Wii Production Costs Down 45%

Wii Production Costs Down 45%

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It's 45 percent cheaper for Nintendo to manufacture the Wii than it was when the console launched, but just because Nintendo can doesn't mean it will drop the system's price.

The Wii's never been a particularly expensive product to manufacture, especially compared to something like the Cell-processor powered PS3. As any console warrior will tell you, "it's just two GameCubes taped together," and while they'll be silly for saying something like that, they won't be entirely wrong.

Now the Wii costs even less to make - Nintendo has cut its manufacturing costs by 45%, according to estimates made by Credit Suisse analyst Koya Tabata. Tabata suggested that the cheapening of the system could provide Nintendo with the opportunity to produce a low-cost model for emerging markets, but we here in the established markets want to know one thing: Now that the Wii costs less to make, will it cost less for us to buy?

That question might be especially relevant for consumers in the UK, who recently saw the Wii take a hike in price due to the declining value of the pound. Nintendo, however, doesn't see anything changing this situation, and told Edge Online that "regardless of the cost price of manufacture, the decision to raise the [Wii's trade] price to retailers in the UK was taken due to the severe depreciation of the pound."

Even though the Wii lagged behind the PS3 in Japanese sales last month, arguably due to a shortage of software on the Wii and a number of new notable titles on the PS3, Nintendo's not going to drop prices as long as people are buying. If Tabata's on the money, then we may see the profit gained by cheaper costs offset lagging sales, if there are any. Either way, whoever at Nintendo figured out a cheaper way to tape two GameCubes together has just earned a promotion.

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Yeah this was also posted on Engadget so I guess the wii doesn't just print money but also is cost effective. Pretty sporting of Nintendo for a toy company.

Also, Keane that is a major avatar change. So I'm guessing you liked Krillian from Dragonball? I was always more of a Yamcha fan myself.

Tenmar:
Also, Keane that is a major avatar change. So I'm guessing you liked Krillian from Dragonball? I was always more of a Yamcha fan myself.

I dig Yamcha as well, but nobody beats Krillin, especially in Old Man Krillin form.

Hmm, as long as Housewives and old people will buy it Nintendo is still making a profit. Sucks for England though.

Also Keane, you finally have an avatar I know!

Now Nintendo doesn't have to sell as many units to make the same massive profit. Why should we care if the Wii doesn't drop in price when the PS3 still costs more than 3 Wiis?

The UK will remember this, Nintendo... and when you least expect it...*POW*

Well, costs to produce depleting woudln't make them want to make the console any cheaper now, would it? Nintendo aren't out to help make the world a better place, they are a business trying to make a PROFIT. It is already probably the cheapest console out there, they don't need to compete anymore.

But try makeing the WiiFit board cheaper please Nintendo? I would like one, please.

Ha! This is the same theory a lot of alcohol companies that produce pre-mix drinks use. They drop the alcohol content (therefore attracting less tax due to the lower content) yet keep the prices the same. Potato chip companies will do the same thing with the size of chip bags. It's clever business really.

Well, it's not like you're getting only two-thirds of a Wii.

Anyways, This wouldn't be so bad if they had kept the price the same, but I really do think they should drop the UK price back to where it was at the very least.

Keane Ng:

Tenmar:
Also, Keane that is a major avatar change. So I'm guessing you liked Krillian from Dragonball? I was always more of a Yamcha fan myself.

I dig Yamcha as well, but nobody beats Krillin, especially in Old Man Krillin form.

I never got how Krillin couldn't grow hair when he was young but when he got old he finally could grow hair, usually works the other way around.Then again I'm trying to apply logic dragon ball so....

Keane Ng:

Tenmar:
Also, Keane that is a major avatar change. So I'm guessing you liked Krillian from Dragonball? I was always more of a Yamcha fan myself.

I dig Yamcha as well, but nobody beats Krillin, especially in Old Man Krillin form.

Ah true that. I wish to god he actually hit something other than pillars and rocks with his damned Destructo Disc...maybe a living being every now and then?

Trunks and Android 17 4 life.

And I didn't get any rebate on the Wii I bought as an easter present for my wive. Or on the Guitar Hero version I bought as an easter present for ME!!!

Doug:
The UK will remember this, Nintendo... and when you least expect it...*POW*

Considering how much we in the UK have allowed ourselves to be bitch-slapped by Nintendo (and all other console makers for that matter) for the last 20 odd years I doubt that anything will change, would be nice not to get shafted with higher prices for a change though...

Doug:
The UK will remember this, Nintendo... and when you least expect it...*POW*

Didn't you people say that when Nintendo banned Japanese and American import sales in England during the gamecube years?

What, you guys have forgotten that already?

"That question might be especially relevant for consumers in the UK, who recently saw the Wii take a hike in price due to the declining value of the pound"

^ All you UK people complaining. Read that over and over until you get it through your heads. It's not like they hiked the price up claiming it was due to the price of manufacturing. It's to keep things even (after exchange rate) for various countries. SIMPLE economics.

(This REALLY is a forum full of whining kids, isn't it? Too bad my work blocks IGN. Oh wait.)

Darkong:

Doug:
The UK will remember this, Nintendo... and when you least expect it...*POW*

Considering how much we in the UK have allowed ourselves to be bitch-slapped by Nintendo (and all other console makers for that matter) for the last 20 odd years I doubt that anything will change, would be nice not to get shafted with higher prices for a change though...

