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Wii now costs 45 percent less to manufacture

According to a note from analysts over at Credit Suisse, manufacturing costs for the Nintendo Wii have dropped 45 percent since the console launched in late 2006.

Analyst Koya Tabata, speaking to the Financial Times, added that Nintendo could now choose to cut the price of the Wii and still make money, while at the same time stimulating new sales. Tabata also noted that the firm believes Nintendo will release lower-priced models for emerging markets such as South America.



Doing the math shows that even with the current exchange rate for Yen-Dollar, the Wii only costs about $140 USD to make. The console is sold for $250 USD in all regions it is available.

Written by: Andre Yoskowitz @ 7 Apr 2009 11:12

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• 10 comments

• xblade132

  Holy hell, only $140 to make? Lets hope for a price drop then I might consider once again to get a Wii specifically for VC.

  7.4.2009 11:42 #1

• Amak

  Don't get your hopes up...this IS Nintendo after all.

  7.4.2009 18:42 #2

• xblade132

  Originally posted by Amak: Don't get your hopes up...this IS Nintendo after all.Very good point. =\

  8.4.2009 08:27 #3

• SDF_GR

  Will cost 15% (at least) less to buy?

  8.4.2009 08:52 #4

• DXR88

  if this is true, we could see the Wii price anywhere Between $160-$180
  
  my guess is $175

  8.4.2009 12:26 #5

• Oner

  If and I do mean IF Ninty was to price drop I don't see them going below $200. Below that will not be for still a while...unless they REALLY want to hurt Sony and more so MS (in terms of current rush sales not long term).
  

  
  
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  8.4.2009 14:12 #6

• inagasake

  I doubt Nintendo drops the Wii's price when demand for a Wii is still very high.

  8.4.2009 21:46 #7

• Memnock

  I see a price drop at least by Christmas time. Wiis are still a fairly hot item, but the crazy demand and shortages are over. I see plenty of Wiis in stock in every store I got to that sells them.

  9.4.2009 02:16 #8

• inagasake

  That's true. But Nintendo is making a sweet profit now while SONY and I think M$ (Xbox 1 lost them lots of money) are still in the red console gaming wise. Who cares about the race when you're profiting handsomely? The soccer moms and other non-traditional gamers may abandon them if and when the wiifad ends but Nintendo will always have their Nintendo fanboys and children who will buy anything Nintendo. I say that Nintendo is not going to cut until they feel threatened by M$ and SONY. An Arcade 360 is cheaper than a Wii (no hard drive sucks but still) and yet Wii is still going strong with the inflated price point. This isn't the first time Nintendo kept a system at an inflated price. The DS Lite launched at $130 three years ago and it's still $130. I doubt a $300 PS3 would make a difference either on the Wii here. Not until the Wiifad dies down here like it has in Japan. If it ever will before the next gen.

  9.4.2009 12:36 #9

• pigman

  Hmm... They're really making the moola in the UK then, what with the recent increase in price of the Wii.

  11.4.2009 09:15 #10