Worldwide sellouts and piles of money haven’t stopped Nintendo president Reggie Fils-Aime from finding something to whine about. Fils-Aime told Reuters today he disapproves of retailers bundling the Nintendo Wii with games, removing the price advantage Nintendo has over its competitors.
Fils-Aime has a point. Gamestop sells the Wii with two to five games and a second set of controllers, making the $250 console cost almost $600 before shipping - more expensive than the Xbox 360 and PS3.
“We think it masks some of the price advantage we have versus our competition and, frankly, the consumer should decide what they want,” Fils-Aime said.
Now I agree bundles can be frustrating, but what’s it Nintendo’s business how retailers push the Wii. Nintendo can’t even keep Wiis in the stores. The second the Wiis are sold, they appear on eBay for 50 to 100 percent retail. So is it so wrong for the retailer to include the software in order to maximize its own profitability.
If Gamestop had 500 Wiis in every store, they wouldn’t bundle them because they couldn’t force consumers to stomach the games they don’t want. Those consumers would just go to Best Buy for bundle-less Wiis. But since supply is limited, retailers are finding ways to artificially mark-up the price, but at the same time offering more to the customer. Of course, if you don’t want the games, you can just spend the same $600 on a stand-alone Wii on eBay.
Nintendo just keeps to understand the basics of supply and demand. Their console may be cheaper, but that doesn’t define it’s value. Capitalism does that.













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