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drudaddy said:
slimeattack said:

Next year the PS3 will be priced at $299 which will make it compete with Nintendo.

 Not if the wii is $199 or lower by then

 

Even if the Wii is still $249 next year, and PS3 drops down to $199, Wii will still sell more. Just like the extra features, the focus on technology and the traditional games haven't helped PS3 or 360, neither will a lower price. To put it simply, a lower price will not make Wii Sports, Wii Fit or Mario Kart Wii run on a PS3. Nintendo's advantage with Wii is their ability to continually make these new game experiences which have wide appeal and no competition.

 

I guess what I was trying to say in my OP is that if price wars erupted this generation (so as to take the PS2 out of it), Nintendo has much more room to drop its price than Sony and Microsoft.

People point to the Xbox 360's recent price drop of the Arcade model to below the Wii in Japan and America. However, that same move in Europe did not seem to make much of a difference.

But those are opposite points. Sure, Nintendo could win a hypothetical price war. But there will be no price war, and in fact, Nintendo's ability to add value instead of dropping price is the very reason Wii is selling so well already. Iwata has basically said outright that Nintendo believes a business model that relies on price drops is broken. So how could "more room to drop price" be their big advantage?



"[Our former customers] are unable to find software which they WANT to play."
"The way to solve this problem lies in how to communicate what kind of games [they CAN play]."

Satoru Iwata, Nintendo President. Only slightly paraphrased.