, respectively.

Sources said that under the order, Q-Run will produce 300,000 Game Cube machines in China at a per-unit contract price of US$100. The order could lead to a potentially lucrative long-term supply agreement, they noted, as Nintendo has predicted worldwide sales of 16 million units for the fiscal year ending March 2003.
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Old 09-17-2002, 04:11 PM   #2
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Does Nintendo squeak out a profit on hardware?

I wonder what the cost is to retailer? If production costs are 100 bucks per Cube, and they retail for doesn't leave much room for the other expenses in the packaging and distribution expenses.
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Old 09-17-2002, 04:16 PM   #3
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Originally they were taking a small loss on the GC.. something of around $30 per console. That figure would of course, go down over time (I don't know what their current loss per console is.. or even if there is one)

This could pave the way for even more lower costs- perhaps giving the opportunity for agressive price cuts from Nintendo- ala Microsoft.
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Old 09-18-2002, 08:38 AM   #4
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Even if they are making a loss still it'll be a fraction of what MS loses per system sold. Good job they have the rreserves they do.
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