When the wii stops selling out....

[Just_Ben]

stof said:

rasone77 said:
When the other two consoles drop their prices low enough to compete with Nintendo, then we'll see a price cut. It's just good business.

I have to disagree with you there. Nintendo won't base their price on the competition, they'll base their price on their own console, and as long as it keeps selling at high levels there will be no need for a price cut. We will see new colours and some different game bundle options, but I imagine that there won't be a price cut for a long time.

 

 I disagree there. They cut the price if they can make more money with a lower price. For that they need to produce (or can produce) at a much higher level than they can sell. That doesn't mean the demand needs to drop. 

 

Think of that this way (Following is a fantasy world on the numbers but not on the conclusions):

 

Lets say they make at the moment 100$ a consol and sell 1 Million per month:

-> 100 Million profit.

Lets say they could sell 2.1 Million per month with 50$ profit:

-> 105 Million profit.

As a company you will do the seconds one. Because you would make more profit. So demand doesn't need to drop nor has it to be low for a company to do a price cut. So nintendo cuts the price (as all others companys) if they can make more money with a lower price.

I just doubt that will happen soon. I'll say summer 08 or later.