Posted March 11, 2009 Hardly. So far as components go, after certain point, you really can't reduce unit price no matter how old the component is. I would guess that Nintendo gets 20 pounds per console, at tops, after you calculate research, marketing, and logistics into price. I do believe, although don't quote me, that they're making a hell of a lot more than that per console. Sure, there's only so much they can get the cost down but these things are making a bugger load of money for Ninty. Share this post Link to post Share on other sites
Posted March 11, 2009 I do believe, although don't quote me, that they're making a hell of a lot more than that per console. If they would, their financial results would be much higher. Share this post Link to post Share on other sites
Posted March 11, 2009 How much did Nintendo charge retailers per Wii unit before the increase? I believe profit margins are minimal for most retailers as it is, so a nationwide retail price rise will be imminent. Share this post Link to post Share on other sites
Posted March 11, 2009 Only recently did I notice how absurdly CHEAP games and consoles are in the UK. When the pound reaches parity with the Euro, we'll be effectively paying more 70£ than you guys for a console. Many games are 30£ which equals approximately to 30€, the average price here is 50€. http://www.game.uk Why aren't you using this site yet? I've been using it a lot, is very useful, and its fucking cheaper when compared with what we get at Portugal. Share this post Link to post Share on other sites
Posted March 11, 2009 http://www.game.uk Why aren't you using this site yet? I've been using it a lot, is very useful, and its fucking cheaper when compared with what we get at Portugal. But I am! That's why I'm saying it. Share this post Link to post Share on other sites
Posted March 11, 2009 Bull, its to off set the ridiculous of the DSi, not that I care because I already have my stupid wii, but I suppose this puts the 360 as an even more viable option for some now. Share this post Link to post Share on other sites
Posted March 11, 2009 How much did Nintendo charge retailers per Wii unit before the increase? I believe profit margins are minimal for most retailers as it is, so a nationwide retail price rise will be imminent. Very true, and this way Nintendo will make it look like they're not the bad guys and all the retailers will be the ones getting hit by the majority of the contents of the almighty shit cannon that the public will no doubt have in store for them. Share this post Link to post Share on other sites
Posted March 11, 2009 Like every other private company in the world Nintendo's goal is to make as much money as possible. Simple as that. Share this post Link to post Share on other sites
Posted March 11, 2009 Not to mention that lot of companies are hiking trade prices up in UK. Pound has really gone down to shitter, and it will get worse. Share this post Link to post Share on other sites
Posted March 11, 2009 Sony recently increased all their electronic prices (except PS3) with 10%. Share this post Link to post Share on other sites
Posted March 11, 2009 It's quite difficult to understand there still being high demand for the Wii. I'd have thought everyone who thought it was worth £180 would have bought one by now. Share this post Link to post Share on other sites
Posted March 12, 2009 Just been seeing what info I can find online regards pricing (not much so far) and having a play with some numbers. All I've found is the article relating to the retail mark ups in America when the Wii was first released in late '06 and a rough guide to component cost from the same period. That first story said that retailers bought the machine for $237.50 and then sold it on at $250.00. Just before I go on, I know the machines are manufactured in Japan but due to it's nature, when I originally did these numbers, I assumed a perfect market for world currencies though having gone back and checked by converting them to Yen it still adds up. At the time, the £/$ exchange was quite favourable to the pound, giving a figure of £125approx but we also have factor VAT on top of the retail margin to bring it up to the magic £180 so it has to be £153 after the retailers have accounted for their slice. I'd imagine distribution to our small island would also be more costly and so it's easy to see how margins would have been just as tight for UK retailers. I know the machines are manufactured in Japan but due to it's nature, when I originally did these numbers, I assumed a perfect market for world currencies though having gone back and checked by converting them back through to Yen it still adds up. The story concerning manufacturing cost gave a figure of US$158.30 for just the Wii itself (so that doesn't include the Wiimote, Nunchuk, Senser Bar, Packaging) and gave a total figure of $195.99 (which I assume is the prime cost for the retail box). I doubt that factors in Nintendo's marketing costs or the recouping of R&D expenditure. This equates to £105 in real money - well it did at the time. I've read stories that give varying levels of profit per sale of each Wii and just came across this on Wiki - "On September 17, 2007, the Financial Times reported that this direct profit per Wii sold may vary from $13 in Japan to $49 in the United States and $79 in Europe.