Analyst suspects Wii manufacturing costs are down 45%
By Donald Melanson 
posted Apr 7th 2009 3:34PM
posted Apr 7th 2009 3:34PM
[Via Joystiq]
posted Apr 7th 2009 3:34PM
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As long as there are wii shortages (are there?), what's the point in lowering prices?
I think it's just starting to get to the point where there aren't shortages. My understanding is that stores are able to keep it in stock now, just not in large numbers like other systems. I'm not sure if we'll see another round of shortages for the 2009 holiday season though.
@Serryl
I dunno 'bout that last bit, mate. I've probably had a dozen Wiis (is the plural of Wii Wiis or Wii?) sitting on the shelf for a month now. Most people that want a Wii already have one at this point. Wii Fit, on the other hand...
Lately it has been easy to find the Wii. Practically every store has them.
I still see flyers with the "limited quantity" thing everywhere, and yet I see shelves full of them...
I can't be all that shocked that this is happening. I purchased a Wii with our grand ol' stimulus funds last year. Main reason being that the Wii still tends to be the most reliable than the other systems (and at the time, the least expensive.)
After having it for about 9-10 months, I would really regret it if I forked over the money - but there needs to better games for this thing. Compared to the XBox 360 and PS3, it is very limited. Ah well, at least there's nostalgia with the old games via the "Virtual Console." I guess I should be happy considering I've had zero issues with the hardware.
I like how you used our stimulus package to purchase a Japanese product. Way to stimulate the U.S. economy there!
Internet Disclaimer: sarcasm and wit, may not translate as well when read
You're exactly right, it shows how stimulus funds don't really work to stimulate economy. I should've purchased an American product (MS) that is faulty and prone to breaking everything 8-12 months.
How it is any different than someone utilizing said funds to putting it against past debt is just the same.
I'm no expert, but when you bought a Wii you purchased an imported good. One of the components of GDP is net exports, i.e. Exports - Imports. Therefore by you buying the Wii the GDP shrank as opposed to you buying an Xbox. Plus when your Xbox broke, you would be giving someone a job at the repair center :)
Jmoney,
Increasing imports has no effect on GDP. In the formula you reference, there's also Consumption, which includes the value of Imports.
Wow. That is so much cash they are making.
Their profits would be up more than proportionally, assuming that their margin was less than 50% to begin with.
Just what I was thinking. I thought I'd heard they were making about $5 per console originally. If their costs have now fallen by 45%, they now cost approx $134.75 to make, leaving a margin of over $110. This a 2100% increase in margin, not (a proportional) 45%.
Wii or PS2, Dam thats a hard choice...
Exactly how I think of it, personally its hard to compare it to the 360 or PS3. Wii's are fun, but so are PS2's, neither gives that nice quality of game that the 360 or PS3 gives.
Im sorry if im mistaken, but i think Sam was being sarcastic.
I dont think he was. Perhaps he was making a joke.
Personally, if i didnt already have any consoles, the PS2 would be the best bet. The money saved would allow you to build a catalog of quality games for very little money, more than the 5 or so quality games available on the Wii.
Hell, some of the games would even look better.
PS3 has had no reliability problems BTW.
I can see them lowering cost when demand drops. From recent signs demand has slipped off its crazy course, while still ridiculous. But they are in the driver's seat on this now. Should they keep piling it on, or wait for the market to tell them they need a price cut.
My Ps3 is beginning to do some funny stuff lately.
Every time I play a DIVX, when the file ends I can do nothing to the system except shut it of. It wont let me get back to the XMB.
Some users have been having blue ray drive problems, but its a small amount no more than usual for a console (even when you consider how much more precise the drive has to be).
My ps3's blu-ray died 2 weeks after purchase. Sony fixed it under warranty but i wouldnt saythere are no qua;lity problems with the ps3
My PS3 froze up less than 1 hour after I got it, however it was fixed with a firmware update.
Never had an issue myself but I have heard that BD drives have been failing and Sony's been doing some kind of slimy evasion for some people. That said, you could probably have built the Wii about 5 years ago with the hardware it's using now so I would expect it to be reliable as a rock.
Milk it while you can. Apple and other companies have been doing that for years.
Lies, apple would never do such a thing.
for $199 or less i'd pick up a Wii, I have fun playing the one i got for my friend. Well, with the wii fit anyways. I spent 30mins just trying to beat her ski jump score.
she's not a friend. you like her. admit it. That is why you spend the money on her that you wouldn't spend on yourself.
Well, at least she is working on her forearms and hand-eye coordination.
@Kris
Lol.. was that sexual connotation intended? Or am I just perverted...? >
Yeah, they COULD drop the price, as a result of this, to boost sales............or they could:
1)-Start making bundles
2)-Release different colours
3)-Release some must-have software
and STILL turn a mad profit at the same time
I wouldn't lower the prices...
Why lower the price, they can barely keep them on the shelves now as it is, 2.5 years after first releasing. I'd push some new "must-have" title out there over the summer to drive sales again, and then wait for the inevitable Christmas season to bring in even more cash. Nintendo should be able to ride this price out for at least another nine months before even thinking about lowering the price.
Hell, with the profit they're making, I'd start selling bundles with a Wii and a Nintendo DS for $299.99. Push more unites, sell more software.
I couldnt imagine a world where the Wii could cost more than the PS3.
I think that would be the line right there.
When demand dips they will reduce the price.
It's an amazing piece of news, so you are telling us that when you mass produce an item and it sells well the price drops over time ? Amazing ! why don't all the other tech companies start doing this too ?
FYI Engadget when will you stop typing news stories that read like they were written by a crowd of naive teenagers ? I don't think analysts from Credit Suisse need to guess they do research just like real journalists (not bloggers)
Good point, because only adults are remotely interested in videogames.
Nevermind, I didn't read your whole comment. It says "written by" and I saw "written for."
However, I still think your opinion is irate to the point of contempt.
So how much does it cost to manufacture a Wii now? $40 dollars. That system is a POS and this is coming from a Nintendo fan. If it wasn't for SSBB, TP, and backwards compatibility (no longer have the Cube) I would of sold that POS ages ago. Nintendo Wi-Fi also pisses me off, thank God for XBOX Live, I can get decent online play there. Honestly the Wii should of been under $199 from the get-go with that outdated technology. If you were to duct tape two GCs what monetary amount would tha amount to?
I've been seeing Wii's at Best buy all the time lately. I think Demand has now leveled off to the point where you can pick one up in the store at any time. I was there this last weekend and lots of Wii's and even Wii fits in stock. I wanted a Wii before they were released, but now what, has it been 2 years? I just no longer care about it. I'm to invested in HD to go back to SD gaming. I've played the Wii a few times for a short time and besides the SD graphics, it's still basically a Kiddie system for the most part. 3rd party support as always is weak. The whole Online gaming feature looks lame. I don't know how much longer the Controller can save the Wii, other then to be sold to Retirement Homes. YES, Nintendo has gotten the entire Really Old People Market. To bad they don't buy any games and just play Wii Sports on the Wii Sports player. I'm all for them Gaming, but not a big Software selling house.
Considering the net loss of CHF 8.2 billion in 2008, Credit Suisse analysts are certainly to be trusted.