Since the Wii released in November of 2006, it's progressively become a more profitable venture for Nintendo. Not just because it has been constantly flying off retail shelves, but because Nintendo has managed to drastically cut down manufacturing costs during its life, Koya Tabata of Credit Suisse suspects. In fact, Tabata says costs are down a whopping 45%, which could mean Nintendo is banking much more than the previously reported $6.
Of course, any talk of reduced manufacturing costs is inevitably going to lead to talk of a price cut, which Tabata says is a real possibility. Emerging markets could be the first to see a price cut, Tabata commented. With Sony hoping to take market share away from Wii with its $99 PS2, it might be the right time for Nintendo to trim some fat.
[Via Eurogamer]
Reader Comments (79)
Posted: Apr 7th 2009 12:03PM samfish said
My theory is we'll see a Wii price cut in around September, whether it needs one or not. Sony will almost surely drop the PS3's price sooner or later which will cause MS to respond (even if it's not cost effective), which will in turn cause Nintendo to respond.
Posted: Apr 7th 2009 12:10PM (Unverified) said
With all this money Nintendo is pocketing per every Wii and DS/DSi, think what plans are in store for the Wii 2. My lord.
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Posted: Apr 7th 2009 12:11PM Chris DPSN AggieCEO XBLThe Aggi said
I dont see MS dropping the price This year.They would have to sale the Arcade @ $150 or just axe it altogether and sale the Pro at $199
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Posted: Apr 7th 2009 12:28PM Bowser Rogozhin said
45% reduction in production costs but Nintendo plan a 11% price hike over here in God's territory. It's disgusting. If only the PS3 wasn't so focused on claiming the Xbox pie I'd jumped ship already. I'm pretty sure this generation will be the last for me, and legions like me; staidness gets rewarded well too handsomely, and consumer floggings are becoming the norm. Last gen's love has disappeared into the either and only filthy avarice remains.
Only the handhelds are redeemable, but with shlock like the DSi flying off the shelf it really makes me rethink my fervent support.
Only the handhelds are redeemable, but with shlock like the DSi flying off the shelf it really makes me rethink my fervent support.
Posted: Apr 7th 2009 12:41PM Bowser Rogozhin said
"How is the best handheld ever, only better,"
Try playing GBA games on your DSi recently? 50% price hike for 50% of the functionality.
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Try playing GBA games on your DSi recently? 50% price hike for 50% of the functionality.
Posted: Apr 7th 2009 12:49PM MarkezJM said
I know the 50% is wholly arbitrary on your part, but how did you come up with that figure? Personally, I've never used the GBA slot once in mine.
How long should they continue to tack on an obsolete format? I know there are lots of people with considerable GBA libraries, but at some point I think it's ok to move beyond tacking on an old format into your new devices.
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How long should they continue to tack on an obsolete format? I know there are lots of people with considerable GBA libraries, but at some point I think it's ok to move beyond tacking on an old format into your new devices.
Posted: Apr 7th 2009 12:53PM (Unverified) said
I never used and don't miss the GBA slot, quite frankly. As soon as Nintendo announces at E3 that your Wii and DSi will be able to swap SD cards I'll be VC-ing all over the place. It's bound to happen, right?
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Posted: Apr 7th 2009 12:38PM (Unverified) said
What if Nintendo decides to release the wii with new colors and a price drop at the same time. I think the world would collapse. Just the sheer amount of money flowing into Nintendo at that time would cause a hole in the space time continuum. Thank you Nintendo for saving us all.
Posted: Apr 7th 2009 12:38PM Cyro 117 said
It should be very cheap to manufacturer a Wii. Doesn't it use like a Nvidia TNT2 card as a video card ? or is it a Voodoo 2 ?
:P
:P
Posted: Apr 7th 2009 12:46PM ilduce620 said
VGChartz pointed this out yesterday, and I pointed it out in this thread where it was first mentioned in the source article:
http://www.joystiq.com/2009/04/06/nintendo-not-concerned-about-declining-japanese-wii-sales/2#comments
Glad it got brought up in a separate thread, though! As I said on the aforementioned thread, this means that Nintendo could:
a). Drop to $150 in the US and still make a ~$12 profit, or...
b). Keep to $250 and bundle in Wii MotionPlus AND WiiSpeak and still make a profit.
My Magic 8-Ball says neither will happen...certainly not in 2009...
http://www.joystiq.com/2009/04/06/nintendo-not-concerned-about-declining-japanese-wii-sales/2#comments
Glad it got brought up in a separate thread, though! As I said on the aforementioned thread, this means that Nintendo could:
a). Drop to $150 in the US and still make a ~$12 profit, or...
b). Keep to $250 and bundle in Wii MotionPlus AND WiiSpeak and still make a profit.
