As far as Gamestop's concerned, the recent PS2 price cut wasn't really worth the bother, but a drop in the Wii's price may become desirable for Nintendo.
Speaking to CNBC, the company's CEO, Dan DeMatteo, said of the PS2's drop to below $100, "To be honest, it really wasn't worth doing. If they'd done it earlier, publishers probably would have kept making games for the PS2, but once they've stopped, they've stopped."
For Nintendo, however, he reckons a price cut may become necessary to keep up the Wii's momentum. "I think [demand for] the Wii could slow down to the extent that Nintendo may want to cut the price", he said. "Nintendo has it within its arsenal to do that. The component costs have come down considerably. They used to break even on the Wii, but now they're making a considerable margin."
According to an analyst from respected financial institution, Credit Suisse, the cost of manufacturing the Wii has actually dropped by 45% since it launched. Whether this is due to real drops in manufacturing costs or currency fluctuation is unclear, however.
The official line from Nintendo has, however, remained unwavering. "Why would we?" said Nintendo of America's president, Reggie Fils-Aime, when asked about a Wii price cut recently.
Speaking to CNBC, the company's CEO, Dan DeMatteo, said of the PS2's drop to below $100, "To be honest, it really wasn't worth doing. If they'd done it earlier, publishers probably would have kept making games for the PS2, but once they've stopped, they've stopped."
For Nintendo, however, he reckons a price cut may become necessary to keep up the Wii's momentum. "I think [demand for] the Wii could slow down to the extent that Nintendo may want to cut the price", he said. "Nintendo has it within its arsenal to do that. The component costs have come down considerably. They used to break even on the Wii, but now they're making a considerable margin."
According to an analyst from respected financial institution, Credit Suisse, the cost of manufacturing the Wii has actually dropped by 45% since it launched. Whether this is due to real drops in manufacturing costs or currency fluctuation is unclear, however.
The official line from Nintendo has, however, remained unwavering. "Why would we?" said Nintendo of America's president, Reggie Fils-Aime, when asked about a Wii price cut recently.
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