[63] On December 2, 2008, Forbes reported that Nintendo makes a $6 operating profit per Wii unit sold" So Forbes calculation must be based on an absorption costing method to give operating profit per Wii (and also the assumption that Nintendo's targets and sales fall in line) and therefore the other figures could be also be correct (the large variance makes me question the number for Europe though - the japan number may be low, but don't forget it doesn't come with Wii Sports). But that $50 margin in the US would roughly tally with the article concerning the manufacturing cost, so it doesn't seem entirely out of place. So I figure Nintendo's profit at the time was between on a UK Wii has to be somewhere between that figure of £125 and £153 and given the retailers want a piece of the pie, it doesn't leave that much. Now there is no way Nintendo's manufacturing cost haven't come down a little since that point and I doubt that the retailers have seen any benefit from this, but the pound has fallen through the floor. Back in November 06 for every pound Nintendo made in selling a wii, it generated ¥223 but this month it was just ¥134 - that's a 40 percent drop. They still make a gross profit on the sale of the unit, but they'll be harder pushed to cover other costs with that. It just depends whether the reduced production cost offsets the loss on the exchange. Of course, it all depends how much faith you want to put in both those numbers I found and my own workings. I tried looking at some distributions sites for guideline prices, but they either don't list them or they just give you the RRP until you sign in. Not that I'm knowledgeable on such matters... Share this post Link to post Share on other sites
Posted March 12, 2009 I would have thought that Nintendo was making around £80+ on each console by now... Nintendo are constantly increasing the production so that you'll be able to buy a Wii in a game store (a couple of weeks back I was in a game store, when a woman came in and asked if they had a Wii, and guess what: the answer was "no"), and such investments cost money. Share this post Link to post Share on other sites
Posted March 12, 2009 It's quite difficult to understand there still being high demand for the Wii. I'd have thought everyone who thought it was worth £180 would have bought one by now. http://www.joystiq.com/2009/03/10/pachter-nintendo-is-like-mcdonalds/ Share this post Link to post Share on other sites
Posted March 14, 2009 http://www.joystiq.com/2009/03/10/pachter-nintendo-is-like-mcdonalds/ Why did you post that bollox for? Nobody gives a shit about what some Sony anal licker thinks. He is a Sony fanboy incase you didn't know. Maybe that's the reason why you support his opinion. Thinking about it, theres quite a lot of retarded articles on the Wii lately. Share this post Link to post Share on other sites
Posted March 14, 2009 Chances are everyone here has a Wii already, so I don't see what you're whining about. Plus, think of it this way, if interest in the console diminishes because of the higher cost, what's Nintendo's one foolproof method in regaining attention? It's going to happen in Japan soon, that's for sure. Share this post Link to post Share on other sites
Posted March 14, 2009 Wouldnt be surprised with this happening with us getting shafted with the DSi price and with it only being £30 off of a Wii. Get a DSi and game and it's the same price as a Wii with Wii Sports. Share this post Link to post Share on other sites
Posted March 14, 2009 Wouldnt be surprised with this happening with us getting shafted with the DSi price and with it only being £30 off of a Wii. Get a DSi and game and it's the same price as a Wii with Wii Sports. True, why shaft us for a newer model DSi/game for the price of a Wii with Sports As Darkspine said, most of us already have a Wii like myself so this price increase which could affect consumers doesn't affect me. But, we may get a hike on the games price so that could affect me/us in a way as well. Share this post Link to post Share on other sites
Posted March 14, 2009 (edited) Play.com were just recently selling 20GB Xbox 360 Premiums for £129.99. I'm 100% not getting a Wii if there is a price rise or even if the console stays at the same price. It's like buying a pentium 1 PC with 16MB of RAM today for £500. You would have to be mentally ill to pay £199 for a GameCubei (haha, suits it very nicely!) Edited March 14, 2009 by Pyxis Share this post Link to post Share on other sites
