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Permanent magnet machines are widely used in wind turbines due to theirs prominent characteristics. The direct-drive wind generators have large size and high manufacturing cost because of low operational speed so that these disadvantages deteriorate when the rated output power increases. Therefore, the main objective of the optimal design proposed in this paper is to minimize the wind turbine system cost maintaining the high efficiency characteristic. Thus, a multiphysics model of the wind generation system is firstly presented to be the basis of the optimal design. One of the paramount feature of the current study is to precisely calculate all of the energy production costs, including the manufacturing cost of generator, power converter, electrical subsystem, and also wind turbine tower cost. In order to obtain the optimum solution, the Genetic Algorithm (GA) optimization method is implemented with consideration of a predetermined proper range for optimal variables. By comparing the optimal design results with those attained by the innerrotor permanent magnet generator, the superiority of the proposed method is justified in terms of the total volume, weight, and annual output energy. Eventually, the finite element analysis has also been carried out to validate the outcomes obtained from the proposed optimal design. [ABSTRACT FROM AUTHOR]