When Will Wii be $150

[Squilliam]

Khuutra said:

Squilliam said:

If they cut the price by $50 they'll cut their hardware margins by at least 50% and they'd have to sell at least twice as many units to make the same profit as before. I don't really see them cutting the price as theres no real objective reason to maximise market share at this juncture unless they have an oversupply of Wii's which they need to clear.

But Squilliam, haven't you heard that marketshare matters more than mad profits?

Yep it matters heaps. Until the shareholders ask Nintendo to justify what return they have recieved for their investment that is!

Seriously now margins and revenue fall substantially whenever any console maker cuts the price, you have to be pretty desperate to make a steep cut (Sony) or have other very good reasons to do so. Thats the reason why Nintendo and Microsoft both have hardly cut the price, instead they added value.