I’ve never purchased anything from Swoopo and haven’t seen their financials, but after looking at their site and reading several reviews I’ve decided it is probably one of the most brilliant business models I’ve seen.

What is Swoopo?

Swoopo is an online auction site that sells high end electronics and other goods at ridiculously low prices. I mean silly low. Plasma and LCD TVs regularly go for under $100 – and they aren’t small either. We’re talking over 40 inches. High end laptops and video recorders also regularly sell for under $100. The prices are amazing. But there’s a catch.

How it works: Swoopo’s online auction system differs from the more popular EBay. Instead of allowing bidders to bid any amount, Swoopo only allows bidders to bid in fixed amounts ($0.15) and charges bidders $0.75 per bid. That’s right, Swoopo charges people to make a bid. Here is the bidding process as advertised by Swoopo:

• Bidding on our auctions starts at just 15c, with no reserve prices.
• The price only goes up by 15c with each bid placed.
• If a bid gets placed in the final moments, we extend the auction by up to 20 seconds.
• Each bid placed on an auction costs just $0.75, enabling us to offer such amazing deals.

Watching an auction. If you visit the Swoopo homepage you can see current auctions taking place. As the auction gets down to the final seconds a bid raises the price by $0.15 and adds more time to the clock. Since it only costs a few cents to make a bid, why not take a chance? And that is what people do. Except there are also automated programs that allow bidders to set a limit on how many bids they are willing to make and/or how high they are willing to bid. It can add up quickly! Watching the auctions is almost hypnotizing and I can see how easy it would be to get sucked in.

Is Swoopo a Scam?

I read several online articles stating Swoopo is a scam. But after watching a few auctions and looking at the site, I don’t think it is a scam. I’m pretty sure everything is as advertised. But I also think that some people get upset with the bidding structure or may not understand it.

Bidders have to pay to make a bid, and once the auctions end, the winner gets the item and the losers go home with a lighter wallet and no prize. I can see how this makes for sore losers.

Swoopo is a great deal – for Swoopo!

As I mentioned in the opening paragraph, Swoopo’s business model is amazing. People have a tendency to give in to temptation, and what could be more tempting than a 42 inch plasma TV for less than $100? The beautiful thing (for Swoopo) is that it takes 600+ bids to get to that level, and Swoopo makes money on each bid, plus the winning bid. Swoopo also offers penny auctions, which raises the bid price by one cent instead of fifteen cents. These auctions are also big money makers because thousands of bids take place before the final sale.

What about the items they sell for pennies on the dollar? The folks at Swoopo LOVE selling high end items for pennies on the dollar. It is the best advertising they can get. Swoopo has stated they lose money on many of the items they sell, but my guess is that they make a boatload on the other items. Trust me, they wouldn’t use this business model if it weren’t profitiable.

Should you use Swoopo?

I’m all about saving money. But I wouldn’t rely on Swoopo as a way to purchase electronics at a steep discount. In my opinion, Swoopo equates to little more than gambling. You could win big, but the odds are stacked against you.

Here are a couple more articles about Swoopo:

• Is Swoopo Nothing More Than a Well-Designed Gimmick?
• Swoopo Looks to Set the Record Straight.
• Swoopo – great auction deals or great scam?

Have you used Swoopo? What do you think about it?

~$~

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The US Mint announced this morning that they will phase out the production of new pennies beginning in late 2010, and mint the last batch of pennies on April 1, 2011. The final batch of pennies will be released in a set of proofs which will be auctioned off to coin collectors with the proceeds going toward our national debt. The last run will be limited to 50,000 proof sets, and opening bidding is expected to start at $179.99, which is affordable considering you will own a piece of US numismatic history.

High cost of making new pennies to blame. The announcement follows years of speculation regarding when the US would stop minting pennies, as it actually costs more than 1 cent to produce a penny. On average, pennies cost 1.4 cents to make, making penny production a losing proposition, especially when the US Mint produces billions of pennies annually. Add the fact that “a penny just doesn’t buy what it used to,” and it’s clear the US Government is making the right decision by eliminating the penny.

