Words Of Wisdom said: homerman100 said: ^It would lower production costs. More profit per Wii unit or maintaining their profit margins at a lower retail price. |
Consider this... The overhead for a redesign would include R&D for the new chipset, testing, Q&A, risk analysis, multiple levels of support for new and old, redesign of packaging to reflect altered contents, and retooling their production lines for a new SKU. The cost savings would have to be very significant to warrant a new SKU at this stage in order to cover the overhead. Considering that Nintendo is already making bags and bags of money on their current one without changing anything, it would be foolish to change anything at this point. Why do I get the feeling that most people saying "cost-reduction" don't know what they're talking about? -_- |
We are talking about a relatively simple die-shrink, something which would not require a new chipset, Q&A, differing support for new and old designs, or a redesign of packaging. Simply put, the CPU is smaller, so the yield per wafer is greater. IBM, who manufactures their CPU, is already moving their production facilities to 45nm fabrication, so it wouldn't be a expensive transition.
The cost savings would not have to be "very significant" whatsoever. Given that most people see the Wii selling 100 million consoles, give or take, that is 75 million consoles on which a small price savings would amount to a serious profit or competitive advantage.
As I said before, this would allow Nintendo to better compete against the other consoles as they have price reductions. Either Nintendo can sell the Wii at $250 and make more profit per console, or sell the Wii at, say, $199 and maintain their profit margins.