wait, i thought the more of something that you make, the less they cost each.

They were making more for a while but the Yen exchange rate killed it and it's back down to ~$6 per unit when averaged across all markets.

I said "mostly" because they also slightly decreased Wii SW/HW shipment forecasts. However this may have been due to production difficulties rather than demand (which could explain NPD's weirdness of December < November).

If it were to happen, it would start with Japan (where the Wii is already cheapest anyway), and then proceed across to Europe, and finally land in North America, since they still can't quite get the shortages out of the way here

@vonboy: Theoretically yes, but ramping up production increases costs until they've been offset by the number of sold units. This is especially apparent with the consoles that all are manufactured by 3rd party manufacturers and even if they were internally manufactured, the components would still be manufactured by others.
For example, if you invest one million into the production ramp, you need to offset the cost in the price of the product, until the investment is paid, after which the cost goes down.

What are you talking about?

Xb360 is cheaper than wii. everybody is affected for the economy. what helped nintendo was its inovation.

@jhonip: If Nintendo can break barriers between gamers and non-gamers, the increased amount of free time helps Nintendo to increase Wii sales.
360 doesn't really expand beyond the current audience and if its sold to people who spend a lot of money to gaming already, the people may need to cut their gaming expenses.

The thing is, that the downturn always hits first the segment that spend the most money into the market (it's a different matter whether 360 has hit the kind of market, but judging by the kind of games that sell on 360, it appears so). Also notice that we are talking about software as well as hardware.

Just by looking over Nintendo's quarter report, one can understand what's going on. How could this guy just get it so wrong?

You can't spell analyst without anal.

I hope so, a lot of friends of mine would buy one if it was cheaper.