"I don't think any retailer has got the ability to soak up that sort of margin change," McCabe told GamesIndustry.biz. "I think I saw one story that said the supermarkets wouldn't be passing the price point on but I think they will. I don't think any retailer can take that sort of squeeze."
If the £20 Nintendo is adding to retailer prices is passed on to consumers, the Wii will now cost £199 ($275), a price that McCabe thinks Nintendo could have gotten away with from the very beginning. Now that the price is going up, "It will have a negative effect on the sales... I think we'll still end up with shortages come Christmas again, but through the summer it's going to have an effect." So at a higher price, McCabe expects, Nintendo will still sell every Wii this winter.