Nintendo Won't Make a Wii Price Cut Just Yet

Nintendo is one of the biggest companies currently active on the market, as it has made some huge amounts of profit from the very successful Wii and DS consoles, which took the world by storm and, after quite a few years since their individual launches, are still registering heavy demand.

Recently, we reported on the fact that a Credit Suisse analyst forecasted a 45 percent drop in manufacturing costs for the small white Japanese console. This has fueled a lot of rumors about an impending price cut for the Wii, which would take it under the price of the least expensive console of this generation, the Arcade model of the Xbox 360.

But such a thing isn't true, says the Japanese company through one of its representatives, who has talked with Edge about this very sensitive subject. He says that, because of the unstable economic situation in some countries, like the UK, where the pound has depreciated, Nintendo was even forced to raise the price of the console.

“Regardless of the cost price of manufacture, the decision to raise the Wii’s trade price to retailers in the UK was taken due to the severe depreciation of the pound. From the Wii launch in December 2006 to December 2008, the value of the Pound fell by 43 percent against the Yen,” reveals the spokesperson, who adds that the dollar and euro have also fallen against the Pound by 22 and 18 percent, respectively.

Without concrete data about the manufacturing costs or about the price at which the Japanese company gets its components from other corporations, nobody can really know if the manufacturing price has fallen. But, at least according to the recent financial results, which revealed a drop in operating income, you can clearly see that Nintendo isn't experiencing the same big profit as a few years ago.