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Nintendo not cutting hardware prices News

Wii DS News by Robert Purchese

25 April, 2008

Nintendo boss Satoru Iwata has said price cuts for Wii and DS are unlikely this year.

He was chatting about the recent financial papers in an analysts' meeting today, and said he felt no pressure to lower the cost of either piece of hardware to stay competitive.

"Our earnings projection for the year is not based on hardware price cuts, and I don't think we are going to need them," said Iwata.

Yesterday Nintendo told us the Wii has reached nearly 25 million worldwide sales, and the DS has thundered to over 70 million.

Sales for the company were up 73 percent across the financial year, while operating income was up 115.6 percent and profit up 47.7 percent.

The Wii currently retails for GBP 179.99.

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Comments: 1-50 of 66 in total | next 50 »

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dr_lha
25/04/08 @ 14:53
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Fair enough really. In the USA at least, you can't keep Wiis and DSs on the shelves.
Widge
25/04/08 @ 14:57
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think its been an interesting tactic of releasing a console immediately at a price that people want to buy one for
Prodigy_BE
25/04/08 @ 14:58
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Yes, but the system is 18 months old, the hardware prices and production costs have gone down, and on top of that, they made money on every Wii and DS sold from day one.

So why not cutting consumers some slack, drop them prices a bit, and let them have some more money for software. Or bundle a few games with every console sold. Zelda TP and stuff.

Me thinks Nintendo's Nr 1 position is making them arrogant.
GamesProgrammer
25/04/08 @ 14:58
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To be honest i think there regretting they didnt come in at a higher price point than £179.99 now
Madafunkola
25/04/08 @ 15:00
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"Me thinks Nintendo's Nr 1 position is making them arrogant."
Ooooo - this generations Sony?

/tries to put pin back in grenade
/fails
/runs
Rash'
25/04/08 @ 15:06
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Prodigy_BE, Not arrogant, just has no incentive to drop price. Why would they when consumers are happily snapping them? The relationship between manufacturer and consumer is a simple one. The manufacturer wants the consumer to buy their product. The consumers decide if they want it or not. The manufacturer responds accordingly. Wii is more than competitive which doesn't give Ninty any reason to drop price.
Edited 2 times, most recently on 25/04/08 @ 16:11
Triggerhappytel
25/04/08 @ 15:07
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Well ofcourse there's no need; they can't make the damn machines quickly enough, so why would they want to unnecessarily dent their own profits by reducing the sale price?!
Nikanoru
25/04/08 @ 15:09
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Yes, but the system is 18 months old, the hardware prices and production costs have gone down, and on top of that, they made money on every Wii and DS sold from day one.

So why not cutting consumers some slack, drop them prices a bit, and let them have some more money for software. Or bundle a few games with every console sold. Zelda TP and stuff.

Me thinks Nintendo's Nr 1 position is making them arrogant.



If you were a console manufacturer and you had trouble keeping your system on the shelves even though you're already producing ungodly amounts of them, would you seriously think "hey, let's lower the price"?

Seriously? Really?
japstersam
25/04/08 @ 15:11
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i think theres no need to drop the price, its already at a very reasonable price for a console anyway.gooo nintendo!
TheBoyChris
25/04/08 @ 15:12
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They're a business - if it's selling well at a price you've already set there's no point in dropping it, especially when you're already considered to be incredible value for money.
imamazed
25/04/08 @ 15:15
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Hmm, The DS can stay where it is, but £180 for the wii is still too expensive imo.

MORE families would buy it if it was £120. You can get a 360 for £160 these days too, which makes it look poor value in comparison.
smelly
25/04/08 @ 15:17
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"MORE families would buy it if it was £120."

you sir.. are an idiot
mischief
25/04/08 @ 15:19
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If it came down £50 then I could justify getting one for a bit of "casual" action. I bet I'm not the only person who has a PS3 or 360 who fancies a dabble, but not at current price.
Triggerhappytel
25/04/08 @ 15:22
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Anyway, forget this, I want the PS3 to get a PSThree redesign and the size and weight to subsequently drop to about half, and also the price to come down to sub-£200.

And can you do this very quickly please, Sony, as I want to get one soon for GTA and MGS. Thanks.
CallousB
25/04/08 @ 15:23
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I thought they might have dropped the DS price in Japan..but that's about it.

