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Forums - Nintendo - Nintedo to cut -scratch that- RAISE Wii Price!

Pristine20 on 13 March 2009
famousringo said:
Pristine20 said:
famousringo said:

So you think Nintendo should just use profits from other regions to subsidize losses in the UK? I don't think that strategy will pay off in the long run.

You misunderstand. Ninty is not taking losses fom the UK. The problem here is that their profits there have greatly reduced. They have high profit margins.

 

Sorry to hammer away at this point, but it drives me crazy. Do you really think that Nintendo was making a 50% profit margin on UK Wii sales? Because that's what would be required to maintain profitability when revenues drop 40%.

And I swear you would not see me take a swing at Sony if they were to raise prices, even if they did it outside the UK where the currency shift isn't so drastic. A company deserves to make a healthy profit, and I don't think they're doing anybody any favours by running their business into the ground.

It's possible. Since M$ is not taking losses from selling 360s at $199, I wont be surprised if the wii cost less than $ 125 to manufacture.  Even if slight losses were to incur on the console, note that they're also raising prices on first party software which is nothing but profit especially a game like wii fit.

You're wrong. I'd take a swing at sony for raising prices because they'd only effectively make their sales worse than they already are. I don't think they should drop prices either but raising prices is just not a good idea in my book especially in an industry like the one we're discussing. It just shows that nintendo is getting complacent and is looking to walk in sony's shoes in the near future..

 



"Dr. Tenma, according to you, lives are equal. That's why I live today. But you must have realised it by now...the only thing people are equal in is death"---Johann Liebert (MONSTER)

"WAR is a racket. It always has been.

It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives"---Maj. Gen. Smedley Butler

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SuperDave on 13 March 2009

Nintendo is probably also of the opinion that they can get away with this. They're the clear market leader, whereas Sony who's in a more precarious position might not feel that they can afford to piss consumers off with a price raise.

It's really a balancing act, raising prices vs suffering potential loss of sales, to determine which makes you more profitable.



The only teeth strong enough to eat other teeth.

arsenicazure on 13 March 2009

from a share holder point of view.. brilliant.. from a consumer point of view.. pants.. you now how much bad press this can generate especially during the recession.. or day i say it.. depression.



Doubt is not a pleasant condition, but certainty is absurd.

owner of : atari 2600, commodore 64, NES,gameboy,atari lynx, genesis, saturn,neogeo,DC,PS2,GC,X360, Wii

5 THINGS I'd like to see before i knock out:

a. a AAA 3D sonic title

b. a nintendo developed game that has a "M rating"

c. redesgined PS controller

d. SEGA back in the console business

e. M$ out of the OS business

Naum on 13 March 2009

Well the price for the Wii in the UK is lower then the rest of Europe, no point in denying it now is there.



If it isn't turnbased it isn't worth playing   (mostly)

And shepherds we shall be,

For Thee, my Lord, for Thee. Power hath descended forth from Thy hand, That our feet may swiftly carry out Thy command. So we shall flow a river forth to Thee And teeming with souls shall it ever be. In Nomine Patris, et Filii, et Spiritūs Sancti. -----The Boondock Saints

mike_intellivision on 13 March 2009
Pristine20 said:
SuperDave said:
It sucks, but Nintendo shouldn't have to eat economic factors out of their control. About a week after I bought a computer in October the price of the parts I bought went up about $250 total. Console's shouldn't be exempt from the situation.

The unfortunate thing here is that Microsoft and Sony have such deep pockets that they seem to be willing to eat losses in their game divisions whereas Nintendo can't exactly fall back on it's other sources of income since the gaming industry is all it has. It ends up making Nintendo look bad for trying to make a buck.

 

Don't know about that part. Whats sony falling back on nowadays? Yet..they haven't bumped the price. It really seems like greed on ninty's side honestly. It's not like they're taking a loss, it that the profits aren't as high as they used to be yet everyone ignores this little fact LMAO.

