Why the Wii still costs $250

by on Apr.13, 2009, under thoughts

I read an article recently talking about the manufacturing price of the Wii. This article pointed out that the manufacturing price of the wii had gone down by about 45% since the time the Wii came out. Yet, the Wii still costs $250 for consumers.

It’s simple really: people are still willing to pay $250 for a Wii. As long as Nintendo can sell Wiis for $250, and make a huge profit while doing so, they might as well. While Wiis are becoming easier and easier to find, they’re still flying off the shelf.

It’s worth noting here that Nintendo has, from day one, been making a profit from every Wii sold. So, it stands to reason that they’re now making a HUGE profit on every Wii sold. Taking away 45% from $250 means that the Wii should now cost about $137.

But there’s something else. A small note that’s often forgotten. Nintendo will have to drop the price of the Wii eventually, so they can boost sales again. When this happens, Nintendo will be able to drop the price by $100 – $150! This will be an insane price drop, and ignite intrest in the Wii once more, making them hard to find. This price drop could put the Wii anywhere between $100 and $150, making it, once again, the cheapest current-gen video game system.

Nintendo has, yet again, found a way to print money. Make a system that is the cheapest current-gen system when it launches, with the fun gimmick of having motion-sensitive controls. Then, let the manufacturing price drop while you keep your price the same, and every other system lowers the price. Wait until interest in your console dies down, and… drop the price, and make it the cheapest current-gen system again. Nintendo knows what’s going on.

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