A Wii price cut won't happen for a long time. You'll see new colours before that happens.
Penguinzoot
25/04/08 @ 15:24
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Nintendo not cutting hardware prices: "I don't think we are going to need them", said Iwata

Neither do I actually ;-)
Razz
25/04/08 @ 15:30
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Bit of a non news item really. Makes perfect sense. Hardly news worthy imo.
Prodigy_BE
25/04/08 @ 15:30
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Yes, but the system is 18 months old, the hardware prices and production costs have gone down, and on top of that, they made money on every Wii and DS sold from day one.

So why not cutting consumers some slack, drop them prices a bit, and let them have some more money for software. Or bundle a few games with every console sold. Zelda TP and stuff.

Me thinks Nintendo's Nr 1 position is making them arrogant.


If you were a console manufacturer and you had trouble keeping your system on the shelves even though you're already producing ungodly amounts of them, would you seriously think "hey, let's lower the price"?

Seriously? Really?


You do realize that they could have easily boosted production a long time ago, but the "it's still sold out" is more valuable to them.
I used to think that Nintendo was 'the friendly giant', but not anymore. They're just 'the giant' now. :)
superjag86
25/04/08 @ 15:34
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As long as there's demand they can charge what they like. That's capitalism for ya!
figgis
25/04/08 @ 15:35
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You must be young then Prodigy, they were cunts in the SNES & N64 days too (but made top games).
Edited 1 times, most recently on 25/04/08 @ 16:36
SlackMaster
25/04/08 @ 15:38
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It's selling silly amounts so they have not incentive to drop price and won't until sales begin to slow. Strangely enough I though Wii Fit wouldn't sell that well at £69.99 and I certainly wouldn't buy it at that price, but I was standing in HMV today and people couldn't throw their money away quick enough to get it.
kestral
25/04/08 @ 15:38
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Analysts predict that if nintendo can't sell enough consoles the price will drop. ;)
ProfessorLesser
25/04/08 @ 15:39
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"You do realize that they could have easily boosted production a long time ago, but the "it's still sold out" is more valuable to them.W

Got any evidence to back this up? Seems to me they're long past the need for spin. If they could be making more units to make more money with, I think they'd be doing it. This isn't a launch issue - Wii has made its mark already.
Prodigy_BE
25/04/08 @ 15:42
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/wishes he was still young.

I'm 31 now, so I grew up with NES and SNES. But never saw the biz side of things. My knowledge in sales didn't start until I started selling dope :)
superjag86
25/04/08 @ 15:43
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You do realize that they could have easily boosted production a long time ago, but the "it's still sold out" is more valuable to them.

Not quite true as their factories are running at maximum capacity so to produce more units they would have to build more factories. They could easily afford this but I think even they are worried about the bubble bursting, although it doesn't look like that's happening anytime soon...
jonsaan
25/04/08 @ 15:47
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I think the Wii is pretty expensive for what it is. When you factor in additional controllers, classic controllers, battery chargers etc.
bigbadbeasty
25/04/08 @ 15:50
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The Wii has now sold 25 million consoles, you can hardly say they are have been poor with production. Nintendo would be crazy to lower the price, it would be an unbelievably bad business decision.

The fact that the 360 is at a lower price now does not really matter to Nintendo, has it effected there sales? No.
hahayou
25/04/08 @ 15:59
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Obviously they shouldn't drop the hardware price, but how about splashing some of their ridiculous amounts of cash around to get more games on the shelves? Buy some good developers and get Pikmin, Fire Emblem and NSMB2 on the DS, for instance. Do Bit Generations for WiiWare. More stuff like Wii Sports/Play (but better) - why not have 5 different games the series so you can get 4 different mini-game compilations when you buy 4 remotes? Hire some indies doing cool stuff and make full games.

edit: And take some risks! They're basically at that point in a Halo match where they're miles ahead and can start trying to get kills by landing warthog stunts on people instead of playing conservatively and hiding behind rocks...
Edited 2 times, most recently on 25/04/08 @ 17:27
Feanor
25/04/08 @ 16:00
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I think they should raise the price in the US to $300, then maybe I'd actually see one sitting on a store shelf.
InsoFox
25/04/08 @ 16:04
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"I think the Wii is pretty expensive for what it is. When you factor in additional controllers, classic controllers, battery chargers etc. "

It's the same story with all the consoles, though, especially when you're forced to go with Nintendo's own peripherals like the controller. I was walking along oxford street the other day looking for a Wii RGB scart cable. In HMV the official one was something like £38 (!), in zaavi it was £25, and in Game I picked up an unofficial one that worked like a dream for £3.99. That's not always an option, though, of course.

There are a whole load of extras which are really only 'semi-optional', in that it would be really annoying not to have them, such as a recharge kit, an extra controller, for me an adapter for wired internet, a classic controller for virtual console games... this stuff seriously adds up!
Nikanoru
25/04/08 @ 16:17
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You do realize that they could have easily boosted production a long time ago, but the "it's still sold out" is more valuable to them.
I used to think that Nintendo was 'the friendly giant', but not anymore. They're just 'the giant' now. :)



Oh god not this again.

Yeah, they're obviously keeping production down, as evidenced by the low amount of consoles reaching consumers. Am I right or what?
Andy247
25/04/08 @ 16:18
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Surely the point of a price drop is not because it's necessary, it's because it's possible? Nintendo are selling them as quickly as they can get them on shelves but we can't reasonably expect that given the hardware architecture they've been selling at a loss! So if they're already making a profit, and the manufacturing process will have come down in cost, why wouldn't they reduce the cost?

The only answer is greed.
Davemanz
25/04/08 @ 16:21
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Eh, the price for both products is pretty fair (in the US at least). Plus I already own both. I paid full price for my DS Lite when it was first released and it's definitely worth every penny. It's not like the price is stopping anybody from getting one anyway.
smelly
25/04/08 @ 16:28
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>You do realize that they could have easily boosted production a long time ago,


Again .. that is quite frankly the 2nd most stupid thing i've read on here today.


smelly
25/04/08 @ 16:31
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>why wouldn't they reduce the cost?

Geesus.. some f-ing morons on here arent there?

They.. cant.. make.. enough.. fucking.. machines.. they.. disapear.. the .. moment.. they're.. put.. on.. shelves..

Lowering.. the .. price.. will.. make.. that.. worse..


Oh i dont know why i'm bothering you're obviously the dumbest kid in your class at school.
Kryon
25/04/08 @ 16:34
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Why on earth would Ninty cut prices? Jeez, they're managing to sell Gamecubes for £180 by marketing it at overweight females and it's actually working!
canIdoyabombsforya
25/04/08 @ 16:41
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/I blew £425 on a PS3, most of the blu-ray movies had been on TV 5 times and cost £20, the games were not real 1080p only upscaled, Linux runs like a dog, to rub salt in my wounds the PS3 is now availble for £239 almost a whopping £200 price cut in less than a year.
/So please Nintendo, how about losing some money on your runaway success just to make me feel better? I mean how dare you charge £90 less than an iphone. I'm gonna buy a fully wired up Core 360 in protest.
:))
Madlax
25/04/08 @ 16:43
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If they ever have to price-cut, then it will be for the DS in japan only, as it has been outselled by the PSP for awhile now by nearly 2-to-1.

As for the rest of the world.....there is no real incentive.
Penguinzoot
25/04/08 @ 16:46
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You do realize that they could have easily boosted production a long time ago, but the "it's still sold out" is more valuable to them.

Oh god not this again.


Nikoranu +1

I have no idea whether Nintendo could have easily increased production. Maybe the costs of setting it up were prohibitive; maybe they didn't know (and perhaps still don't know) how long the amazing demand for the Wii would last, who knows?

Ask any exec (or even a management trainee) whether they would prefer to be unable to meet demand so they get the "it's still sold out" kudos, or have products on the shelf they can guarantee selling, I can pretty much guarantee what they would say: Money in the bank every time.

Oh, and this:
So if they're already making a profit, and the manufacturing process will have come down in cost, why wouldn't they reduce the cost?

Capitalist company in capitalist economic system existing to make money shocker!
Edited 1 times, most recently on 25/04/08 @ 17:54
cyber_nicco
25/04/08 @ 17:04
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I think the Wii is an overpriced piece of mediocrity, and a serious threat to gaming as we know and love it.

That being said, if Nintendo were to lower its Wii prices now it would be extremely irresponsible. As a publicly owned company, it has a responsibility to its shareholders to maximize profits, and I don't really see how keeping these prices is going to hurt their future sales...
Edited 1 times, most recently on 25/04/08 @ 18:07
Headache
25/04/08 @ 17:07
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Nintendo in continuing to print money shocker!

