Current consumer reasons for holding off on the purchase of a Wii

[greenmedic88]

But would a $50 price drop really make that much of a difference?

We did see a solid resurgence of Xbox sales when the Arcade dropped to $199. While many insist that these represent a small minority of the overall consoles being sold, it's really hard to ignore the changes in sale numbers following the drop, which have sustained at a higher overall rate since then.

It's fairly safe to say that there weren't millions of potential buyers waiting for the "magical" price of $299 for 360 Pro systems, meaning a significant chunk of buyers who waited three years into the product cycle to buy likely found the basic entry price too low to pass.

As for a potential price drop on the Wii causing a huge run on sales and subsequent shortages, I'm not convinced at the current max production rates, which are very far from being taxed currently (taking into account low sales this time of year).

I think Nintendo is in a position to continue to let things simply ride in terms of price strategy. Continue to make a decent profit on each unit sold at the current sales rates.

The question is at what point will we see the platform take the next significant step up (if ever) which may be more of a question of at what price point.