Cheap Wii Console

>> Investigation into Nintendo's pricing structure

Posted 23 / 05 / 2010

One thing is for certain, the Wii has been a console in high demand, this has led to people paying 50% or more over the recommended retail price. For a console to retain such a demand and initial cost structure is unusual. It's common parlance amongst console manufacturers to firstly list the console at a premium price, but this price is usually slashed to 50% or even 75% of the original rrp within a few years.

Take the Xbox 360 for example, it first retailed around about £300, but can now be purchased for £134.99, signifying a near 66% drop in price. The Ps3 is maintaining a price of £300, but this is probably due to Sony producing the console at a large loss to begin with. And unlike with their PS1 and Ps2 consoles, Sony are simple not in a position to lower their price further.

A cut in price is usually the result of flagging sales. And due to the Wii huge popularity in the UK, Nintendo have not needed to resort to any price cuts. Indeed, to buy a new Wii for a cheap price has just not been possible. It began retailing around £170 and is still selling for that price. Which is bad news for any potential owners looking for a bargain.

There have been rumours online that Satoru Iwata (current Nintendo boss) may slash the price of the Wii in Europe. Sales have begun to flag for the first quarter in 2009. However Satoru claimed slashing the price will not improve sales, it was his belief that the slowing sales were due to a lack of new games being launched, rather than the price of the console off-putting potential new customers.

This news has upset some European gamers, left irate, believing Nintendo are profiteering in Europe and the UK. Current estimates suggest Nintendo make $80 profit per console in Europe, but only $13 in Japan. Which on the face on it appears unjust.

Ebay currently looks the best option for bagging a bargain. Some sellers are pricing new consoles in the region of £150, and second hand in the region of £130. Not a huge saving, but better than nothing.