Citing the sustained depreciation of the pound against the euro, Nintendo has raised the price of the ever-popular Wii console in the UK, from an MSRP of GBP 179.99 to 199.99 meaning that consumers will most likely see a price hike as well, unless retailers are willing to take the giant hit on their profit margins.
"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 in a statement. "The price that they then offer to consumers is, of course, up to the retailers."
"We are only – reluctantly – raising our trade price now to retailers due to unprecedented and sustained depreciation of the pound. This is a problem brought about by extreme currency fluctuations that are a symptom of the global economic situation," added Nintendo.
Don McCabe, managing director of the gaming retailer Chips, spoke out in surprise at the decision and believes the company should have released the console with the GBP 199 price tag from the start.
"It's a first," he mused. "I can't remember any other console that has been launched, been on the market for a couple of years and then gone up in price. It's an absolute first."
"Hindsight is a wonderful thing, but I think Nintendo could have sold all the machines that they have done at the GBP 199 price point, because we've effectively had shortages from day one, pretty much all the way through."
McCabe also noted that retailers will have to up the price of the console: "I don't think any retailer has got the ability to soak up that sort of margin change. I think I saw one story that said the supermarkets wouldn't be passing the price point on but I think they will. I don't think any retailer can take that sort of squeeze."
"We are only – reluctantly – raising our trade price now to retailers due to unprecedented and sustained depreciation of the pound. This is a problem brought about by extreme currency fluctuations that are a symptom of the global economic situation," added Nintendo.
Don McCabe, managing director of the gaming retailer Chips, spoke out in surprise at the decision and believes the company should have released the console with the GBP 199 price tag from the start.
"It's a first," he mused. "I can't remember any other console that has been launched, been on the market for a couple of years and then gone up in price. It's an absolute first."
"Hindsight is a wonderful thing, but I think Nintendo could have sold all the machines that they have done at the GBP 199 price point, because we've effectively had shortages from day one, pretty much all the way through."
McCabe also noted that retailers will have to up the price of the console: "I don't think any retailer has got the ability to soak up that sort of margin change. I think I saw one story that said the supermarkets wouldn't be passing the price point on but I think they will. I don't think any retailer can take that sort of squeeze."
