With the British pound continuing to depreciate, Nintendo has announced that they will be increasing the price they offer the Nintendo Wii to UK retailers, who could pass the increase on to consumers.
While the recommended retail price of the Nintendo Wii in the United Kingdom will remain at £179.99, Nintendo is increasing the price they charge retailers to stock the console by £18-20.
"Due to the severe and continuing depreciation of the pound, we are, unfortunately, having to raise our trade price to UK retailers of Wii hardware," said the company. "The price that they then offer to consumers is, of course, up to the retailers."
Video game consoles have traditionally been very low profit margin items, with retailers relying on sales of software or bundled items to increase their margins. Nintendo has left it up to the retailers whether or not they raise the price of the console accordingly. Now retailers have a choice: raises the price to raise their margins, possibly alienating customers, or sucking up the lost profit and bravely soldiering on.
I suppose Nintendo can hardly be blamed for adjusting in the face of the global economic situation, but they could have taken a bit of the pressure off of the retailers by hiking the retail price accordingly. I guess we all have to do what we have to do to survive in these rough times.
Wii price to rise for UK trade [GamesIndustry.biz]