Iwata said they wanted to abandon the usual sales strategy of lowering console prices over time in a console cycle, one of the reasons given was that if they lower prices early buyers would feel ripped off.

Do executives at Nintendo really think we're that stupid?

Technology prices go down over time, therefore production costs also go down, and that's one reason console prices can be cut. I'm pretty sure Wii's production costs now are much lower than the ones at launch, so who's really getting ripped off?? People that are buying Wiis right now.

I'm not saying that Nintendo should cut the price of the Wii, it's selling so well it would be a horrendous bussniess decision.

But why does Iwata have to say that they wanted to abandon price cuts and that early buyers would feel ripped?? I feel that he really thinks we're really stupid and that we don't really understand simple economy!

If sales are good there's no need to lower prices, but if sales are bad it would be wise to do it (if you can still have some profit from sales) and that's it!

That's the only reason prices haven't been lowered, and Mr. Iwata will have to eat his words when sales of the Wii are not as good as they are right now and they'll have to do a price cut to keep selling well (wich is not in the foreseeable future)

If you make large price reductions early and often it does annoy some of your customers and it will discourage people from buying your next console early on ...

Imagine the people who bought a $600 PS3 with little need or use for backwards compatibility, and then 6 months later (before they have played any 'Great' games) an equally desireable PS3 console is on the market for $400. In the next generation, if Sony sells another console for $600 (or more) do you think this customer is going to be as likely to buy a console early on?

I (personally) believe that the proper timing and size for price reductions for the Wii at this point in time would $50 after 2 years, $50 18 months after that and then $50 18 months after that.

Yes, Nintendo thinks you're that stupid.

It's all a conspiracy made by Obama (who secretly owns Nintendo) to make you vote for him. Therefore, Nintendo has made this distraction to take all focus on that, so that their master plan can suceed.

So yes, Nintendo thinks you're stupid enough to make a big deal out of this.

Oyv and out.

I felt ripped when after a couple of weeks of buying Zak and Wiki at 29.99, Capcom lower the price to 19.99 so yes, I would feel a little bit ripped off with a $250 console. About being ripped off, Nintendo was making a $50 profit at the beginning so people were "being ripped off" then, yet they bought it anyways. It's how much you feel the Wii is valued at, not because of the price of the individual components.

@RolStoppanle

Well I'm not saying Nintendo should lower the Wii console price, it totally shouldn't, but the reasons Iwata mentioned are not the real reasons thay haven't lowered it. It's just sales are great right now.

@HappySqurriel

You have a valid point, but Sony had to do it because they just weren't selling systems. Nintendo is on the opposite side. IMO there isn't a proper timing for price cuts, you just have to study the market and make the necessary decissions for keeping sales good. Price cuts aren't the only right move, releasing good software is the best strategy, but there will always be people that won't be able to afford current console prices...

It best to buy games regardless of system, when they are pre-owned for a bargain or at game sales. The price of the console whether its Wii,PS3 or 360 is fairly steep. Consoles drop in price as they get older, more games come out and more bargains are available. Wise people stay a generation behind and get all the previous generation games and bargain prices.

*Nods with RolStoppable*

If a new game is added or something else of value, then the price doesn't have to drop. Of course, it would need to be something so universally wanted that it would still keep up sales.

Eventually, of course the price will have to drop.

As with all corporate speak, it should be taken with a grain of salt. And yes, some of the things companies say can boggle the mind.

However, I will reserve judgment on this one since Nintendo seems to be much more true to its word than MS and Sony (at least in this console generation).

Is a nice way to say: "We are making tons of cash, so there is no need to cut the price on the first 18 months"...

Maybe Sony created an unrealistic expectation about cutting cost (There is a lot of comments regarding this issues,  some hope and rumors of another price cut)... and that affects your point of view of Ninty...

Make and sell 20million consoles at $250 cost price $140
Make and sell 20million consoles at $200 cost price $140

Profit at $250 = 2.2billion
Profit at $200 = 1.2billion

Therefore the price stays up.

In strict economic terms the price of the Wii should go up because demand outstrips supply. We have seen on places like ebay Wiis selling for $500 or more.