What will happen to all the pennies? Pennies will remain legal tender, but you will be hard pressed to find stores willing to accept them after April, 2011, because the US Mint will impose additional handling fees for purchasing rolls of pennies and they will institute a penny buy back incentive.

Starting in late 2010, the US Government will begin “Pennies for Freedom,” a penny reclamation campaign designed to collect the estimated 23 trillion unused pennies sitting in people’s homes and coin jars. The pennies will then be melted and the copper will be used for green energy projects throughout the US. This is part of the Obama Adminstration’s plans for reducing US dependence on foreign energy.

How will stores handle transactions without pennies? We are moving toward a cashless society and most transactions are handled electronically with credit cards and ATM cards, or with a check. So eliminating the penny won’t actually affect most people. For people who insist on paying cash, the US Mint recommends that stores round up or down to the nearest nickel. Note: As a side effect, expect state and local sales taxes to increase to round up to the nearest nickel as well to make accounting easier for stores and cashiers.

Eliminating the penny benefits everyone! No more pennies means we all win! It is estimated the average person loses $38.92 in pennies throughout their lifetime. Change will be easier to count and manage, and purses will be lighter. No more looking under car seats, under couch cushions, sifting through the coin jar, etc. I’m looking forward to it already!

Penny Fun Facts:

• It costs more than 1 cent to make a penny – Snopes.
• It is illegal to melt US coins to sell for scrap metal – US Mint.
• Composition of the US Penny – US Mint.
• US Penny – Wikipedia.
• Efforts to eliminate the US Penny – Wikipedia.
• How Much Is a Penny Really Worth? Not Enough to Keep Carrying It That’s For Sure – Own the Dollar.
• A Penny Saved is Worth More Than a Penny Earned – Cash Money Life.

$$$ And if you haven’t figured it out by now – Happy April Fools Day!

Disclaimer: No pennies were harmed in the writing of this blog article. All facts, figures, and other information were made up on the spot or carefully edited for effect, except for the Penny Fun Facts, which lead to legitimate sources of information.

penny photo credit: Nbauer.

~$~

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I don’t know how many people have been keeping up with the ongoing “feud” between Jon Stewart, CNBC, and Jim Cramer, but it’s pretty funny. Not the underlying economic problems our country is facing, but the back and forth media battle between these guys.

Jon Stewart Vs. Jim Cramer: The Battle of Brawl Street

I don’t think Stewart set out to crucify Cramer, but as the media ran with the story, he did what any good comedian would do – run right along with it. After all, ratings are ratings, right?

Quoting from the Comedy Central commercial leading up to this spot… “It’s been twittblogged on the interscape and people have talked about how much people have talked about it…” Without further ado:

Stewart slams CNBC (8:29):

This clip started it all! Stewart slammed the “financial experts” at CNBC, including Mad Money’s Jim Cramer. Cramer’s response in the media set up the next video where Stewart slams Cramer.

.

In Cramer We Trust (5:04):

Watch Jim Cramer mercilessly skewered by Jon Stewart. Classic. After this, the only possible next action is to bring these two entertainers together.

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Cramer and Stewart interview 1 (5:47):

Jon Stewart invites Jim Cramer to his show so Cramer can defend his honor and they can discuss things man to man. The segment opens with a friendly discourse, but you get the feeling that Stewart is setting something up.

.

Cramer and Stewart interview 2 (11:24):

Stewart really lights into Cramer here as he exposes Cramer for market manipulation… among other things. The full video of Cramer discussing market manipulation is directly below this one. Part 3 of the Stewart/Cramer interview follows the market manipulation video.

.

Cramer in trouble with the SEC (6:45): You can watch the full Jim Cramer interview where Cramer discusses market manipulation. This interview got Cramer into trouble with the SEC.

Cramer and Stewart interview 3 (2:19):

Stewart and Cramer both call for harsh actions against criminals on Wall Street and the general problems that caused the financial crisis.

.

My thoughts on all this

For pure comedic value, it’s fun. For anything else, it’s not worth it. No investor will ever be right 100% of the time. For every time that Cramer was wrong, there were other times he was right and made a lot of money for himself, his charitable trust, and other people. Cramer himself will be the first to admit that he makes mistakes, and even refers to himself as an entertainer in the interview.

