There is no way that Sony and Microsoft can compete with Nintendo on price. It is akin to trying to compete with Wal-Mart on price. That worked so well for Ames (a now defunct discount retailer in the United States).

However, they can compete on features and compete successfully. The movie distribution deals for example mean they bring something more and different to the table. The ability to play movies, be it normal DVDs or BR-DVDs (in the case of the PS3).

The systems also have advantages on graphics and certain types of games. But they might actually not be as strong as selling points to certain audiences. That is where games like Viva Pinata and some XBLA offerings could give the Xbox 360 an edge. Sony has Singstar and Buzz that could allow it to do the same thing.

These extra benefits and game packages will have much more effective way to reach new gamers. Because Nintendo can drop its price whenever it wants to and need to and can go lower than either Microsoft or Sony would ever be able because it already turns a profit on the console.

Thoughts?

Mike from Morgantown

Yes they can.

Unlike Nintendo, Sony and Microsoft have a long history of pricing their hardware at or below manufacturing costs, unlike Nintendo. This allows them to counter price drops rather quickly.

Nintendo has to make a profit from their gaming division to stay afloat. Nintendo nor MS need to. That allows them a much greater advantage on pricing.

Nintendo isn't selling well because of price, it is because they have a new experience for gamers and non-gamers to embrace. Although Nintendo could easily drop their price and still make a profit, they have no need to do so.

Nintendo is making a ton of money on games, Wiiware, VC, controllers...  I think Nintendo could sell the Wii for under $100 and still make money from the system if you count the things I just mentioned.

Microsoft is already competing in price (they are now officially lower), but I know what you mean. Not that they will at any time in the near future, but should they feel threatened they could easily drop the price by at least 50% and likely still make a bit of profit.

Also when it comes to VC games. They already own the rights to the game, and it's already made. They take a screenshot or two, write up a description, and toss it onto a server. Easy million or two.

I think this thread is just stating the obvious

Depends on the game. There are very few games that Nintendo still owns that would lead to robust sales in any sort of meaningful timeframe. They are there, certainly (Earthbound), but far fewer than what has existed.

Nobody can compete with Nintendo on anything this gen

I think it's a given. Nintendo went for innovation of the control scheme instead of advanced and raw gaming power. Nintendo can easily cut cost to $200 a console, maybe even $175 and still have trouble burning through all the $$$ they make. 360 and PS3 are effectively fighting for second so that's where you will find desperation with price drops and other deals.

I remember reading in the lead up to the Wii's release that Nintendo were prepared to sell the console for $99us. I think they're still suprised how well its going and any plans for any price drop, especially one of that magnitude have been shelved indefinately...