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Forums - Nintendo - Reggie talks about Cafe and Wii price Cut

Well seems like NIntendo knows that they're not going to follow the Wii audience, and they're looking for something else.

Reggie Fils-Aime, President for Nintendo of America, has recently discussed the perfect timing of the Wii’s price drop, and that he believes consumers picking up the company’s new console in 2012 “will look very different” to those that will be purchasing their current console.

“For us this is a very important move,” Fils-Aime explained to MSNBC. “This is only the second price reduction for Wii hardware since we launched back in November 2006. And in the last home console cycle, the leading system at the time sold almost 50 percent of its volume at a price point of $149 or below.”

He continued, “Typically a system peaks in the second year of availability and then gradually declines. Wii was fortunate to have a number of very strong selling years in its 3rd and 4th year of availability. And from our perspective, the curve that we’re on is natural and to be expected but importantly, the sales curve is higher than any other system.”

Fils-Aime also feels that now is the best opportunity for such a price drop, with the summer holidays fast approaching and parents looking to occupy their children whilst they aren’t at school.

“There are a lot of households where kids will be off from school,” he began, “and the parents are either looking for celebratory presents as the children finish the school year or they’re looking for a fun exercise to keep the kids busy and happy during the summer time frame. We think there is a wide range of consumers that are wanting to purchase a Wii and what they have been waiting for is this type of announcement.”

Fils-Aime also touched upon the impending announcement of their successor to the Wii, supposedly codenamed Project Café, discussing his belief that those picking up the new console are the one’s that feel the need to “have the absolute latest hardware.”

“When we launch our new home system sometime in 2012 we think the consumer buying in will look very different than the consumer who’s going to be buying a Wii now,” Fil-Aime claimed. “What we’ve seen in this business it that there are certain consumers who love being first – they have to have the absolute latest hardware – and there are other consumers that are perfectly happy to wait until the game library is much more robust and they have a wider range of options.”
http://www.nintendo-universe.co.uk/2011/05/04/fils-aime-project-cafe-consumers-will-look-very-different-to-those-currently-buying-the-wii/



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alfredofroylan said:


He continued, “Typically a system peaks in the second year of availability and then gradually declines. Wii was fortunate to have a number of very strong selling years in its 3rd and 4th year of availability. And from our perspective, the curve that we’re on is natural and to be expected but importantly, the sales curve is higher than any other system.”


O_o  

hmm ...  yeah, about that.     no.



The Wii should get a boost this Summer.

“When we launch our new home system sometime in 2012 we think the consumer buying in will look very different than the consumer who’s going to be buying a Wii now."

I'm guessing they're going super hardcore when he says "very different".



                                                                                                                                                                                                                                                                   

BoneArk said:

The Wii should get a boost this Summer.

“When we launch our new home system sometime in 2012 we think the consumer buying in will look very different than the consumer who’s going to be buying a Wii now."

I'm guessing they're going super hardcore when he says "very different".

Not necessarily. The type of consumer that buys a console on its first few months and the type of consumer that buys a console on its last few months are very different, even if it was the same console. The former buys many more games, accessories, etc.

I think that's what he mean. Also, his previous sentence: "...his belief that those picking up the new console are the one’s that feel the need to “have the absolute latest hardware.”



No troll is too much for me to handle. I rehabilitate trolls, I train people. I am the Troll Whisperer.

Well Reggies comments about Cafe are not suprising at all. Reggie said similiar things about the 3DS and why Nintendo didn't do a more aggressive ad campaign. With the Wii their was a 500-million dollar ad campaign and Nintendo did everything they could to promote the shit out of it. This worked well at increasing demand but Nintendo couldn't keep up with demand.

With 3DS and Cafe it appears Nintendo is targeting the die hard fans and early adapters first. Not throwing a massive ad campaign behind the hardware till they can meet demand. Honestly I think this is playing with fire but if Nintendo pulls it off it could mean huge sales for Nintendo.

I will be one of those Nintendo fans picking up Cafe day one, I bet Nintendo could meet their projections using just their loyal fanbase and early adopters like they almost did with 3DS. Selling almost their 4-million by the end of the last fiscal year.

I bet Nintendo brings out the big ad guns and appeals to the expanded market base as soon as NGP comes out (For 3DS) and Cafe when the competition announces their hardware. Why increase demand when you don't have the supply. Why advertise the hell out of something when their is no competition.

Nintendo is going to take their time and enjoy the time they have without competition, then when they have enough units manufactured and the competition makes their move, bring out the big guns!



-JC7

"In God We Trust - In Games We Play " - Joel Reimer

 

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kitler53 said:
alfredofroylan said:


He continued, “Typically a system peaks in the second year of availability and then gradually declines. Wii was fortunate to have a number of very strong selling years in its 3rd and 4th year of availability. And from our perspective, the curve that we’re on is natural and to be expected but importantly, the sales curve is higher than any other system.”