Stewart is an intelligent man, no doubt. But not a financial professional and there is no way he could have foreseen this economic crisis. Stewart is a comedian and can rip into the financial industry from behind that wall of security… just as I can with my blog.

What are your thoughts?

~$~

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My wife and I just finished watching the Super Bowl. I didn’t have a vested interest in the outcome of the game, but I was rooting for the Cardinals – mostly because Kurt Warner is such an easy guy to root for. Regardless of whether or not your team won, you have to admit it was fun to watch – especially that fourth quarter!

Of course, the commercials are also a lot of fun to watch and my wife and I compiled our list of favorites. Without further ado, here are our favorite Super Bowl commercials from 2009.

Top 10 Super Bowl Commercials from 2009

Pepsi – Every Generation Refreshes the Young

This one was probably the favorite for my wife and I. A lot can be said with pictures and this commercial was well done!

Bud Light Drinkability – “The skiing commercial”

This commercial is classic. I imagine we’ll see a lot more of this commercial for the rest of the winter.

Doritos Crystal Ball

This was another of my wife’s favorites. Classic high school humor.

Cheetos – “the pigeon commercial”

You know you’ve wanted to do something like this before!

Mr. & Mrs. Potato Head

Mr Potato Head is one smart potato! Watch how he handles Mrs. Potato Head.

Budweiser – “Fetch”

Talk about overachieving!

Pepsi Max – “I’m Good.”

Ouch! These look painful! My wife wasn’t too keen on this one, but I thought it was worthy of a mention.

Best Movie Preview – GI Joe

GI Joe was one of my favorite toys as a kid, and this movie looks like it will be a good one.

Audi w/ Jason Statham of The Transporter fame

To be honest, I’m not too sure what this was about, but the special effects were great! This was definitely the best car chase scene of the night.

Best commercial featuring an over the hill rock band:

I admit I’m a fan of the Smashing Pumpkins. But what have they done lately? I mean, besides the car commercial?

Other notable commercials

There were a couple other notable commercials – the Conan Bud Light commercial, another Doritos commercial, the NFL Network with Darren McFadden, and the Denny’s commercial featuring a free Grand Slam breakfast.

And now a word from our sponsor:

What was your favorite Super Bowl commercial?

~$~

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In light of the current economic crisis and subsequent drop in the stock markets, the book on investing has been rewritten. The following are new stock market definitions for common terms:

• CEO. Chief Embezzlement Officer.
• CFO. Corporate Fraud Officer.
• BULL MARKET. A random market movement causing an investor to mistake himself for a financial genius.
• BEAR MARKET. A 6 to 18 month period when the kids get no allowance, the wife gets no jewelry, and the husband gets no sex.
• VALUE INVESTING. The art of buying low and selling lower.
• P/E RATIO. The percentage of investors wetting their pants as the market keeps crashing.
• BROKER. What my broker has made me.
• STANDARD & POOR. Your life in a nutshell.
• STOCK ANALYST. Idiot who just downgraded your stock.
• STOCK SPLIT. When your ex-wife and her lawyer split your assets equally between themselves.
• FINANCIAL PLANNER. A guy whose phone has been disconnected.
• MARKET CORRECTION. The day after you buy stocks.
• CASH FLOW. The movement your money makes as it disappears down the toilet.
• YAHOO. What you yell after selling it to some poor sucker for $240 per share.
• WINDOWS. What you jump out of when you’re the sucker who bought Yahoo @ $240 per share.
• INSTITUTIONAL INVESTOR. Past year investor who’s now locked up in a nuthouse.
• PROFIT. An archaic word no longer in use.

Reader entries:

• FEDERAL BAILOUTS. American capitalism’s replacement.
• BAILOUT. Unwarranted bonus to greedy executive board
• EBIT. Earnings before irregularities and tampering.
• EBITDA. Earnings before I trick the dumb auditor.
• BUDGET. Written proof that you can’t afford the new boat (or the new house, the new car, the private school education….)
• MISDEEDS. Crimes.
• COMMISSION. The only reliable way to make money on the stock market, which is why your broker charges you one.
• STOCK. A magical piece of paper that is worth $53.28 until the moment you buy it. It will then be worth $6.97

Did I miss any? Leave a comment!

