Reggie: Price Cuts are baaaad. Software is goooood

[Joelcool7]

LordTheNightKnight said:
Since the Wii is already at a sweet spot for pricing, a cut will be when the price is no longer necessary to stay that high (as in the profit margin is so high, even a price cut will still make loads).

And it makes sense that Nintendo is courting developers. That's kind of what Sony did with the PS1.

According to EAGames and Sega back when the Wii was first released. Nintendo would make a profit by selling the console as low as 170$. This means it costs less then 170USD to manufacture a Wii. So that means Nintendo is making about 100$ in pure profits off of every unit, and since its launch in 2006 hardware manufacturing costs will have gotten even cheaper. I wouldn't be suprised if Nintendo was making 150$ off of every console sold.

With Microsoft saying they now turn a profit off of their hardware at 299.99$ They poise the very first threat to Nintendo but Nintendo could see its sales halve and it would probubly still be making more profit per console then Microsoft. Let alone poor Sony who still doesn't turn a profit off of its hardware.

So when will Nintendo cut the Wii's price. Probubly once the next generation begins. I suspect the Wii will drop to 99.99$ by 2013. With the first price cut to 199.99$ fall 2011. But I suspect that Nintendo will maintain the 250/279.99$ price tag till the next generation of hardware launches!