O_o  

hmm ...  yeah, about that.     no.


The dude has severe memory issues.

Last 2 gen the gen leader kept increasing its market share as the generation aged, not decreasing it...



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

PS3-Wii gap : 20 millions and going down !

Joelcool7 said:

I will be one of those Nintendo fans picking up Cafe day one, I bet Nintendo could meet their projections using just their loyal fanbase and early adopters like they almost did with 3DS. Selling almost their 4-million by the end of the last fiscal year.

They didn't come close to selling 4 million 3DS systems last fiscal year.  They didn't even manage to ship 4 million.



alfredofroylan said:

 

“When we launch our new home system sometime in 2012 we think the consumer buying in will look very different than the consumer who’s going to be buying a Wii now,” Fil-Aime claimed. 


Do you think he is talking about fat people?



I describe myself as a little dose of toxic masculinity.

Yakuzaice said:
Joelcool7 said:

I will be one of those Nintendo fans picking up Cafe day one, I bet Nintendo could meet their projections using just their loyal fanbase and early adopters like they almost did with 3DS. Selling almost their 4-million by the end of the last fiscal year.

They didn't come close to selling 4 million 3DS systems last fiscal year.  They didn't even manage to ship 4 million.


Nintendo sold 3.6 million 3DS units in its launch month and fiscal year. That is 400,000 units short of the 4-million units. You make it sound as if Nintendo should have sold more then 4-million units in one month. Sure sales right now aren't the best but Nintendo did nearly reach its projections.

Also as I said Nintendo was counting on early adopters and their loyal fanbase for sales. They didn't market the thing worth crap. If they could get those kinds of numbers without any marketing at all then when they turn up the heat and start marketing theirs no telling what they are capable of.

3DS is close to DS sales on a weekly basis and that is not half bad considering the device has no product awareness. I think when Sony launches NGP Nintendo will launch that 500-million dollar marketing campaign and kick some serious butt.

Also according to Reggie Nintendo doesn't want demand to out number supply. So Nintendo is stock piling I bet come this winter Nintendo will be ready to unleash hell on Sony!



-JC7

"In God We Trust - In Games We Play " - Joel Reimer

 

Joelcool7 said:

Nintendo sold 3.6 million 3DS units in its launch month and fiscal year. That is 400,000 units short of the 4-million units. You make it sound as if Nintendo should have sold more then 4-million units in one month. Sure sales right now aren't the best but Nintendo did nearly reach its projections.

Also as I said Nintendo was counting on early adopters and their loyal fanbase for sales. They didn't market the thing worth crap. If they could get those kinds of numbers without any marketing at all then when they turn up the heat and start marketing theirs no telling what they are capable of.

3DS is close to DS sales on a weekly basis and that is not half bad considering the device has no product awareness. I think when Sony launches NGP Nintendo will launch that 500-million dollar marketing campaign and kick some serious butt.

Also according to Reggie Nintendo doesn't want demand to out number supply. So Nintendo is stock piling I bet come this winter Nintendo will be ready to unleash hell on Sony!

You're talking about 'early adopters' and 'loyal fanbase', but then you are only looking at the shipped numbers.  Those people had nothing to do with the shipped numbers (well except Japan where they missed their forecast) because that was the launch shipment.  It had to do with both Nintendo and retailers being overly optimistic.

By Nintendo's own numbers, they show a sell-through of only 1.64 million (not including a handful of countries like Canada I believe), and unless the US April numbers are great, they aren't getting through that first shipment anytime soon. Both Japan and Europe showed a precarious drop after launch.  In Europe it was below the 2010 DS numbers by week two, and was down to the 2011 DS numbers by week 3.  3DS plus DS in week 3 being roughly equal to the 2010 DS numbers.  Just curious, what are you expecting the April-June shipment to be, and what do you think Nintendo expected 6 months ago?

As for Reggie's comment, do you really believe that?  That they are stockpiling for the winter in March?  I'm sure retailers would be thrilled with the idea of having stock rotting on their shelves for half a year.  Reggie's comment was just spin, plain and simple.  Of course they don't want demand to outstrip supply, but they were definitely expecting better sell-through.  If you don't believe me, here are some quotes from their investor briefing.

In reference to Japan
"The initial sales were healthy; however, the sales speed slowed down from the third week after its launch which is not what we had expected for the start-up transition."

The US
"Nintendo 3DS started very well but, on the other hand, did not perform as expected after the second week."

And Europe.
"Nintendo 3DS was launched in late March. The sales were high in the initial week, but sales fell below our expectations after the second week. Nintendo 3DS has not been selling as expected since the second week, and this is not just in the Japanese market but also in the United States and Europe, where no direct impact from the great earthquake has occurred."