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TWRoO on 25 September 2009
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68soul said:
TWRoO said:

Not sure about the exchange rate for Euros, but for the UK even with the price increase Nintendo still get more money from US Wiis.

Ah... actually they may not, I just checked (taking off ~18% for VAT) Nintendo get's about 24k Yen from the UK, (though it was less before they increased the price) but only 22.6k Yen from a US Wii and about 27k Yen from Eurozone Wiis.

This will be missing a lot of factors I suppose, like first of all Nintendo don't sell them to retailers at full price, but that should be roughly similar in all regions so it doesn't matter... however it will cost them more in shipping and such for Europe. Though I doubt that amounts to over 4k Yen for the European difference, with British taxes it may bring Nintendos UK profits below USA ones.

 

The british pound is actually in a very specific situation: two years from now, its value was nearly 1.5 euros, now it's nearly equal to 1.1 euro, as the euro zone protected us more from the crisis than the "independant" pound... so a Wii for 200 pounds was like 300 euros, when now, it's only 220 euros... that's why they even thought of a price raise in the UK a few months ago...

But anyway, 250 euros is like 350-370 dollars: the US let their money fall, while the euro stayed very strong... so the profits on all the non-european products, especially the ones made in China, are really really huge these days...

Don't know where i could find the information again, but someone from Nintendo stated in an interview that the profit margins made in the euro zone were a little bit more more than two times the ones made in US (for the same product, of course)...

 

Yes but that 250 Euros includes tax, the US price does not. but othewise yes the $ has fallen a lot.... it used to be roughly equal to the Euro a few years back

When everything went wrong, the USD fell so that you could get 2 in every GBP... that was last year I think. Now the GBP:USD ratio is back where it was years ago, because both are weak.

Can you remember when (roughly) that bit of info was from? because I might be able to work out what Nintendo spends per console.
Based on the current rate it means Nintendo spends just under $200 per console (includes production/shipping/packing/storage etc)