~$~

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Yesterday, the Department of Justice approved the merger between XM Radio and Sirius Satellite Radio. However, this is only the first step before a merger can actually take place. It still needs to be approved by the Federal Communications Commission (FCC).

The merger was officially proposed over a year ago, but faced several legal roadblocks – the main one being the ruling the FCC gave when they issued XM and Sirius operating licenses. It stated they were not allowed to merge due to anti-competitive reasons.

However, the two companies have been losing money for years (have yet to turn a profit, actually), and proposed a merger in order for both companies to survive. They argue they are currently at the point where they need to merge or die.

Is the XM-Sirius Merger Good For Consumers?

Pros. It will now be possible for subscribers to get access to all the major professional and college sports packages, as well as access to the most popular DJs who are currently locked into exclusive, long-term deals. Currently, satellite radio listeners have to choose from providers that have exclusive rights to sports such as Major League Baseball (MLB), the National Football League (NFL), NASCAR, and certain college sports divisions, as well as popular DJs such as Howard Stern and Oprah.

Cons. The big question everyone is asking concerns subscription prices. Will the monthly subscription fees change? The current prices for each service is $12.95 for a basic subscription. However, because FCC approval is needed for this merger to occur, the management teams from both XM Radio and Sirius Satellite proposed allowing subscribers to create their own packages and pay as they go. The a la carte option should range from about $6.99-16.99 per month, depending on features.

How will an XM-Sirius merger affect shareholders?

The initial response on Wall Street was positive. XM ended the day up about 15.5% and Sirius was up about 8.5%. However, if the merger is not approved by the FCC, it is likely those gains will drop. If it is approved, these companies have a much better chance at long term survival and profitability.

Is the proposed satellite radio merger a good idea?

The satellite radio companies believe they cannot survive without merging, but several opponents point out this will create a monopoly and it will be anti-competitive. The satellite radio companies argue their main competition doesn’t come from each other, but from land based radio, HD radio, interneet radio, mP3 players, iPods, cell phones, and hand held video games.

Is it anti-competitive? Personally, I don’t think a merger is a bad thing as long as the subscription prices remain affordable for the consumer. What do you think?

Disclosure: I own about 13 shares of Sirius Satellite’s stock. I got a $50 bonus to sign up for ShareBuilder a long time ago and used the bonus to buy $50 worth of Sirius. It is worth a lot less than $50 now.

Also, don’t buy anything based on this article. Use your own judgment.

~$~

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Yesterday, March 13, 2008, the US Department of the Treasury released the new $5 bills into circulation. The new $5 bills were included among currency shipments from Federal Reserve to banks, which will distribute the money to customers and businesses. People will start seeing these new bills as soon as this weekend.

Changes to the new $5 bill

Changes to the front: There are several striking visual changes to the new $5 bill. There is a splash of light purple next to Lincoln’s portrait that fades to gray as it spreads toward the bill’s edges. To the right of Lincoln’s portrait (as you view the bill), there is an imprinting of The Great Seal of the United States. Surrounding Lincoln’s portrait and The Great Seal of the United States is a band of purple stars.

Changes to the back: The most obvious changes to the back side of the $5 bill include a large purple “5″ in the bottom right corner of the bill, small yellow “5″ numerals on the back, and a multitude of changes to the micro-printing and other security features.

Security features of the new $5 bill

The descriptions of the security features are taken from the US Government press release for the new $5 bill.

Watermark: There are now two watermarks on the redesigned $5 bill. A large number “5″ watermark is located to the right of the portrait, replacing the previous watermark portrait of President Lincoln found on older design $5 bills. Its location is highlighted by a blank window incorporated into the background design. A second watermark — a column of three smaller “5″s — has been added to the new $5 bill design and is positioned to the left of the portrait.

Security thread: The embedded security thread, which is located to the left of the portrait on older-design $5 bills, has moved to the right of the portrait on the redesigned $5 bill. The letters “USA” followed by the number “5″ in an alternating pattern are visible along the thread from both sides of the bill. The embedded security thread glows blue when held under ultraviolet light.

