With the launch of Nintendo's new home console, the Wii U set for November the 30th in the UK, and the house of Mario apparently unable by law to specify a price at which the retailers should sell it, the past week has seen a flurry of activity as shops rush to tweak their prices, after having seen what everyone else is planning. Oddly, though, despite Nintendo having remained schtum on the issue of pricing, as soon as the console was announced, pretty much every retailer around the country announced they'd be selling it for the same price - £250 for the Basic model, and £300 for the Premium, which nets you, amongst other things, Nintendo Land, more internal storage, and a 10% discount on downloadable games. According to trade site, MCV, this gives retailers a £45, and £54 margin respectively on the "trade price" for each model (at £204, and £245), or the price at which shops purchase the consoles from Nintendo - meaning it's not the Japanese giants who're to blame for the confusion. Comparing the price in the UK and the US, the picture doesn't look any rosier, as we'll be paying £30 more for the base model compared to the US (where, even adding 20% VAT, the console would cost only £220), and £40 more for the Premium (in the US, taking into account 20% VAT, it'd cost £260) - easily the cost of an extra game to go with the console. Some retailers are edging the price up even higher, with main high street retailer game adding another £10 on top of each of the bundles, pushing prices up to £260 for a Basic model, and £310 for a Premium.
People who bought the last Nintendo console, the 3DS, may remember that a similar confusion happened around the launch then. After announcing a launch date, but no price, we initially had a scrabble amongst retailers to see who could get away with charging the highest price - but eventually, they started to drop. Coming down from a high of £230 to a much more reasonable £199.99 before launch day, the 3DS price eventually levelled itself out, as retailers presumably found that fewer people were placing pre-orders than they'd expected. But not so, it seems, with the Wii U.
GAME's CEO, pictured yesterday, returning home after a busy day at work.
Speaking to the same trade mag, MCV, retailers today encouraged consumers to not hold off on placing their Wii U pre-orders, warning of stock shortages, and demand which meant there was little chance of the Wii U's price coming down to more reasonable levels.
"There was a lot of stock of 3DS, which meant we felt we could go lower on price," one retailer told MCV. "But I don't expect nearly as much Wii U stock. There will be no need for discounting."
Sarah Jasper, of the Hut group, which runs Zavvi, also commented "The price point is in line with all new consoles. This sentiment is shared by our customers. Pre-orders have been strong." That could, of course, be because Zavvi initially had the Wii U down at a more wallet friendly £229.99 for the basic pack, and £279.99 for the Premium, before following other retailer's lead, and whacking the price up to join the status quo.
It should come as no surprise to the public that retailers are keen to encourage people to place a pre-order for the Wii U, no matter what the price - after all, it's their job. But the premium we're expected to pay, over and above the US seems a little bit excessive. It must be especially worrying for Nintendo, as, unable to dictate a price to retailers, they have to simply sit back, and watch as the shops try to see what the public will bear. Whether the public will snap the consoles up for the extra money, or hold off in the hopes of price drops remains to be seen. Make sure you keep checking back though, as we'll be keeping our eye on the price situation as we approach the console's launch, in around nine weeks time!
