Wii price cut not out of the question Satoru Iwata

The RRP of the Wii may actually drop one day, but it wont be soon

In a briefing to investors on Nintendo’s market performance, Iwata has mentioned that the price of the Wii – which has gone unchanged since launching in 2006, is not set in stone. “I have never said that cutting the suggested retail price is not in the cards. However, price cuts in one country can certainly affect other countries. For example, when you say that we should cut the price in Japan due to the current domestic market situation, once the suggested retail price is cut in Japan, people outside Japan will anticipate the same around the world. While the price cut is said to surely increase demand, it must be clear from a variety of analysis so far that the effect cannot last very long. Accordingly, if we really do enact a price cut, it must be exactly when it can maximize the business. At least for now, I have no specific ideas about the price cut at all.”

The Wii was the only console this generation to be sold at above cost since launch, and has bucked the trend of software sales as the main driver for profit. Console sales have been solid worldwide up until earlier this year, where a drop in Japan was soon followed internationally. The competing consoles, namely Microsoft’s Xbox 360 have now dropped to a price point where they are in direct competition with the Wii in terms of price. Even though a price drop is unlikely soon due to global economic crisis, it is comforting to know that the RRP may prove more competitive in years to come.

Source: Nintendo Investor Relations (translated)