Did the price cut really helps the PS3 and the Wii? Or its just temporary?

[richardhutnik]

puffy said:

yushire said:

You must read my last post before this one, Nintendo Wii must outsell or even more their monthly sales last year for the pricecut to be worth it. if not, why even bother with losing potential profit with a 250 dollar console to slash the price at  200?

Business doesn't work that way, there is a certain amount of people that will buy your product at $250. There's a certain number that will buy at $199 etc.. Nintendo obviously weighed up the amount of people that would buy this holiday for $250 and it wasn't enough. It's about momentum in the console business and having a lower amount of sales through the holiday would probably have caused a future price cut to $199 to have a smaller impact.

Trust me, you can't just say 'it has to outsell last year to be worth it' because there are many other factors to consider with a pricing strategy.

The idea is to move your product costwise downward, as soon as you can, so that you reach a larger audience of potential buyers, who then can buy more software and so on.  You seek to do this as profitably as ppossible