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I think they will cut after may, in june or july, because summer and winter is the most profitable/system seller seasons on europe at least, and Wii will be outsold by at least one of the consoles if not the both PS3 and 360 now and forward.

The next system is most likely. Nintendo didn't overprice the Wii in the first place (despite what the haters and cheapskates keep insisting), the other guys went with systems that were flat out too expensive even at a loss, and had to keep cutting to stay competative. Nintendo just needs games to stay competative.

If Wii2 is announced this year which I think is 90% for sure, then their will be no Wiidesign. The Wii as is is profitable and they can't really make it any smaller. Adding HD is out of the question and Nintendo has said several times that the Wii doesn't need more memory. The WiiHD or redesign is something Mr.Pachter came up with on his own.

Prior to E3 2006 EAGames and Sega both leaked prices for Wii. Both companies alledged that the console cost 70-100$ to manufacture. Now keep in mind the GameCube was profitable at 100USD, the Wii's hardware other then the Wiimote would not have cost all that much more then a GameCube.I also saw on G4TechTV shortly after Wii was released that a group of hardware specialists had taken the Wii apart and apraised it around 100USD.

Nintendo could have sold the Wii at 150$ I'm pretty sure of it. They would have also turned a profit. So was Nintendo being greedy by over pricing the device? No, they weren't being greedy they were not expecting the Wii to be as popular as it was. Nintendo GameCube while profitable sold only what 24-million units and for Nintendo to maintain high profit margins and allow for future price cuts they had to set the price higher. Nintendo also knew their competition would be pricing their systems fairly more expensive.

If Nintendo had priced Wii at 150$ would they have sold anymore units then they did at 250$? No they wouldn't, Nintendo did not expect to see huge sales. Look at what Iwata was saying at TGS 2005 he said that Nintendo was prepared to support the console with first party titles alone if third parties did not jump on board. Nintendo was so pessimistic that they thought they might be the only ones supporting their hardware.

The fact that the Wii sold so much was not predicted by Nintendo. I believe Nintendo expected GameCube like sales and that is why they priced the hardware that high. The price is reasonable when compared to past Nintendo consoles as well.

Now back to the topic. I think with the new console set to be announced this year. Wii will take a 25-50$ price cut August or September. Alongside a strong line-up of Nintendo titles. I expect Nintendo to announce 3-4 new games for Wii at E3. Nintendo will hope that the price cut and new software will be enough to bring the Wii's sales back up at least one last winter. Though I'm not sure that will be good enough to beat the 360 over all in 2010.

Um, that leak was proven off by at least $40 by a later iSupply report, that did not even include the controllers, which would have raised the manufacturing price even more (those accelerometers were still costly back then, especially since there was one on each controller). So you're "pretty sure" of something that is objectively false.

So the leak said 70-100$ as I recall and you say it was off by 40$ when infact it was off 58$ that would mean the Wii cost 158$ (not 40$ more) to manufacture. Theirs no way the controller cost another 100$. No matter which way you slice it Nintendo most definatly over charged to turn a profit.

I'm not getting upset at Nintendo or argueing they should have charged less. Because honestly given their position it was a very reasonable decision. Keep in mind Isuppli also said the GBA:Micro only cost 44$ to make and Nintendo sold the device for a hundred.

Also ISuppli's numbers are based on regular cost. How much it would cost you or me to build. Factor in Nintendo's massive quantities and special deals these prices are probably alot smaller. So EA and Sega's estimate of 75$-100$ was probably pretty close to reality. Keep in mind Nintendo's Reggie stated the GameCube was still profitable at 99$ the Wii's hardware (Without controller) couldn't have been to much more then the GCN was. Thats just basic logic.

I'd say Nintendo probably spent no more then 150$ on each Wii, infact as I said I'm sure Nintendo would have broken even or even turned a profit at 150$. Today the cost of the Wii is probably under a hundred bucks and it still sells for 200$

What? I did NOT claim the controller add that much. In case you forgot, the Wii in most regions also came with a game (let's not get into a "tech demo" argument, as sales in Japan showed people like the game on its own). Plus there was the R&D costs for the system that had to be made up.

So Nintendo did not overcharge. They merely charged just enough to make sure they made money off the system.

Your right Nintendo spent around 105-mill on R&D for the Wii each year. But since then Nintendo has spent over 350-mill on R&D.

As I said their were reasons for the hardware being priced so high. I named a few and R&D is another. I was simply saying their priced it to turn a profit. Microsoft who lost money on every unit sold still ended up being profitable only two years into its life span (Including R&D), are you saying Nintendo which sold for a profit needed to price the console at 250$ to break even?

Of course Nintendo was making a crap load on each unit, they didn't need to sell many units to make up the R&D costs etc...etc...

Again I am not saying Nintendo did anything wrong. Simply saying they turned a healthy profit off each unit sold. Which Reggie himself has said. Whether the console cost 70-150$ even if it cost 200$ Nintendo still over priced it to turn a profit.

P.S- Any smart company is going to price something higher then it costs them to make so that they turn a profit.

If they cut the price by $50 they'll cut their hardware margins by at least 50% and they'd have to sell at least twice as many units to make the same profit as before. I don't really see them cutting the price as theres no real objective reason to maximise market share at this juncture unless they have an oversupply of Wii's which they need to clear.