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Analyst: Wii Manufacturing Costs Down 45%

Rob Crossley's picture

By Rob Crossley

April 7, 2009

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The costs for Nintendo to produce a Wii console have nearly halved since the system launched.

That was the suggestion made by Credit Suisse analyst Koya Tabata in a recent note to clients. Tabata declared that manufacturing costs for the Nintendo Wii have been reduced by 45 percent when compared to its initial launch batch, produced back in 2006.

Tabata went onto suggest that the lowered manufacturing costs could lead the way for a price cut in Wii consoles.

Logistically this may not be so straightforward; Nintendo only just recently announced that the trade price of the Wii would climb by £19 due to the sustained depreciation of the Pound. The situation will be different elsewhere, of course, and Tabata argues that the Wii could be sold cheaper in emerging markets.

Edge has approached Nintendo with Tabata’s claims. A response could not be sought at the time of going to press.

Source: The FT.

nli10's picture
On April 7th nli10 said:

Raise the price £20 as planned and bundle in Wii Sports Resort as well as Wii Sports. You keep your value high and generate interest in consumers as planned.

Analyst also probably ignored the fact that they massively ramped up the supply chain which required capital and will have hit their margins.

Ozzman_79's picture
On April 7th Ozzman_79 said:

Oh good, more "suggestions" from "analysts." Just what we needed.

grognard66's picture
On April 7th grognard66 said:

I can't see Nintendo dropping the price anytime soon. As long as it keeps selling at close to its current rate it would be foolish for them to do so. Maybe when they see the momentum slow down for a quarter they will drop the price but I would be surprised if they do one this year.

E. Zachary Knight's picture
On April 7th E. Zachary Knight said:

There won't be a price cut this year. As you said, they are still selling quite well. Too well to justify a price cut. They are not afraid of the 360 and their lip service to budget gaming. They are not afraid of Sony's little rants. There is nothing putting them in a position to drop the price.

So once again, no price cut this year.