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Retail

Wii price to rise for UK trade

Wed 11 Mar 2009 2:16pm GMT / 10:16am EDT / 7:16am PDT
Retail

Nintendo "reluctantly" ups price of hardware due to depreciation of pound

Nintendo has said that it is to raise the price of the Wii in the UK due to the depreciation of the pound.

The system has a recommended retail price of GBP 179.99 in the region, and with a price hike of around GBP 18 – 20, will put considerable pressure on retailers' margin.

"Due to the severe and continuing depreciation of the pound, we are, unfortunately, having to raise our trade price to UK retailers of Wii hardware," said the company. "The price that they then offer to consumers is, of course, up to the retailers."

"We are only – reluctantly – raising our trade price now to retailers due to unprecedented and sustained depreciation of the pound. This is a problem brought about by extreme currency fluctuations that are a symptom of the global economic situation," said Nintendo.

Major retailers such as GAME, Gamestation, HMV and the supermarkets often offer bundled software deals in-store to increase margins on hardware.

9 Comments

The start of a trend?

Posted:5 years ago

#1

Rupert Loman
Founder & CEO

139 45 0.3

Posted:5 years ago

#2

Alexander Cederholm
Editor-in-Chief

42 0 0.0
No no no.... the Wii need to get a lower price! it's about time! The are making stuff all backwards...

Posted:5 years ago

#3

Craig Oman
Producer

14 0 0.0

Posted:5 years ago

#4

Chris O'Regan
Director and Co-Founder

7 0 0.0

Posted:5 years ago

#5

Phil Elliott
Project Leader, Collective; Head of Community (Live Team)

163 29 0.2
It's worth bearing in mind a couple of things here though.

First up, while Sony and Microsoft will have been working hard to bring down the cost of manufacturing their consoles in order to try and pass on price cuts to the consumer, Nintendo's always made a profit on its hardware and was the only one of the three platform holders to have the luxury of choosing its price from the start.

However, while you might therefore think this would enable Nintendo - with its strong cash position from stellar sales in the past two years - to bear the brunt of the strengthening yen, you should remember that the company's stock has been hit severely in the last year.

If Nintendo leaves the price as-is, it will impact its financial statement more severely, and suddenly the company that can do no wrong doesn't look so good - despite the fact that it is, in fact, doing no wrong...

On the other hand, if it raises the trade price slightly, it's probably a price point that its consuming market - a decent wedge of which is over 30 - still won't baulk at paying... assuming retail passes all of it on.

The whole stock price part of it might not make much sense, but it's very real to the people making fiscal decisions in Tokyo, and there's a huge element of needing to be seen to do something about it as much as actually doing anything.

I for one would be very surprised if the new hardware and software price points have any real impact on the current trends. And in the bigger picture, any losses there are likely to be offset by the release of the DSi.

Posted:5 years ago

#6
No..I think this price hike is wrong. The uk price has always been higher when compared to other terroratories when the pound was strong and in effect we were paying more for this simple console. To increase the price now that the pound is weaker is like a kick in the teeth. I think alot of people will definitely be considering the xbox more when deciding between the two and thats where nintendo will lose sales. But only time will tell if this increase impacts the sales of the Wii but IMO i think it will. I don't think MS will increase the price of the 360 and if sony brings in this rumoured price cut, this increase in price will reflect very badly for nintendo.

Posted:5 years ago

#7

Andreas Gschwari
Senior Games Designer

556 607 1.1
And i just read in the Metro that Blockbuster are doing an Xbox Elite version, complete with extra wireless controller and a copy of Resident Evil 5 for 219.99 GBP.

So for 40 GBP more than a Wii you can get a 360 Elite with 2 wireless controllers and RE5.

Spot the bargain!

Posted:5 years ago

#8

Jim Webb
Executive Editor/Community Director

2,246 2,228 1.0
While this may seem new to our industry, it's a common practice in many others. Business to business trade prices fluctuate quite often for many products.

I don't think this is going to start a trend so much as simply indicating that price cuts for the other consoles may not be happening anytime soon - at least in the UK.

Posted:5 years ago

#9

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