Nintendo: No Price-Cuts for Wii This Holiday Season

George Harrison, senior vice president of marketing at Nintendo America, has announced that the Nintendo Wii game console will retain its $249 price-tag in the U.S. due to the fact that Nintendo has no problems with demand towards its latest game console. "We'll stay at $249 for the foreseeable future. We are still selling everything we can make," said Harrison. The Nintendo Wii has been selling in over 400 thousand quantities monthly in the U.S. in the past few months, according to figures from NPD group. The gaming giant has been having supply trouble to meet the demand for the Wii and has warned potential holiday customers that it simply can't keep up. Nintendo set the recommended retail price for the Wii at Â¥25 000 (about $204) in Japan, $249 in the U.S. and €249 ($342) in Europe.

News source: Xbit Laboratories

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How do you know that it's not more expensive to sell products in europe? Or at least for non-europeans to sell in europe? I'm pretty sure the problem is with europe and the high prices.... the companies don't charge more there because they feel like it.

Evolution said,
How do you know that it's not more expensive to sell products in europe? Or at least for non-europeans to sell in europe? I'm pretty sure the problem is with europe and the high prices.... the companies don't charge more there because they feel like it.

They charge more because we earn more than Americans do, thus they feel we can pay more. Work it out, what's the price difference between the Wii in Europe and the Wii in Japan or the US? It's between 30% and 40% more expensive. Do you honestly believe we pay 40% in taxes or something?
The price difference gets even bigger with more expensive goods, like the iPhone.

Kushan said,
They charge more because we earn more than Americans do,

that's not necessarily true my friend...

and the reason why is because you guys have better currency than the US dollar. If 1 euro was 1 dollar then it will be the same price. every time the euro increases the amount in dollar increases but you are not paying more. You are still paying 249 Euros for the Wii which at one point was close to the same amount in dollars.

You are comparing apples to oranges there....

I understand what you are saying but it's not the same

yes if I make $250 and you make 250 Euros then yes you do make more but you also spend in Euros and I spend in Dollars... do you understand what I am saying?

The main reasons behind the cost in Europe are the regulation and taxes, while to enter in USA require the authorization of FCC (and other regulation dept.) in Europe is more a marathon from EU community laws and local laws.

And the worst case is in England since they are not part of the EU so Nintendo must meet specifically the England rules (and taxes, *put here a comments anti-monarchy and why is expensive to keep one* ). The difference between England and USA is the market size, the same effort done to enter a USA (a big market) is done to enter to UK (a bit small market).

Of course there are even worst cases, for example "grey market countries", where Nintendo don't sell and/or care about this market and the only way to obtain one is importing (expensive). For example my wii cost $500 but the advantage is that i can chip-modded without worried about Nintendo.


Magallanes said,
The main reasons behind the cost in Europe are the regulation and taxes, while to enter in USA require the authorization of FCC (and other regulation dept.) in Europe is more a marathon from EU community laws and local laws.

The OP and Magallanes are correct. The conversion rate or the average house hold income has nothing to do with the pricing of the system. The layers upon layers of bureaucracy that is setup in Europe is probably the primary problem with the high prices.

Edit: at the same time, the reason why it is cheaper to sell in Japan is because there are no borders to cross with the product... it isn't because Nintendo wants to be nicer to their fellow Japanese.

I can tell you a very good reason to lower the price of the wii - to make it fair on us europeans. Just look at the difference in price between the European Wii and the US Wii! (The japanese one doesn't have wii sports, but the US and EU versions are identical).
There's no reason why it should be so much more expensive.

God! I'm sick of seeing this article pop up! It's like a bad, forwarded email. Why in the WORLD would Nintendo lower the price the Wii for any reason now? It's very hot, probably still hard to find... still cheaper than any of the competitors (I'd rather see everyone on a 360's IMHO) but once demand ebbs... THEN you'll see a price cut. No need for one now.

mcwilliams132 said,
God! I'm sick of seeing this article pop up! It's like a bad, forwarded email. Why in the WORLD would Nintendo lower the price the Wii for any reason now? It's very hot, probably still hard to find... still cheaper than any of the competitors (I'd rather see everyone on a 360's IMHO) but once demand ebbs... THEN you'll see a price cut. No need for one now.

Well, one reason they might lower price is because Microsoft recently lowered the price of their Core 360 to the same price as a Wii. Also, they're now replacing the Core package with the Arcade package, so you get 5 Xbox Live Arcade games with the console, so it can compete with the Wii's package, which has Wii Sports (outside of Japan).

It's true that the demand for the Wii is still high, so there really isn't a need to lower the price for now. The demand will probably die down by Christmas next year.