Stefan.De.Machtige said:
steven787 said:
The price cut has little to do with competition. It has to do with Nintendo upping the production of the Wii and now it has to continue to sell numbers close to those that in order to fulfill contract obligations to suppliers and contracted deals with unions (if Unions work similar to the U.S. in this way, I don't really know)...
These aren't exact factors, but Nintendo had to arrange for supplies, shipping, and labor for all those Wii consoles they were selling. The cost of paying the minimums v. lowering the price to up sales a little and meet the minimums, probably has more to do with it.
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Very good point. This might be the biggest reason to cut the wii price. Meeting contracts with suppliers is very important for any company.
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I know, it's fun to read all the speculation about competition though. Though, I think somewhere, someone who works for Nintendo does care about being >50% of the current generation install base.