Nintendo warns software trade prices may also rise

[famousringo]

sparkit34 said:
So when are they going to drop software prices in Euros and Australian dollars, to reflect purchasing power too. We have been paying on average 50 percent more for games than in the US for about 2 years now, yet i did not hear Nintendo discussing about bringing prices down.

The US dollar from 2002 to 2008 has halved in comparison to the Euro and Yen, but somehow, the cheapest games are still in the US.

I won't be surprised if Nintendo is testing the waters to see if they can rise prices in the States. They have wanted to for year, and may now have an excuse, so they are testing this out in the mini-USA. They are far ahead in the UK, that they can suffer a drop in sales, whilst testing elasticity of demand for the Wii in an economy very similar to the US economy.

 

It's true, the US may be next.

The USD has lost 25% against the yen in the past two years. Since Nintendo seems to be balancing the Wii's UK price around a 30% drop in their earnings (40% drop in currency value, 10% increase in price), the greenback wouldn't have to drop much more against the yen to trigger a price hike from Nintendo.