Why doesn't Nintendo charge more for the wii?

Question

Seems like a simple thing to do... Just sell the wii to distributers for something like $325 and re-list it's suggested price to around there. Then all the sudden you're making in revenue all the profits that the ebay people are making.

Then as production meets up with the diminished demand from the price jack gradually ease the price back down to more profitable levels.

Is there a law that prevents this or something? cause you'd think they'd be doing this already if there hands weren't tied.

Answer 1

Good question. I agree that that would be a good strategy. But maybe they feel like it isn't worth it to take a chance and raise the prices. PS3 has done the worst because it's so expensive, so people resort to wii and xbon 360. Maybe the fact that the Wii is cheap and fun, they don't want to ruin the image.

Answer 2

Well, logically this wouldn't please the consumers interested in purchasing a Wii. In fact, I can't recall any time where a company has raised the cost of their product because of how well it sells. I am fairly confident that the Wii price is so low due to the lower system specifications then either the PS3 or the Xbox 360. The Wii graphics are only a step above that of Nintendo's last generation console, the Gamecube. In fact, The Legend of Zelda: Twilight Princess looked almost 1:1 graphically similar on the Gamecube and the Wii.



This may have made sense then the Wii was much harder to find, but lately I have seen Wii's all over the place. The Wal-Mart I work at has at least 5 out on the floor and more back in the cage. The Gamestop I work at also has a few as well.

Answer 3

They would get huge backlash from raising their prices and kill demand. Remember, only a few people are buying the hiked up prices on eBay. Most people are getting theirs at stores for $250. Those people might not pay $325. Plus, Nintendo is already making a ton of profit at the price of $250. They don't need more money.

Answer 4

The Wii is dubbed as a casual gaming console, so the price is lower. They aren't losing any money from the low price, and sales are way up. Bumping up their price would cause less sales. It doesn't have an HDD or 1080p resolution either, which is another reason why it's so cheap.

Answer 5

Because then sales would plummet drastically, and they'd end up dropping back to $250 in just a few weeks.



The way console prices are consistent across all stores as dictated by the manufactrer already brushes up against anti-trust laws. jacking up the price would likely make it get more scrutiny.

Answer 6

I believe the main reason is because the processing power of the Wii isn't up to par with that of the 360 or ps3. Or maybe they're just a nice company.

Answer 7

Because if it was more, it's going past the $250, or buying point for some people.



Also, Nintendo NEVER raises their prices

Answer 8

its because its not as featured as the xbox 360 or the ps3. it has no dvd player, no music player, most of the games dont have online. and its not next gen. if the wii was more expensive then not as much people are gona get it.

Answer 9

I wondered that too, the guy at Game Crazy said because the graphics aren't that good compared to PS3 and such, but I don't know I LOVE my Wii and would have paid more if I had to!

Answer 10

Well,In my opinion it's pretty expensive as it is now.



But I bet there is some kind of restriction for raising prices on items randomly.



Also,If the prices were higher the stores that hold them would have to pay more to hold them in stock.