While the system continues to sell as well as it is there's no reason for them to drop the price, and as their financial estimates for 08/09 show they expect to sell even more over the coming year (and with a higher profit margin I'd imagine too.)

I'm interested to see what they'll be unveiling at E3 that will get people buying more games in their millions in the second half of the year.
secombe
25/04/08 @ 17:20
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I think the Wii is an overpriced piece of mediocrity, and a serious threat to gaming as we know and love it.

To name two recent examples, how is PES 2008 and Mario Kart in any way shape or form a threat to gaming as "we" know and love it? PES has single-handedly revolutionised football games at the first attempt and made it possible to play some seriously realistic games, and Mario Kart has the best 'casual' online gaming experience I've ever seen...my 47 year old female mother of 4 colleague at work plays online ffs!
BonzoBanana
25/04/08 @ 17:28
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I'm absolutely amazed there are still people who think nintendo couldn't ramp up production if they wanted to. Its not a powerful console at all. There are cheap laser printers with more processing. Nintendo don't own the factories where the main components are made and most of the assembly is done by subcontractors in china. When Nintendo had their own factories they were in japan but I'm unsure of whether they exist as fully fledged factories or just repair depots now. Anyway the point is Nintendo could easily ramp up production if they wanted to by subcontracting but why lower the price and saturate the market when you can control supply and keep prices high?

Nintendo's mission is to get as much money out of people as possible and thats it. They are not your friends, they provide entertainment and you choose to buy it or not.

Personally I resent the high pricing of the wii and the only game I really, really want is Mario Galaxy so I haven't bothered with one. I feel quite proud of myself for actually resisting to buy a console which is a rarity for me.

smelly
25/04/08 @ 17:56
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"I think the Wii is an overpriced piece of mediocrity, and a serious threat to gaming as we know and love it. "

It's funny.. i think the same about the 360/ps3..

At least nintendo are keeping traditional gaming experiences alive than just relying on shooters and racers which you can only tell apart by how pretty the pixels are..

But that's just me - each to their own.
smelly
25/04/08 @ 17:58
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"To name two recent examples, how is PES 2008 and Mario Kart in any way shape or form a threat to gaming as "we" know and love it?"

Presumably it's because you dont shoot things in either.
VMerken
25/04/08 @ 18:15
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... simple economics, yes? Demand, supply, all that?
azmol01
25/04/08 @ 18:19
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Are some people on this thread really that stupid?

Nintendo are a business, therefore their main aim is to be profitable, if their product is selling as fast as it is, then there is no need to drop the price, your feelings on the matter are irrelevant, the only thing that is important to Nintendo is making money and lots of it.

Yes a price drop would increase demand, further (if demand isn't high enough as it is), but in an odd turn of events that would actually be a bad thing for Nintendo, considering their present situation.

Nintendo are not your friends and I'll repeat they are a business who are out to make money and as much as humanly possible. If you don't want their products, then don't buy it, if you think they're being greedy, well, welcome to real world.
smelly
25/04/08 @ 18:25
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lol.

Well put

People seem to forget how expensive the ps2 was right up until the end.. Even after the 360 came out, it was still WELL expensive.. And why? Because PEOPLE WERE STILL BUYING IT!

I'd hate for some of you ever to go into business:

"hey frank.. this item is selling out quicker than we can get it in stock"
"really? Excellent, lets cut the price of it!"

Duh
Edited 1 times, most recently on 25/04/08 @ 19:27
Kryon
25/04/08 @ 19:50
#49
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@smelly

""hey frank.. blah blah, etc"

At least you've taken the first step and spoken with FRANK.

Crofto
25/04/08 @ 19:56
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For the Wii and DS consoles then fair enough, but I do feel the Wii's controllers could use a price reduction. It still costs £30+ for just the remote alone, which is pretty steep considering you need the Nunchuck attachment for some games (that's another £15 on-top).

Also doesn't help that there still isn't any official charging kit for the remotes, thus forcing us to buy traditional batteries or rechargeable ones, which in my experience aren't very reliable.

Of course, owning a Wii is still less expensive than the upkeep of either a 360 or PS3, but it's disappointing that Nintendo would keep prices for controllers so high when everything else, including the console, is so cheap.

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