 

Sony has bumped the price on other electronics (as was shown here) and it has not had that long-predicted price drop.

Also, two other points. First, Nintendo is all about video games. That is its core and pretty much its only business.  Second, the Wii is the market leader with about a 50% market share in the UK. So it is a better position to take care of its profits -- and had more reason to prevent losses --  than the other console companies.

 

http://vgchartz.com/hwlaunch.php?cons1=Wii&reg1=UK&cons2=PS3&reg2=UK&cons3=X360&reg3=UK&weeks=180

 

Mike from Morgantown



      


I am Mario.


I like to jump around, and would lead a fairly serene and aimless existence if it weren't for my friends always getting into trouble. I love to help out, even when it puts me at risk. I seem to make friends with people who just can't stay out of trouble.

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arsenicazure on 13 March 2009

losses? doesnt nintendo generate billions of dollars in profit quarter after quarter.. year after year for the last decade? isnt their market valuation actually "more" than sony's... If anything nintendo should grow a pair n bear it out... stop giving urs executives bonuses and keep the price same.. im having trouble affording xbox live as it is.. :)



Doubt is not a pleasant condition, but certainty is absurd.

owner of : atari 2600, commodore 64, NES,gameboy,atari lynx, genesis, saturn,neogeo,DC,PS2,GC,X360, Wii

5 THINGS I'd like to see before i knock out:

a. a AAA 3D sonic title

b. a nintendo developed game that has a "M rating"

c. redesgined PS controller

d. SEGA back in the console business

e. M$ out of the OS business

Pristine20 on 13 March 2009
mike_intellivision said:
Pristine20 said:
SuperDave said:
It sucks, but Nintendo shouldn't have to eat economic factors out of their control. About a week after I bought a computer in October the price of the parts I bought went up about $250 total. Console's shouldn't be exempt from the situation.

The unfortunate thing here is that Microsoft and Sony have such deep pockets that they seem to be willing to eat losses in their game divisions whereas Nintendo can't exactly fall back on it's other sources of income since the gaming industry is all it has. It ends up making Nintendo look bad for trying to make a buck.

 

Don't know about that part. Whats sony falling back on nowadays? Yet..they haven't bumped the price. It really seems like greed on ninty's side honestly. It's not like they're taking a loss, it that the profits aren't as high as they used to be yet everyone ignores this little fact LMAO.

 

Sony has bumped the price on other electronics (as was shown here) and it has not had that long-predicted price drop.

Also, two other points. First, Nintendo is all about video games. That is its core and pretty much its only business.  Second, the Wii is the market leader with about a 50% market share in the UK. So it is a better position to take care of its profits -- and had more reason to prevent losses --  than the other console companies.

 

http://vgchartz.com/hwlaunch.php?cons1=Wii&reg1=UK&cons2=PS3&reg2=UK&cons3=X360&reg3=UK&weeks=180

 

Mike from Morgantown

I don't get this. Won't that be the reason why they don't need to raise the price?

 



"Dr. Tenma, according to you, lives are equal. That's why I live today. But you must have realised it by now...the only thing people are equal in is death"---Johann Liebert (MONSTER)

"WAR is a racket. It always has been.

It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives"---Maj. Gen. Smedley Butler

Magnific0 on 13 March 2009

I remember when the higher-ups at Nintendo said they could've/should've priced the Wii $299.99 and got away with it. Don't have the link for that now, but it's not impossible to imagine, of course they could've priced the Wii $300 and people would gladly pay for it.



Dgc1808 on 13 March 2009

Nintendo??? Not SONY??

Wow... tough times indeed.....

I guess SONY increasing the price of the PS3 might not happen, but I do expect them to increase the price of some other products like they're already doing with the TV's.



4 ≈ One

Jo21 on 13 March 2009

i am sure no one expected a price cut with this economy but raising the prices?! oh hell >_