My Magic 8-Ball says neither will happen...certainly not in 2009...
Posted: Apr 7th 2009 2:07PM BreakingPoint0 said
Like someone else mentioned, just the cut of production costs doesn't equal a price drop(especially a $100 one). There are other factors to consider(taxes, people to pay, etc) My bet would be we would see a drop to $200 before anything, or, as you stated, an inclusion of some extra things in the package.
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Posted: Apr 7th 2009 12:55PM Bowser Rogozhin said
GBA has a stronger library of games than the DS. The format is only obsolete if you allow it to be obsolete. For every Markez there are another 200,000 Koopas who enjoy playing Gunstar Super Heroes/[insert favourite game here] on the go.
Posted: Apr 7th 2009 12:57PM Bowser Rogozhin said
That was a reply to myself, which when said aloud sounds quite sad indeed.
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Posted: Apr 7th 2009 1:07PM MarkezJM said
Sure, that was my personal experience that I don't use the GBA slot, I understand that many do. But when does it become OK in your opinion for Nintendo to drop an old format and quit forcing it into new technology? If the GBA is such a huge deal for you, great, keep a GBA around.
Only filthy avarice remains, really? I think sometimes you totally forget that you're actually just on a videogame blog. About videogames. Lighten up.
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Only filthy avarice remains, really? I think sometimes you totally forget that you're actually just on a videogame blog. About videogames. Lighten up.
Posted: Apr 7th 2009 1:09PM Bowser Rogozhin said
It's a 50-50 partnership, Roto. A DS game in slot-1 and a GBA game in slot-2. An equal relationship, like a mixed race couple.
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Posted: Apr 7th 2009 2:58PM SpartacusMagnus said
Dang guys, who cares if he plays GBA games on his DS? There are plenty of people who screamed bloody murder about the 360 when it didn't have 100% BC and many who did the same when Sony pulled BC from the PS3.
And these arguments in a Wii comment section nonetheless, a platform that many have argued has "last gen graphics".
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And these arguments in a Wii comment section nonetheless, a platform that many have argued has "last gen graphics".
Posted: Apr 7th 2009 1:00PM (Unverified) said
Its more likely they'll raise the price, not drop it. They opperate on the costanzian principle of opposite logic. All they need to due is add a piece of plastic or maybe a 75 cent low res camera and they charge 300$ instead. Or actually they could take some photo freeware program (the same stuff they use for the DSi perhaps), bundle it with a .5 res camera, call it "Wii Movies" and charge 90 bucks for it. Add a mario or zelda logo to camera and bump it up to 150$. Easy as pie
Posted: Apr 7th 2009 1:18PM (Unverified) said
apart from the obvious exclusives, a lot of the third party games on the wii also come out on ps2.
Posted: Apr 7th 2009 1:24PM Dante G said
Manufacturing costs don't include all the other costs that take the Wii's to the shelves and to people's homes. Advertising, Payroll, Shipping, PR, etc, etc.
For all we know the manufacturing cost at launch could have been 100 bucks, and a 45% decrease would only be 45 dollars... the thing is... that if you consider how the yen has gotten stronger since 2006, selling their products in foreign countries would mean less profit. In conclusion the only reasonable market for a price drop would be Japan itself.
For all we know the manufacturing cost at launch could have been 100 bucks, and a 45% decrease would only be 45 dollars... the thing is... that if you consider how the yen has gotten stronger since 2006, selling their products in foreign countries would mean less profit. In conclusion the only reasonable market for a price drop would be Japan itself.
Posted: Apr 7th 2009 2:26PM (Unverified) said
Is a price drop going to make anyone purchase another Wii? This is how technology works, it starts off costing a lot to produce then they start manufacturing a lot of it then down comes the price. Only problem with this is that Nintendo is still seeing a high demand. So they won't drop their prices. Sony on the other hand needs to lower the price 399 used to be a good price for a blu ray player and you got a video game system with it. Now you can get a blu ray player for 149 and a Wii for 250 so that is 399. Sony needs a 100 dollar price drop to make it attractive again. I would really think about a PS3 for 299 but 399 is just too much.
Posted: Apr 7th 2009 2:58PM Chris DPSN AggieCEO XBLThe Aggi said
I'll buy another now if they release it in black. but if they do that AND drop the price I might buy 2...lol
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Posted: Apr 7th 2009 3:11PM (Unverified) said
I need Wii 2, and it be backward compatible with all the current Wii accesories. Since I have shelled out all the money for them.
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