NJ5 said:
Username2324 said:
puffy said:
No faith in the UK economy? Well it's probably past the point where Nintendo wanted to do something about it. Besides Nintendo are a very fiscally conservative company and will want to make its projections for its' share holders.
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5 Trillion in profits wasn't enough? They have to make 5.5 trillion?
I mean really, they are making tons of money still, and taking one for the team really wouldnt have been that bad. $80 (US) pure profit on every console since launch, I can only imagine how much it has gone up since then even with the economy, it's a cheap piece of technology.
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So for you, at what point is it acceptable to raise prices? How much do profits have to drop?
In the business world there's no such thing as "enough" profits, it depends on the company's strategy. If Nintendo isn't happy with their performance in UK and think they can do better by raising prices, they're entitled to do it.
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When the system is on a verge of losing money per console sold. Everyone knows Nintendo is making money off every Wii, and just because they're making a few yen less in one market doesn't mean they need to raise the price. They are still making bucket loads of money of the Wii in the UK. It's companies like Nintendo that are just making the whole situation worse.
They fear their profits are going to slim so they raise the price, but by raising the price they reduce how many products they sell, causing them to raise the price further, which just hurts the economy of the area they are selling in, people will have to fork out more cash for the same product they could have bought cheap a couple years ago.
Now Sony, they announced that they were beginning to lose money on their TV lines, and that is what caused them to raise the price, that is respectable because they are trying to keep themselves above water, not just make as much money as possible.
Prices go up > sales go down> people suffer
