Nintendo has confirmed to MCV that it is to increase the trade price of its Wii console for UK retailers, a move that could lead to the console’s price rising on the UK High Street.
However, retail will decide whether the machine’s current 179.99 price point sticks, or whether consumers face paying more for the machine in the future.
MCV understands that retailers are being told that trade prices for Wii will increase by around 16.50, or around 19 including VAT. As a result retailers face making virtually no money on each machine sold if they stick to current pricing.
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,” a Nintendo UK spokesperson told MCV.
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.”
The move puts increasing pressure on UK indies, who will face the choice of swallowing the sharp drop in profit per machine or upping their prices – something that national retailers and supermarkets are unlikely to do.
The move follows similar price hikes from the likes of Apple and Dell.