With the Wii still selling like there's no tomorrow, retailers are left with some tough decisions in wake of this announcement from Nintendo.
The obvious answer is for retailers to increase the price of each new console by £20, retaining the already slim profit margin on each console. However, when customers see Wiis on the shelf for £200 standalone they're unlikely to want to purchase, particularly in these heavily-publicised hard financial times.
An alternative answer is for retailers to take the hit but buy fewer consoles, which would decrease their operating revenue but would at least allow them to maintain a reasonably-priced inventory. When you consider how many consoles the likes of HMV, Game and Gamestation buy in the UK each year you're talking about an increase of millions of pounds for Nintendo if retailers continue to buy consoles in the same numbers.
We'll see how this situation develops, but certainly don't be surprised if the next high-street retailer you wander into has the little white wonders starting at £200.
This is madness, credit crunch Britain strikes again!
I find it hard to believe that Nintendo are struggling, though. They've always made a tidy profit on the Wii from day one, and it's unheard of for a company to UP the trade price three years after launch! It should be going DOWN, not up.
Considering that you can get a 360 base pack for about £100 these days, this does take the piss somewhat. Surely it's the first time in console history that the price has gone up after 2 years!
But who can blame Nintendo really? The demand is obviously really high so any business would be crazy not to take advantage of that. After all they are not a charity.
I think they've made a massive mistake here. As the news story suggests, retailers will be reluctant to hike up the price so they might end up ordering less units, which could hurt Ninty.
Don't forget though that these are extraordinary financial times compared to the boom we've seen over the last ten years or so - yes, it's extremely unusual for consoles to go up in price, but I'd be surprised if other manufacturers didn't respond in kind over the next few months.
MS are already losing money on the 360, so I wonder what they will do...
This isn't good news at all, and the console will likely go down in sales due to the 360's cheaper appeal.
One more thing - what's with comments 1,3 and 5 - they are written by unnamed people :S
Damo decided to remove his name from such inciteful and hate-filled comments thanks to pressure from the Daily Mail.
Wow, going up?! That is a first, as far as I know. Sucks and its not right.
Just import a US Wii for $250 - that's about 70 pounds cheaper, plus you get 60Hz on all your VC games
With Sony and Microsoft taking continuous losses since the start of this generation, it's a wonder they don't start hiking their own prices
So as it stands it's either £200 for a basic Wii (or GC 1.5 as some would call it) or £200 for a 120GB Xbox 360 Elite.
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