If Koya Tabata, of respected financial institution Credit Suisse, is to be believed, the production cost of the Wii has nearly halved since the console launched.According to the Financial Times, Tabata told investors in a recent note that the cost of making a Wii has dropped by 45% since it was first released back in late 2006.
The FT goes on to report that this gives Nintendo the scope to cut the price of the Wii should it need to stimulate sales. What he does not analyse, however, is whether this cut in cost is due to short term currency fluctuations or solid parts and manufacturing pricing.
That would be nice, wouldn't it? The FT's right, of course. Nintendo does have the scope to cut the price of the Wii. Whether that 45% figure is accurate or not, the cost of manufacturing the Wii will have dropped since launch. However, the message from the upper echelons of Nintendo management suggests a price cut is unlikely.
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