HappySqurriel on 20 January 2009
| aavidbacon said: I come here to mantain a position I already defended that the wii doesn´t compete with the PS360, just like Hirai said. Apart from everything people defending that position already posted, my point is about price. Everyone saw what happened when x360 drop price just before september, or when Ps3 droped price in 2007. Both consoles exploded in sales. Ps3 managed to sell almost 50 % more than last year and so did x360. But the interesting thing is that when price droped, the other console droped in sales, or didn´t rise as expected, like PS3 this xmas. At the same time, wii broke records in sales everywere, without a price cut. Why? Because it wasn´t affected by the price cuts. The demand for PS360 isn´t affected by the demand of the wii and vice versa. The wii could drop the Price to $149 tomorrow and still wouldn´t affect the HD sales, only the wii sales. The same thing works for a price rise on Wii, wich I could bet wouldn´t even affect wii sales by much(demand is too high). My point is, when price changes of one product don´t affect other product demand, it means they are not competing in the same market. If you have three types of car in one Market and a cut price in car A affects only the sales of A and B, but not C, it means C is another classe of car and is not competing for the same public. This is clearly the case. But I think we have to wait for wii price cut for this "theory" to be proved. |
How do you know that Wii demand hasn't been impacted by the price reductions of the other systems? Up until a couple of months ago the Wii was selling at a rate near to or higher than Nintendo could supply systems ... On top of that, in previous generations price reductions of systems rarely had much of an impact on the market leading console because people tend to fixate on one product that they want and it doesn't matter what another system offers or costs they aren't interested.