Rules for reproducing US currency

Don’t go printing these out! Here is what you need to know if you want to reproduce images of US currency:

Regulations for Reproducing U.S. Currency
PART 411 — COLOR ILLUSTRATIONS OF UNITED STATES CURRENCY
Authority: 18 U.S.C. 504; Treasury Directive Number 15-56, 58 FR 48539
(September 16, 1993)
411.1 Color illustrations authorized
(a) Notwithstanding any provision of chapter 25 of Title 18 of the U.S. Code, authority is hereby given for the printing, publishing or importation, or the making or importation of the necessary plates or items for such printing or publishing, of color illustrations of U.S. currency provided that:
(1) The illustration be of a size less than three-fourths or more than one and one-half, in linear dimension, of each part of any matter
so illustrated;
(2) The illustration be one-sided; and
(3) All negatives, plates, positives, digitized storage medium, graphic files, magnetic medium, optical storage devices, and any other thing used in the making of that illustration that contain an image of the
illustration or any part thereof shall be destroyed and/or deleted or erased after their final use in accordance with this section.
(b) [Reserved].

For more fun, explore the interactive feature for the new $5 bill. Click on the link under the small picture of the $5 bill – “Explore the Interactive $5 Bill.” This launches a separate window, but is pretty cool!

Photo credit: $5 bill front and back – The Associated Press (link no longer available). All other photos: MoneyFactory.gov.

~$~

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Yesterday, Toshiba announced they will stop producing the HD-DVD, which puts a definitive end to the questions concerning which high-definition DVD format would dominate the markets. This wasn’t really a surprise to many people, as the Blu-Ray format was backed by most of the major Hollywood movie studios, and several technology giants. Last week, Wal-Mart and several retailers also announced they would only carry Blu-Ray DVD products in the coming months.

What does this mean for consumers? Well, until recently, people had to choose between two competing high-definition DVD formats if they wanted the most up to date technology. The only problem was that for the first few years, no one was sure which format would emerge as the standard. Each side, the Toshiba backed HD-DVD format, and the Sony and Panasonic backed Blu-Ray technology, lined up movie studios, production and manufacturing companies, etc. Both companies poured billions into research, development, and advertising in an effort to make their product the world standard. The winner would stand to earn billions of dollars in the coming years.

Fear of buying an obsolete product. Because consumers didn’t know what the outcome would be, many people were afraid to make the initial investment in the electronic hardware and the DVDs, both of which are considerably more expensive than regular DVDs and DVD players. Now, that the answer for which high-def format will be the standard has been resolved, consumers pretty much have the green light to go out and buy the Blu-Ray format high-def DVD player and DVDs without fear of the technology becoming obsolete right away.

Don’t rush out to buy it just yet. I don’t think it is a good idea to rush out there and immediately buy a Blu-Ray DVD player and a vast library of Blu-Ray DVDs. And if you have a CRT-TV like I do, the difference probably isn’t even noticeable. You will need a large screen, HD-TV to really get the maximum benefit of the high-definition DVD players.

Buying the player right away is not a good move. The demand for Blu-Ray DVD players will increase right now because the format war is officially over. This could keep the prices high for awhile until the demand drops. Don’t be surprised if new manufacturers license this technology and begin producing it in the coming months, which will further depress the prices. As with all technology, the player prices will continue to drop. I think if you wait a few months, the price will be much more affordable than it is now.

The Blu-Ray players are backwards compatible with standard DVDs, so you don’t need to rush out and buy dozens of new movies. If you have a Blu-Ray player, buy the Blu-Ray DVDs as needed.

Early technology adopters pay the highest price. Beyond higher hardware prices for adopting new technology, there are other associated costs such as the accompanying software, DVDs, upgrades, etc. Unless the new technology makes a fundamental change in your life or your work, it is often best to wait until it becomes standardized. Continual improvements and cheaper technology will drive prices down, and eventually you will be able to purchase that new technology at a reasonable price… or decide that you just don’t need it after all.

~$~

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It’s true! You can earn $1,000,000 by not buying a Nintendo Wii!

What? You don’t believe me? All right. Let’s look at the numbers and see if I can show you how not buying a Nintendo Wii (and a few key accessories along the way) can earn you $1,000,000!

