Thursday, May 1, 2008

The Wii Price Cut


"It is looking more and more like Nintendo may have no option to make the Wii cheaper at retail, despite what Satoru Iwata says. Here’s why:

  • It has been at the same price for a long time now, during which it has become a lot cheaper to make. Especially with the volumes they are churning out. And they were making a profit in every unit from the beginning. So there is plenty of room to drop the price.

  • They are ramping up..."
Full article source

What I want to know is, how is demand? This is a simple supply and demand issue. If the United States markets are still willing to pay this price and still almost sell out, then don't drop the price. According to the article, international sales are not as good so maybe drop the prices overseas.

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