So Nintendo will start selling the Wii at $199 for North America starting November 27th. The amazing thing is not that Nintendo finally is giving folks a price cut. It’s that they still make money on the system sales. The “standard” thing to do is to sell your system as a loss leader and make up the money in game license fees. Nintendo not only sells their systems for profit, they sell more of them than their competitors.
PS3 24.6 million as of August 5, 2009
XBOX360 31 million as of August 27, 2009
Wii 52.62 million as of June 2009.
Well Nintendo is looking to further system sales. Not that they needed a price cut to do this but it definitely won’t hurt.
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