| RolStoppable said: $300 would be a huge gamble. While it's true that Nintendo could initially sell the handheld at that price and it would still sell out, it's highly probable that sales would stall pretty soon after the launch period, forcing Nintendo to drop the price within the first year of availability. Quick price drops devalue products, because consumers expect further price cuts in the not to distant future. More people holding out obviously results in lower sales. But most importantly, what Pachter is forgetting about is that every $50 less spent on the hardware itself can potentially go to software and that's where the real money is. |
Agree with this. Patcher is out of his mind. How will it be better for investors if Nintendo sells this at a higher price, but fewer people buy in the long run? Not only will more people buying it at a cheaper price probably equal the same revenue HW-wise, but it also means WAY more revenue SW-wise.
Then you have to think about the PSP2 releasing later this year (most likely). If Nintendo price at $299 or $349, they would probably end up being the exact same price as the PSP2. This would cause people to really stop and think about which handheld they will be getting. Having a lower price, even if it ends up only being a $50 difference, will still help Nintendo.
