Strong Yen could see lack of Wii bargains this holiday season in U.S.
Analysts think that due to the continuing decline of the U.S. dollar and the 13-year high for the Japanese Yen, you won't be seeing too many hot deals on Nintendo's Wii this holiday season. With the Yen being so high, it drives up the cost of Japanese goods for U.S. retailers. And, seeing as how the U.S. economy has been in such bad shape all year, merchants have discounted their goods to offset that fall to a point where they can't afford to lower prices to attract customers any more.Wii Fit, one of the items analysts see as being a must-have this season, could be most affected. With the profit margin on it so small (same goes for the Wii console itself), retailers can't afford to cut prices. One positive thing to come out of this, however, is that the Euro has been on a decline, as well. This means that Nintendo should be shipping more to the U.S., whereas in the past, Nintendo focused on Europe first.
Reader Comments (Page 1 of 1)
Mr Khan @ Oct 24th 2008 4:07PM
Clarify: Small profit margin for the retailers or for Nintendo themselves? By now Nintendo should've lowered production costs to the point where they're making bank per console
David Hinkle @ Oct 24th 2008 4:17PM
Retailers.
Mr Khan @ Oct 24th 2008 4:47PM
That's what i thought, for some reason it didn't seem clear, though
Bowser the Baptist @ Oct 25th 2008 7:12AM
A sliding Euro is positive for who?
alejo0121 @ Oct 27th 2008 11:59AM
U mean weak dollar, the US Dollar has dropped its value in almost every currency (even Colombian Peso)