Nintendo's 3DS Game Player Hardware Costs 33% More Than DSi, ISuppli Says

Nintendo Co.’s component costs for the new 3DS handheld player are at least 33 percent higher than with the preceding DSi model because of the 3-D display, extra memory and motion-sensors, researcher IHS Inc.’s ISuppli said.

The total cost of the 3DS hardware is $100.71, compared with $75.58 for DSi based on prices at the time of the earlier model’s introduction more than two years ago, the industry researcher said in a statement yesterday. Yasuhiro Minagawa, a spokesman at Kyoto-based Nintendo, declined to comment.

The 3DS, which plays 3-D images without the need for special glasses, went on sale in the U.S. and Europe in the past week. The player sold about 371,000 units in two days following its debut in Japan on Feb. 26, according to Tokyo-based researcher Enterbrain Inc.

Nintendo fell 1.4 percent to 21,540 yen as of the 11 a.m. trading break on the Osaka Securities Exchange. The shares have lost 9.6 percent this year, after climbing 8.1 percent in 2010.

The 3DS screens are crisper and larger, raising the cost of the displays to $33.80, from $21.95 for the DSi, IHS ISuppli said. Both models use displays made by Sharp Corp., it said.

Nintendo also increased memory storage eightfold to 16 gigabytes, costing $8.36, compared with $3.61 for the DSi, according to the report. The inclusion of a gyroscope and accelerometer increased the cost of user-interface parts to $6.81 from $3.98, it said.

The cost assessment doesn’t include manufacturing, software, licensing and royalty costs, IHS ISuppli said. At current costs, the difference between the materials bill for the two models would be even greater, the researcher added.

To contact the reporter on this story: Pavel Alpeyev in Tokyo at palpeyev@bloomberg.net.

To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net.

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