First, let’s start with the cost of a Nintendo Wii. If you are lucky enough to find a console at the retail price of $250, you are extremely lucky! Otherwise it will cost you about $450 via Amazon, and possibly more via eBay! When you consider tax, shipping, or buying a Nintendo Wii package that comes with different items included, you will end up spending a lot more than the suggested retail price of $250. Let’s assume you are able to purchase a Nintendo Wii for $350 (that is a very fair assumption in the current environment). Running total $350.

Next, you have to buy a few key accessories! The Nintendo Wii is set up to play up to 4 players, so let’s assume you buy a package that comes with 2 controllers. You will still have to buy two more. Two Wii Controllers will cost you $80, let’s also assume you need 2 Wii Nunchuck Controllers to play a couple games. 2 of these will run you $40.

Two of the most popular games on the market are Dance Dance Revolution and Guitar Hero. Dance Dance Revolution requires with a dance floor that you dance on with the game, and Guitar Hero requires you to purchase a special guitar controller that plugs into the Nintendo Wii console. Buying the game and accessories for either Dance Dance Revolution ($100) or Guitar Hero ($150) will set you back a little bit. For this assumption, we will only buy one, and we will use the average price. Add $125.

There are also other accessories such as a steering wheel, sports packs, swords, boxing gloves, and more! Let’s take care of the common accessories and just buy the Total Action Kit, which is $99.

Assuming you buy only one of either Dance Dance Revolution or Guitar Hero, and a fair assortment of the other accessories, it is easy to estimate spending $350 for accessories. Running total $700. (yes, I rounded up $6).

Games, Games, Games! No gaming system is complete without adding a few games to the mix. It’s hard to make a fair assumption for how many games you “need” to go with your system. Obviously some people have dozens of games, while others have very few. For this exercise, let’s assume you buy 1 new Wii game every other month (average cost $45), and we will assume you download one legacy Nintendo game every other month (cost $5). The total cost for one year of games will run you $300. That is a lot more than most people would assume before they purchase the console. Remember, buying a Nintendo Wii is not a one-time fixed cost! Running total $1,000.

Opportunity cost. How much time will you spend playing video games? Let’s assume you play for an hour a day and two on Saturday and Sunday For a total of 9 hours. I’ll give you the benefit of the doubt that you won’t play 10 hours straight on Sundays. If you work those hours instead, you could be earning some nice money on the side. The national minimum wage recently increased, but since you are so Wii-savvy, I will assume you can get a moonlighting gig hocking Nintendo Wii and Wii related accessories at Best Buy, which pays more than minimum wage (figure in the $8-10/hr. range). After taxes, I will assume an even $5 per hour, at 8 hours a week (I was generous and gave you a lunch break), for 50 weeks a year (again, I was generous and gave you a vacation break). Assuming you wouldn’t make more money elsewhere, your total opportunity cost is $2,000 per year. I bet you didn’t think about that did you? Running Total $3,000.

Other costs. Video games use electricity, and so does the entertainment system you run it through. You would probably use close to $10 per month, but we’ll assume $100 annually. How would you like a big screen TV to go with your Wii? How about miscellaneous cables, connectors, memory cards, replacement accessories, or patching the drywall after you throw your controller? OK, we won’t count the big screen TV, because you will want that for watching football and movies as well, and let’s face it, a big screen TV is an American right of passage. But the others… they are legitimate costs. Annual assumption $50. Running total $3,150.

Now let’s invest the total and add some time. Take your first year’s Nintendo Wii expenditures ($3,150), throw it into an index fund and let it ride. We’ll also assume you play the Wii for 5 years, so we can add annual amounts for opportunity cost ($2,000), electricity ($100), and video games ($150, assuming you buy half as many games after the first year) for a total annual addition of $2,250 for 4 more years.

Assuming we start with $3,150 and earn 10% compound interest, you will have $3,465 at the end of year one. Next, we will add the $2,250 at the beginning of each additional year, and add 10% to that new figure. At the end of 5 years you will have just over $16,600.

From the time you stop adding money to the pot, it will take you a mere 43 years to turn that amount into $1,000,000! I told you one could earn $1,000,000 by not buying a Nintendo Wii!!!

