of 2009.
The DS launched in 2004 at a price of $150. It has always sold at a profit and has received one price cut in 2005 to $130. In 2006 it received a much needed overhaul, but no price change. It has been 2.5years since the last price cut on the DS, which was only $20 to begin with, while the PSP has dropped pretty significantly from $250 to $170 after it received its own facelift.
Why didn’t the DS drop the price to in a similar fashion as the PSP? After all, last gen whenever anyone dropped their price; PS2, Xbox, and/or GC, the others followed. Simple, Nintendo realized they didn’t need to. Nintendo is a company and like any respectable company, is out for profit. They knew that even though the PSP went from being over $100 more expensive to only $40, the DS massive lead was unchanged and its own sales pattern has largely been unaffected.
So far, 360 has dropped its price by $20-50 and the PS3 has dropped by $100. Yet, the Wii’s sales lead has continued to grow and has been completely unaffected. In this same view, why should Nintendo drop its price any time soon? It’s still selling very strongly in Japan and Others. Above that, it’s still sold out in NA.
If you were Nintendo leadership, would you even be considering a price cut anytime soon? I wouldn’t. I would be fully aware that both MS and Sony will probably drop their prices anywhere form $20-50 this year, however, I would realize that like the PSP’s massive price reduction and the big price cuts last year, the Wii will not be affected. It will continue to outsell the competition and widen its lead. Sure, there will be some big games released that will cause small spikes in their sales, but largely the Wii will continue to be dominant every month.
I don’t expect a Wii price until summer of 2009 at the earliest. By then, 360 Arcade will already be cheaper than the Wii and the Premium version will probably be $270 or so and the PS3 will be as low as $300 at best. Then we will probably see the Wii drop from $250 to $200 to maybe match 360 Arcade's price.