When will the Wii get a price drop?

[Just_Ben]

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. ;)