Wait a minute! You don’t expect me to believe any of this do you? No. Well, I think the math is correct, but that’s about it. This article is filed under “fun money.” It’s the holiday season – go have fun!

Note: This article was originally inspired as a farcical response to the article How to Earn $1 Million by Not Watching TV (note this article is no longer available), by Jeffrey Strain from Saving Advice. For a similar view, read my article, Save $10 Million By Not Building Model Trains!

~$~

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How much does a Nintendo Wii cost? Well, the list price is about $249. Right now you can buy a Nintendo Wii on Amazon for about $300. The Wii is the hottest gift on the market right now, and the price is so high because availability is low. Apparently, Nintendo “misjudged” the demand for the Wii this holiday season. Or maybe it’s just a great marketing ploy.

Why is it so popular? The Wii is so popular because it is a revolutionary gaming system – unlike anything else on the market. It is interactive, and works on user movements in a way that no other system can. You swing the controller like a tennis racket to play tennis games, and you use an underhand motion with the controller to bowl. Sensors in the controller and unit interact with the television to give the player a realistic, interactive experience. Everyone who plays the machine loves it.

Some of the more popular games include Dance Dance Revolution, which has an interactive dance floor, Guitar Hero, which utilizes a guitar shaped controller, most of the sports games like tennis and bowling, and several other games which use guns based on laser technology.

So how much does the Nintendo Wii cost?

The Unit: Unless you can find a Wii at the list price of about $250, the gaming console will currently set you back around $450. But that is only part of the cost…

Don’t forget the controllers: The Wii, like most gaming systems, is more fun when you play it with other people. Unfortunately, the system does not come with enough controllers to go around. Some games can play up to four people at a time, so depending on which package you purchase, you should also expect to shell out about $30-40 per extra controller. Don’t forget some of the specialized controllers for games such as Guitar Hero ($170 for the game pack), Dance Dance Revolution($40 for the pad, or $100+ for the bundle), Wii Nunchuck Controller($20), or a Wii gun controller ($15+) for various shooting games. You can also purchase a Wii Classic Controller($19), Wii Remote Controller($40), Wii Controller Charge Station ($30). If you want to cover almost everything at once, you can buy the Total Action Kit($99), that comes with a steering wheel, golf putter, tennis racket, baseball bat, two swords, and a gun. There are also boxing gloves available.

Now for some games: Most games will set you back anywhere from $30-50. In addition to the great games mentioned above, no Nintendo collection is complete without at least one Super Mario game or at least one game from the The Legend of Zelda series. The Wii also has a lot of great sports games. If you want to save some money and purchase some great games, Nintendo has made its entire inventory of games available for download and play on the Wii. There are a lot of great bargains on the older games, some of which can be had for as little as $5!

Accessories anyone? Nintendo Wii accessories include memory cards, non-slip grips, console stands, carrying cases, game cases, and tethers to keep people from accidentally throwing the controller across the room.

Other Costs? I suppose if you wanted to get technical, there is the associated cost of electricity, or the opportunity cost of spending several hours playing games when you could be doing something “productive.” But the Nintendo Wii is one example of a gaming system that is productive. Play one for a few hours and you will realize that you are getting real exercise and probably relieving more stress than you thought possible. And even when you add all the costs together, those two benefits alone are worth it.

What is the total cost of a Nintendo Wii and some games?

Total cost of Wii: almost $1000.

This figure assumes the purchase of a Nintendo Wii system at $450 (which is currently the easiest way to purchase it), Dance Dance Revolution game pack ($120), Guitar Hero game pack ($170), 3 extra controllers (3 x $15), and 4 other games (avg of $40 ea = $160). Your costs can easily cross the magic $1,000 mark if you buy specialized controllers or other accessories.

The best part is, you can mix and match your gaming requirements, so you may end up spending much less than this for your system if you decide to buy one. If buying a Nintendo Wii is on your wish list this Christmas, I wish you the best of luck in finding one!

Is the true cost of a Wii over $1,000,000?!?

Read how not buying a Nintendo Wii can make you a millionaire! (just be sure to change the words model train to Nintendo Wii throughout the article!).

~$~

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