One of the things I have long coveted (other than my new obsession, the House of Pain Adidas) is a Nintendo Wii. You see, I am a bit behind on the gaming world, but I like the Wii because I could play golf with Tiger Woods and my (bad) swing. Perhaps I may be able to get a Wii for less than the shoes now, as long as I am not in the U.K..What drew my attention and hopes of a lowered price is this interview with GameStop Corp.'s (NYSE: GME) Senior Vice President of Merchandising, Bob McKenzie. According to McKenzie, it appears that Nintendo of America shouldn't raise the wholesale price of the Wii because the gaming console is finally seeing supply start to match demand. In the U.K. the pound is weakening, so the price needs to be hiked for Nintendo to make a profit. McKenzie believes that the price hike is "a pretty isolated opportunity" for Nintendo.
As for the console finally reaching level with demand, it could be a boon for GME -- just go check out how many people are paying more on eBay -- if a fraction of those eBay Wii searchers go to GME to buy their new Wii, the store could profit. Moreover, with the popularity of Wii Fit (going for $109 a pop at last check) and all the extra controllers and all that fun stuff, a Wii bill can easily surpass $500 for a first buy.
If all of these purchases lead to sales of $2 billion in 2009, the company could enjoy a very profitable year -- as well as GME investors.
The game retailer is enjoying a bit of a push higher as the worldwide economy appears to be rounding the corner (not necessarily my opinion ladies and gents). If the stock can ride a wave of momentum through resistance at the $28 level, we could see the shares of GME get fit, Wii Fit.
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