Wii Price Possibly Being Raised..

[Sanj[UK]]

Unprecedented times set the stage for unprecedented measures.* ‬The Nintendo Wii could be the first console in history that will not only have held its launch price for over two years,* ‬but actually increase it.

On Wednesday news emerged that Nintendo will raise the Wii’s trade price by around* ‬£19* ‬per unit.* All eyes are now on the retailers, who will either absorb Nintendo's price hike or spread the burden to customers.

Ed Barton,* ‬Games Analyst for Screen Digest, believes that regardless of how retailers will react,* ‬Nintendo’s reasoning for the price hike is* “‬completely sound*”‬.

*“‬If you look at the Yen exchange rate over the Pound in the previous year,*” ‬he says,* “‬it has changed by thirty to forty percent.*”

“We looked closely at Nintendo’s figures in the last quarter and this exchange rate has absolutely murdered their operating profit.*”

Barton adds that the raised trade price of the Wii is not only* “‬perfectly justified*”‬,* ‬but could perhaps be a sign of things to come:* “‬When you look at all the data and financials it wouldn’t surprise me if Nintendo raised the price of Wii Fit.* ‬The margin on games hardware and peripherals is a serious problem right now.*”

The games industry has lived through decades and eras,* ‬but this is the first time it has faced a deep rupture in the global financial market* – ‬one which no one completely knows how many industries it has stretched through,* ‬nor how long it will last.

The biggest question right now is standing at the shop floors of the retailers.* ‬Edge has contacted all the* ‬UK’s major specialist and non-specialist outlets affected by the matter, to find out how each* ‬will address the Wii’s higher trade price.* ‬So far the majority have remained silent,* ‬with some* – ‬quite understandably* – ‬admitting they are* “‬still digesting*” ‬the announcement and* “‬need more time*” ‬to evaluate how to deal with it.

Barton,* ‬however,* ‬believes that there’s a chance the specialist and non-specialist retail outlets will approach the issue differently.*

“I suspect that non-specialists,* ‬in particular the large supermarkets,* ‬will just swallow the margin head,* ‬simply to get the footfall.*”

Yet if the superstores hold the price of the Wii,* ‬a big question looms over whether the specialist retail outlets can follow suit.* ‬Barton suggests that the* ‬UK’s superstores are* “‬financially better positioned*” ‬to take a hit,* ‬yet the specialist chains may not be able to absorb the price hike.

*“‬I think that one thing we need to keep in mind is the practicalities.* ‬I mean,* ‬games consoles are relatively large items,* ‬these aren’t the cheapest things to be keeping in store rooms and moving around the country.* ‬So I think we’re going to see a great deal of pressure on specialists.*”

“For all the* ‬UK retail industry,* ‬an* ‬£18*-19 ‬climb in trade prices will be enough to wipe out the margins completely,*” ‬Barton adds.* “‬System sales are never usually the best thing for specialist retailers anyway,* ‬in terms of margins,* ‬but at least the retailer has that icing where customers tend to pick up other products with the consoles.*”

Yet if the superstores sell the Wii at a markedly lower price than its competition, the specialist retail outlets may be about to lose a key loss-leader.

http://www.edge-online.com/features/...ctly-justified

Can they really charge that more for OUTDATED hardware..its a fuckin gamecube ffs!

[Mobileman]

Yep rrp is going back to 199, kit is trading at 146-149 at the mo but will go up

[{{909}}]

rrp has always been 179, considering the massive price drops the PS3 and 360 have had in the last 2 years It seems crazy Nintendo can even consider this.