Would Nintendo be doomed if they don't make a price cut.
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How much do you think a $200-250 price will help Wii U? | |||
Massive Boost over weeks | 14 | 14.29% | |
Substantial Boost | 29 | 29.59% | |
Moderate Boost | 42 | 42.86% | |
Little or no effect | 13 | 13.27% | |
Total: | 98 |
Would Nintendo be doomed if they don't make a price cut.
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slab_of_bacon said: Would Nintendo be doomed if they don't make a price cut. |
No. Because they could survive single handidly from the handheld market.
PREDICTIONS FOR END OF 2015: (Made Jan 1st 2015)
PS4 - 34M - XB1 - 21m - WII U -12M
sc94597 said:
Please enlighten me. You had a good argument there! Wait nevermind, I don't take economic lessons from someone who can't distinguish economic value from market price. Edit: For those who are interested, to illustrate my point with a graph.
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I agree that value is intrinsic to the consumer and not manufacturing cost (see the launch for the PS3)- Even if an individual consumer is willing to pay more for a Wii U( IF they had to) than an X box One-, they would not do so becausae THEY WOULD NOT NEED TO- if a person who preferred a Wii U could either buy an X box One or a Wi U for $200 they would buy the X box one if for no other reason than to sell it for a profit and put it toward a Wii U (granted if money was not an issue for the individual they may not go to the trouble for convinience reasons or the value of their own time- but most people (that prefered a Wii U) would take the $100-$200 profit they could get for the X box and essentially get an even beter value on their Wii U
The consumer ultimatly sets the value and no mass product (if any product) is priced at the exact terminal value all current purhcasers are willing to pay at that time - that would be impossible to accomplish - individually what we personally value a product is not meaningful to anone else with rare exception (unless your dealing w a con artist )
Either way- I now give you an A+ for effort due to your nice grapgh
kristianity77 said: Ok, well seeing as everyone is cutting me down about saying the pricecut won't make much of a difference beyond the first few weeks, I'll take a back seat then. When the price cut does roll around and the Wii U sells by the bucketloads for months on end, I'll come back on and apologise to you all. But I wouldn't be holding my breath :) |
A price cut will help- how much it will help all depends on how much they cut the price and how much percieved life remains for the Wii U/how much more software support will it get- IMO it will take a big price cut to really move inventory unless they have some BIG positive surprises re games and future suppport
Nintendo should anounce a pricetag of 199$ when they anounce their new system, because that anouncement alone might hurt wii u sales even more.
people might think "I waited this long I might as well wait for NX since Wii U wont have support much longer" so a price of 199$ might be more tempting to that crowd who waits for a system to be under 200.
Note: Also Value can be objective if you only take into account manufacturing and distribuition costs. That said I have no idea which one costs more between XOne and Wii U.
I would say no. Nintendo accepted Wii U's fate a long time ago. Why lose money over 1/1,5 million more LTD sales?
I ponder if the Wii U will ever get a real price cut and not some bundling combination.
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Dunban67 said:
I agree that value is intrinsic to the consumer and not manufacturing cost (see the launch for the PS3)- Even if an individual consumer is willing to pay more for a Wii U( IF they had to) than an X box One-, they would not do so becausae THEY WOULD NOT NEED TO- if a person who preferred a Wii U could either buy an X box One or a Wi U for $200 they would buy the X box one if for no other reason than to sell it for a profit and put it toward a Wii U (granted if money was not an issue for the individual they may not go to the trouble for convinience reasons or the value of their own time- but most people (that prefered a Wii U) would take the $100-$200 profit they could get for the X box and essentially get an even beter value on their Wii U The consumer ultimatly sets the value and no mass product (if any product) is priced at the exact terminal value all current purhcasers are willing to pay at that time - that would be impossible to accomplish - individually what we personally value a product is not meaningful to anone else with rare exception (unless your dealing w a con artist ) Either way- I now give you an A+ for effort due to your nice grapgh |
The assumption made is that the market price is the same for the XBO and the Wii U. If both the Wii U and XBO had $200 market prices (decided by Microsoft/Nintendo) the original comment I quoted said that Nintendo should not assume that the Wii U will have an equivalent value (it is less valuable) and thus should drop its price. Nobody can sell an XBO for more than a Wii U in this situation unless there is a shortage of XBO's, because Microsoft themselves are selling it for $200. So if I were only willing to buy a Wii U and I had no interest in XBO (because, for example, I have a Gaming PC which plays XBO's best games) then it doesn't matter that the XBO is $200 and has better hardware, I want a Wii U for its unique games. Hence, the correct phrase to use to describe the original posters dillema is "greater quantity demanded" not "more valuable." At $300 the XBO might have more people who choose to value it at said price so that the demand is greater than the Wii U's. At $200 the Wii U might have more people who value it at said price and are willing to purchase it than XBO. Thus, the XBO is not more valuable, nor is the Wii U (unless you contextualize it by a demographic), it has more total quantity demanded.
Value is price and time dependent, and based on the perception and preferences of the consumer(s) the product targets.
edit: My point is that lower prices can bring in consumers who weren't evaluating any consoles at the higher prices. And higher prices can remove consumers who were evaluating at the lower prices.
rutea7 said: Note: Also Value can be objective if you only take into account manufacturing and distribuition costs. That said I have no idea which one costs more between XOne and Wii U. |
The cost theory of value is an outdated and less useful way to think of value. It was replaced with the marginal theory of value/subjective theory of value in the 1870's during the marginal revolution. All mainstream economics utilized the marginal theory to explain value over the cost theory. An example of a situation in which the cost theory of value does not explain: "both paintings cost the same to produce and require the same amount of labor, but one has a higher market price than the other."
http://en.wikipedia.org/wiki/Cost-of-production_theory_of_value
vs.
http://en.wikipedia.org/wiki/Marginalism
I'm sure everyone will say yes there should be one, but people will say that until the console is free lol. I personally think a small price cut should be made because other console prices are coming down and closing to the Wii U's price so Nintendo needs to compete and make sure that gap doesn't close up. God knows what Nintendo is thinking, I'm not worried and you can find Wii U's here for stupidly cheap prices anyway.
Stefan.De.Machtige said: I would say no. Nintendo accepted Wii U's fate a long time ago. Why lose money over 1/1,5 million more LTD sales? |
Your math is quite wrong if that's what you think. Wii U will get a price cut eventually, nintendo won't lose money and it will mean far more than 1.5m ltd sales.