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Forums - Nintendo Discussion - When will the Wii get a price drop?

Sky Render on 24 August 2008

Funny, I happen to be reading the chapter in Blue Ocean Strategy on pricing. I quote:

"To secure a strong revenue stream for your offering, you must set the right strategic price. This step ensures that buyers not only will want to buy your offering but also will have a compelling ability to pay for it. Many companies take a reverse course, first testing the waters of a new product or service by targeting novelty-seeking, price-insensitive customers at the launch of a new business idea; only over time do they drop prices to attract mainstream buyers. It is increasingly important, however, to know from the start what price will quickly capture the mass of target buyers."

The short explanation of this is that the Wii is already priced to sell to the masses, and thus will not get a price drop until somebody authentically forces their hand. This will not be by the 360 or PS3 going sub-$250, but by a compelling product coming out with the same values as the Wii for the same or a lower price.



Sky Render - Sanity is for the weak.

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DeotoxSlayer on 24 August 2008
Snesboy said:
mike_intellivision said:
Snesboy said:
This Christmas. Wii consoles are becoming more readily available. Just the other day I saw like 10 at Walmart.

Xbox 360 is seeing a price cut to $200 (I believe the Arcade bundle or something) and Nintendo will have to compete. Why buy a Wii when the 360 is 50 dollars cheaper?

I expect the Wii's price to be cut to $199.95 this Christmas.

 

SNESBoy

Where are you located?

The reason I am asking is I think that Wal-Mart has sent too many Wiis to more rural areas.

I saw 5 or 6 in Kingwood, WV last week and there are reports of over a dozen in Wayne, WV (and having been there forever).

Mike from Morgantown

Who also last month saw a dozen Wavebirds in Moorefield, WV.

 

 

I live in a community (Canton, MI) about 30 minutes outside of Detroit and about 20 minutes away from Ann Arbor, MI.

Isn't that the same Canton that Stephen Colbert made fun of and then apologized to because the Mayor of canton Complained?

 



vanguardian1 on 25 August 2008

Canton Michigan? *waves hello to Snesboy from Davison, Michigan*

I saw we'll only see a price drop if they want to keep up the momentum they have captured (not this year though), and even then only when there has been a noticeable dip in sales.



Nobody is crazy enough to accuse me of being sane.

Just_Ben on 25 August 2008
Sky Render said:
Funny, I happen to be reading the chapter in Blue Ocean Strategy on pricing. I quote:

"To secure a strong revenue stream for your offering, you must set the right strategic price. This step ensures that buyers not only will want to buy your offering but also will have a compelling ability to pay for it. Many companies take a reverse course, first testing the waters of a new product or service by targeting novelty-seeking, price-insensitive customers at the launch of a new business idea; only over time do they drop prices to attract mainstream buyers. It is increasingly important, however, to know from the start what price will quickly capture the mass of target buyers."

The short explanation of this is that the Wii is already priced to sell to the masses, and thus will not get a price drop until somebody authentically forces their hand. This will not be by the 360 or PS3 going sub-$250, but by a compelling product coming out with the same values as the Wii for the same or a lower price.

I guess you did not read the book the theory comes from. ;)

 



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bobbo19 on 25 August 2008

USA are so lucky, over here in the UK the price for a wii is £180, that equates to $360.



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pichu_pichu on 25 August 2008

Maybe by X-mas '09



.jayderyu on 25 August 2008

If Nintendo truly wants to follow the new market path it's heading down. There will NEVER BE A PRICE CUT for the Wii. As it stands the market path isn't about price cuts. It's about coming out with a slightly better itteration at either the same price or slightly cheaper to reflect the price in technology and current market.

Think of the Wii potentially as a iPod. How long to they carry the old versions around before they are replaced with the previous selling price replacement. This is the potential path for the Wii.

Instead of seeing Wii, Wii2, Wii3 or Nintendo Entertainment System, Super NES, Ninenter 64, Game Cube. We could instead see a shift for the Wii naming convention. These names are complete hogwash make up
Wii Two(HD)
Wii Horizon(head tracking)
Wii Sky(?)
Wii Aurora(Internal projector)
Wii Blue(Blue Ray storage)
Wii Dream(mind controlled games)
......

Each new itteration of the Wii will have new technology and name to reflect the new tech interaction feature. However tech will increase, but price will remain the same relative to the economic consumer. So a price shift will occur depending on the economy capability, needs blah blah blah. This shift however could go up or down.



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KZ2 on 25 August 2008

I will hold out on a Wii when the price drops to $100 US.

Three or four year wait for a Wii is fine with me.

I believe the price of the Wii will retail for $100 in 2012.



ultimate_123 on 25 August 2008

If the competitors drop their prices sharply then I expect a quick price drop from nintendo.



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ookaze on 25 August 2008

It's funny how the Wii is only competing with the others when we talk about price.
But as soon as you talk about marketshare, graphics, ... the Wii is no competition anymore.
Wii won't be affected by the current competitors price drops. Some people are too thick headed to understand it yet, but they will have to eventually, or live forever in their fantasy world.
The XB360 is lower priced than the Wii since months in Europe, and it still didn't affected the Wii at all.
Even if a competitor came with a Wii killer, Nintendo would have to fight on value, not on price. Like the DS, the Wii will probably not see any price cut.
The only thing that would cause a Wii price drop, is because Nintendo initially wanted to sell the Wii at $200. So you may see a price drop to $200, but IMHO it won't be until 2012.
Even when the DS was outsold by the PSP in Japan, you didn't see any price cut.
Wii will be the same, if not worse.

Before asking the question of "When will the Wii get a price drop?", people should ask themselves the question: "What is the job of a price cut for the Wii?". Once you understand that, the next question is: "Why would the Wii need a price drop now?". Notice the "now".
Asking "When will the Wii get a price drop?" assumes that we already know it needs one. I don't think so!



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