Archive for the ‘Toys R'Us’ Category

Nintendo’s profit on the Wii at a $199.99 MSRP.

September 19, 2009
How much will Nintendo make off the Wii at a 
$199.99 MSRP?

Updated from previous article: Friday, September 18, 2009


If the reports and sale ads for the stores*, that are appearing on the internet now, are correct, the Wii will get a price drop to $199.99 on September 27.
If $199.99 is the new MSRP for the Wii, and if it is costing Nintendo $107.79 to manufacture everything included with the console, Nintendo will still be making roughly $80-90 per Wii unit sold at the new $199.99 MSRP.

From the original manufacturing price estimate of $195.99*, to the new estimate in manufacturing costs reduction being 45%*, I would say Nintendo can manufacture and distribute the Wii, for less than $120. If correct, this would mean a Wii retailing at a MSRP of $149.99 or even $129.99 is possible, but not probable, in the very near future.

$107.79 may seem like a low cost to manufacture the Wii with everything in the box, but we must remember, the Wii is simply two GameCubes duct taped together*…
Do you think Nintendo is dropping the price of the Wii enough at the $199.99 MSRP?  Do you think when looking at numbers like these, that an analyst like Michael Pachter may be right in assuming that Nintendo will announce a Wii Plus HD next year and sell it alongside the current Wii?
If you don’t own a Wii, does the new rumored MSRP of $199.99 make it more likely you’ll buy one now?


Sources for rumored price drop:

Sources for manufacturing costs:

Nintendo’s profit on the Wii at a $199.99 MSRP.

September 19, 2009
How much will Nintendo make off the Wii at a 
$199.99 MSRP?

Updated from previous article: Friday, September 18, 2009


If the reports and sale ads for the stores*, that are appearing on the internet now, are correct, the Wii will get a price drop to $199.99 on September 27.
If $199.99 is the new MSRP for the Wii, and if it is costing Nintendo $107.79 to manufacture everything included with the console, Nintendo will still be making roughly $80-90 per Wii unit sold at the new $199.99 MSRP.


How much does it cost Nintendo to manufacture the Wii in 2009?
From the original Wii manufacturing cost of $195.99*, to the new estimate in manufacturing costs reduction being 45%*, I would say Nintendo can manufacture and distribute the Wii in 2009, for less than $120. If correct, this would mean a Wii retailing at a MSRP of $149.99 or even $129.99 is possible, but not probable, in the very near future.

$107.79 may seem like a low cost to manufacture the Wii with everything in the box, but we must remember, the Wii is simply two GameCubes duct taped together*…
Do you think Nintendo is dropping the price of the Wii enough at the $199.99 MSRP?  Do you think when looking at numbers like these, that an analyst like Michael Pachter may be right in assuming that Nintendo will announce a Wii Plus HD next year and sell it alongside the current Wii?
If you don’t own a Wii, does the new rumored MSRP of $199.99 make it more likely you’ll buy one now?


Sources for rumored price drop:

Sources for manufacturing costs: