Wii price drop?

Why do we keep seeing these idiotic price drop posts? Are that many people who fail at basic economics? Do they not know the wii is selling at nearly 100,000 a month in Japan three times the amount of monthly PS3 sales where the PS3 is the cheapest? 90,000 a week in Europe once again several times more then their rivals or over 400,000 a month in the US once again three times their rival? The rest of the wii goes to the rest of the markets and is being stockpiled for the holidays. Why would they drop the damn price when they are selling out in a lot of regions and selling steadily in others?

That doesn't make one bit of damn sense to do. You don't drop the price when your rivals do.

Ok whatever pyscho i was just asking WOW take a time out you baby. I guess people cant ask a simple question on these forums without some idiot freaking out about one little post or question. Just take a deep breath ok its gonna be ok. WOW!PS2Dude89

It is a simple question its not like you were saying they were going just could they

[QUOTE="PS2Dude89"]Ok whatever pyscho i was just asking WOW take a time out you baby. I guess people cant ask a simple question on these forums without some idiot freaking out about one little post or question. Just take a deep breath ok its gonna be ok. WOW!Goron_Link

It is a simple question its not like you were saying they were going TO, just could they drop the price

I'll make it really easy

Higher the demand = Higher asking price

Lower demand = Lower asking price

The Wii is sold out worldwide for it's 10th straight month since launch = No price reduction

It's a resounding no! There is no reason to lower the price! There are no stories about lowering the price! The idea of linking the 360's and PS3's price drop to the Wii with an impending price drop defies the logic that Nintendo is doing well because they DON'T do what the rest of the industry does!

There is no price drop and won't be a price drop! Stop beating a dead horse! Nintendo made a system that actually performs! The competition built the regular "same system, prettier wrapping paper" and have to work a price skimming strategy. Nintendo made a wonderfully designed system that sells like hotcakes so they can price it at an entry level price and pick up everything that's at the bottom before the competition can get there!

It's simple! There is no stories on it, there are no announcements of it, there is no sound reasoning to believe it, and there is no reason to keep asking if it's going to happen!

There's no need to because demand greatly outweighs supply ten months after the launch. Add to that the fact that bigger and better first and third-party titles are coming within the next three months. Because Nintendo's already making a profit it could be said that if they DON't drop the price, the press would perceive Nintendo as "money grubbing", whereas if they DO drop the price there wouldn't be a single Wii to be found anywhere until June 2008 (if then). It's a tough situation for them, but on a lighter note they'll be making a profit no matter which road they take. So to answer the question: they don't NEED to. $249.99 USD is fine for the North American audience considering the enjoyment versus cost of ownership ratio.

To the topic creator: if you're asking this question because you yourself are interested, just do what I've had to do for the past ten months - wait until your budget allows a hardware purchase (I'll be hunting for one starting Thursday night). Eventually you should be able to afford a newWii or buy a refurbished one.

They will not drop the price because a: the system is outselling the competition in all regions with demand expected to increase in the holiday season. b: they are raking in the dough on each system sold wheras their competitors take a huge loss each unit and have to make that up based on royalties from the games sold for the system. So they need more systems out to hopefully breakeven or make a profit.

A recent story attempted to peg how much money Nintendo makes off each wii sold in USA, Europe and Japan.

Japan - $13 profit on each console sold
US - $49 profit on each console sold
Europe - $74 profit on each console sold

Europe typically each week has 90,000 wiis sold. That is a profit of over 6 mill a week. Of course due to how taxes, tariffs are handled it's a lot less then that but still quite a respectable amount.

US typically has over 400,000 wiis sold each month. That means they make over 19 mill a month on wii sales alone. Once again taxes, tariffs etc take a good chunch but what is left is still a hefty amount of money.

Japan typically sells 30,000 a week. Japan right now is the smallest wii market. 390,000 dollars each week. Still healthy when compared to their rivals. Note wii is the cheapest in Japan since wii sports isn't packed in. However the wii sports tie ratio to the wii is incredibly high so Nintendo pretty much ups the difference when you tally the profits they make each wii sports sold.

Why would they lower the price when it would cut their profits down?

price drops only happen when the system starts to slow down in sales. In fact Econ 101 states that the price is too low. This is why their is a shortage. When a shortage occurs price is suppose to increase until the price equalibrium is meant. A price drop would make the shortage even worst.chansaet

Actually they could just increase the supply, that way more people are happy and they make more money and sell more consoles.

[QUOTE="chansaet"]price drops only happen when the system starts to slow down in sales. In fact Econ 101 states that the price is too low. This is why their is a shortage. When a shortage occurs price is suppose to increase until the price equalibrium is meant. A price drop would make the shortage even worst.bugsonglass

Actually they could just increase the supply, that way more people are happy and they make more money and sell more consoles.

Don't you think that if they had the ability to increase production they would have by now?

They're making as many as they can as fast as they can. If they could make them faster they'd be doing that too.

They still wouldn't reduce the price. It's bad sense to reduce price just because your competitiors who are selling less do it.

Wii is selling like hotcakes, and it's the cheapest console on the market. No reason to lower price IMO.Zero_Space

QFT