| Scisca said:
I'm not sure which way these numbers might go, but so far it is what it is. Either way Wii U is not doing great, contrary to what you were claiming in this thread. And it doesn't matter if it outsold XO or not, it's on a steep decline after the MK8 bumb and nothing is fixed. The price always influences demand, it's one of basic laws of economy. Obviously, the console needs to show value, at which Wii U struggles greatly due to it being so much inferior to competition and abandoned by 3rd parties, but the price is the second most important factor in this equation. The bottom line is - Wii U will never start selling at a higher clip at this price. Never. Nintendo can't pump out a Mario Kart every month. It needs to get cheaper and more than $50 cheaper to really start selling. A bigger cut worked wonders for 3DS and somehow didn't lower anyones confidence. I really believe that no Nintendo hardware can cost more than $250. |
1) This is true, but the Wii U is still doing better than it was before. The Xbone on the other hand is also on the decline.
2) Price influences demand, but it doesn't hold demand. There will be a bump in sales and then those sales will diminish. That's how supply and demand works. There are two factors in controlling demand for a product. You either a) increase the value of the product or b) decrease the price. Decreasing the price is risky because it can't hold demand by itself. However, increasing value stimulates demand. Therefore, a price drop wouldn't be necessary. Plus, Nintendo can continue to make a profit. Money is what Nintendo needs to earn and not market share.
3) Once again, the price has little to do with it. The 3DS had one price drop to stimulate demand. The Wii U also had a price drop. You are demanding there be another one without understanding what the consequences are. The previous price drop for the Wii U stimulated demand for only a month or two. Then demand went down. It got a small spike due to the holiday, but then sales plummeted. This is how you know the price cut didn't stimulate demand enough. Now, Nintendo needs to do something else. They need to increase the value of their product. Cutting the price again would do nothing but hurt Nintendo's margins. The same happened with the Xbone. The price dropped by $100 dollars, but it did little to stimulate demand. That's because people don't see the value in the product.
Look... People are willing to spend more on jewelry than they would on a PS4. The reason is because jewelry holds a much higher value. Same applies to cars and trucks. Those vehicles hold a higher value than the PS4, because people can see what a car can do over what a PS4 can do. People cannot see the value of the Wii U over what the PS4 can do. That is the problem. If Nintendo went on a buying binge and bought every 3rd party developer in Japan that they could afford, the value of Nintendo's products would increase. People would be more interested in the Wii U because now it has the support of every developer in Japan.
You are willing to spend $20,000 dollars on a car, but you are not willing to spend $20,000 on a PS4. People will spend $1,000 on a wedding ring, but they will not spend that on a PS4. This is a very easy to understand concept. You believe Nintendo hardware shouldn't ever cost more than $250 because YOU, and you only, do not find the value in their products. However, if Nintendo were to release a high-tech smart phone or sophisticated tablet for $300, you'd buy it. Admit it. At that stage, the value of that product would increase - even by YOUR OWN standards. It's all about adding value.
