Analyst: Wii Manufacturing Costs Down 45%

Analyst: Wii Manufacturing Costs Down 45%

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.