Terramax:

Doug:
The UK will remember this, Nintendo... and when you least expect it...*POW*

Didn't you people say that when Nintendo banned Japanese and American import sales in England during the gamecube years?

What, you guys have forgotten that already?

To be completely honest, I don't personally care as I don't have a Wii and wasn't planning to get one anyway. Although it doesn't surprise me Nintendo are being dicks to us, and seem to have been for a few years at least.

Doug:

Darkong:

Doug:
The UK will remember this, Nintendo... and when you least expect it...*POW*

Considering how much we in the UK have allowed ourselves to be bitch-slapped by Nintendo (and all other console makers for that matter) for the last 20 odd years I doubt that anything will change, would be nice not to get shafted with higher prices for a change though...

Terramax:

Doug:
The UK will remember this, Nintendo... and when you least expect it...*POW*

Didn't you people say that when Nintendo banned Japanese and American import sales in England during the gamecube years?

What, you guys have forgotten that already?

To be completely honest, I don't personally care as I don't have a Wii and wasn't planning to get one anyway. Although it doesn't surprise me Nintendo are being dicks to us, and seem to have been for a few years at least.

Then what was the point of your previous comment? Didn't read like a sarcastic comment - more like an angry ex-Nintendo fanboy.

Terramax:

Doug:

Darkong:

Doug:
The UK will remember this, Nintendo... and when you least expect it...*POW*

Considering how much we in the UK have allowed ourselves to be bitch-slapped by Nintendo (and all other console makers for that matter) for the last 20 odd years I doubt that anything will change, would be nice not to get shafted with higher prices for a change though...

Terramax:

Doug:
The UK will remember this, Nintendo... and when you least expect it...*POW*

Didn't you people say that when Nintendo banned Japanese and American import sales in England during the gamecube years?

What, you guys have forgotten that already?

To be completely honest, I don't personally care as I don't have a Wii and wasn't planning to get one anyway. Although it doesn't surprise me Nintendo are being dicks to us, and seem to have been for a few years at least.

Then what was the point of your previous comment? Didn't read like a sarcastic comment - more like an angry ex-Nintendo fanboy.

Well, it was alittle sarcastic, alittle annoyed at the way corporations generally treat our country (UK), and alittle just mucking about ;) Sorry if you got the wrong end of the stick.

Sewblon:
Now Nintendo doesn't have to sell as many units to make the same massive profit. Why should we care if the Wii doesn't drop in price when the PS3 still costs more than 3 Wiis?

The Sony takes a hit with each PS3; Nintendo makes money with each Wii so you ask the guy who is losing money to lose more money but you cannot ask the guy who was making money before and is making even more money now to drop the price. I really don't understand some logic.

45% is a major cost cut in manufacturing. Wonder what they changed.

midpipps:

45% is a major cost cut in manufacturing. Wonder what they changed.

Probably very little, once you're making something electronic it will gradually get cheaper over time anyway as more advanced tech supercedes it and the product becomes (relatively) easier to make.
The fact that they've already got the equipment to make it, plus the sheer number they are making, probably accounts for a lot of that drop.

Meh.

If they get the price under 150, I might start to consider it worth getting one for the three or four games I'm interested in. Maybe 160 if Nibris ever defy expectations and bring Sadness forth out of vaporware hell.

Doug:

Well, it was alittle sarcastic, alittle annoyed at the way corporations generally treat our country (UK), and alittle just mucking about ;) Sorry if you got the wrong end of the stick.

Aye, I fully agree. It's just most, no matter how much like muck they're treated, they carry on buying Ninty products.

Darkong:

Doug:
The UK will remember this, Nintendo... and when you least expect it...*POW*

Considering how much we in the UK have allowed ourselves to be bitch-slapped by Nintendo (and all other console makers for that matter) for the last 20 odd years I doubt that anything will change, would be nice not to get shafted with higher prices for a change though...

A nice game of rockband at 150 anyone? when the full set came in at 80 something in the states ? or the fact that EA have yet to release the rockband 2 instruments here in the UKsome (fast approaching) 6 months ago? anyways why would ninty want to drop the price of a product that`s selling like hotcakes when they can milk us for more cash?Wonder if nintendo will limit the amount of wii reaching the uk further for christmas so there`s another stampede to get one?

Terramax:

Doug:

Well, it was alittle sarcastic, alittle annoyed at the way corporations generally treat our country (UK), and alittle just mucking about ;) Sorry if you got the wrong end of the stick.

Aye, I fully agree. It's just most, no matter how much like muck they're treated, they carry on buying Ninty products.

Yeah... But it's hardly an isolated incident is it now?

Take Microsoft... (and I'm not talking Xbox here, but windows/ MS office and such) - a lot of their products have been sold at $1 = 1.

I don't need to point out that generally means we've been getting charged at least 150% of the American price in most instances.

Still, it's annoying.

As for the Wii... If the story of it selling for $6 profit (at $250) is true, it's now gone from a manufacturing cost of $244 to $134.20

If they honestly keep the sale price the same, they've gone from $6 profit to $115 profit

a 1900% increase...

Wow. So now, selling 1 Wii is profit equivalent to selling 19 of them...

You can't fault them on their business sense there. >_<

 

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