More Wii price cut evidence

[Demotruk]

Soundwave said:

Demotruk said:

psrock said:

Nintendo dropping the price of their own console which all first place system have done before, is a terrile idea because?

Because they are conceding that they can't maintain it's value. They'll never be able to charge $250 again, and they'll make a lot less profit both in the short and the long run. The percieved value will also go down, it can never be the phenomenon it once was, and there will always be the belief that you can just wait for the price to come down (which has never been an issue for Wii, less than a year ago it was still selling on e-bay for more than it cost at retail), especially when rumours abound (just look at what that did for PS3 pre price cut).

People love the $199.99 price point. The PS2 sold 70% of its total consoles at the $199.99 price point. 

You guys are seriously over thinking this. 

Do consumers view the iPhone as having less value because Apple dropped its price several times now? What about the PS3? 

Lower price = more consumers, not less. Especially in these tougher economic times for a lot of families, this price cut is absolutely going to be very, very well received. 

iPhone was never a blue ocean product. It's competitors caught on quickly and offer iphone clones, with the same values. The PS3 is as red as they get. They get price cuts because there are substitutes on the market. Wii has no substitute, a falling price is admiting that it's lost value.

I never said anything about more consumers, market share is not the goal, short term or long term, though if you are successful it's a nice outcome.