Wednesday, April 08, 2009
Wii production costs halved
The estimable of Credit Suisse banking corporation Koya Tabata has told investors that the cost of manufacturing the Wii has shrunk by 45% since the console first launched. Can you guess where we’re going with this? Whether Mr. Tabata’s estimate is based on industry-sourced fact or pure guesswork remains unknown. Then again it’s supremely likely that Nintendo, having sold untold squillions of units thus far, will have worked out many ways to make cost efficiencies by now. All of which must leave Nintendo with lots of room to manoeuvre on the Wii’s actual selling price. Question is, will they? Sadly, the answer looks like being no. The Wii is already very keenly priced and Nintendo seems to have no trouble in shifting every unit it manufactures. It’s a well known fact that Nintendo makes money on every console it sells too - i.e. unlike its rivals. Small wonder, then, that Nintendo of America’s Reggie Fils-Aime is moved to comment “Why would we?”. Well, er, slowing sales in the West and being beaten by the Playstation 3 in Japan are just a couple of reasons off the top of our heads, Reggie. But you’re the boss…
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