Source

So our old friend Bruce has a new article. I suggest you all read it. I commented to it as well. Just wow, this guy is so biased toward HD consoles. Article below.

"It is looking more and more like Nintendo (NTDOY.PK) may have no option to make the Wii cheaper at retail, despite what Satoru Iwata says. Here’s why:

* It has been at the same price for a long time now, during which it has become a lot cheaper to manufacture, especially with the volumes being churned out. Nintendo has been making a profit in every unit from the beginning, so there is plenty of room to drop the price.
* The company is ramping up production to 25 million units a year. Initially these will just meet the backlog of demand, but once that is done it will need to use the price mechanism to shift them.
* Nintendo's release schedule is looking very weak. Right now we have Super Smash Bros, Brawl, Mario Kart and Wii Fit. Then nothing mega and lots of shovel ware. Compare that with the PS3 and 360.
* GTA IV. This is going to transform the balance in the market strongly in favour of the HD consoles. The Wii is going to look increasingly last gen.
* To make the most money out of the Wii back catalogue of games, Nintendo needs as many platforms out there as possible. At a lower price it will sell more Wiis and milk it on the software.
* The Microsoft Xbox 360 price cuts now make the Wii look very expensive. You get a whole lot more for your money with the 360.

So when is this going to happen? Q3 of 2008 is my best bet. But it could be a little later, depending on what the market tells Nintendo."

Bruce must be doing this for hits. He can't be this naive, can he?

I find it weird he thinks GTA4 will make the wii look outdated. GTA4 really doesn't look that great compared to other HD games coming out... and ones already out.

I'm getting double duty out of this graph!

@ Superchunk

I beat you to it! I made the first comment on Seeking Alpha. Except I was trying to be as polite as I could. "Tread softly for you tread on Bruce's dreams."

If you go to his own site, he brings up the same old same old "anecdotal evidence of Wiis gathering dust" as proof that the Wii's price will be cut. Which doesn't make sense even if it was true.

And graphs don't lie after all.

Ah, Leo-j would be proud.

@Botong

Welcome to VGC! Where S's become Z's and the world is better off for it.

I use to think that Bruce was some hip 25 year old douche that thought he could only shit gold but after seeing this:



his idiocy is suddenly starting to become more and more clear. He's the 40+ guy that's trying to stay hip but really doesn't know what the Hell he's talking about.

And of course he still thinks controversy means more hits which means more respect.

 ha, funny. BTW, welcome to VGC. 

I just want to quote myself from my response on that site. I think some of you may like it.

"People have to realize that games like this sell to the minority 18-25 males who have proclaimed themselves as 'real gamers' while the rest of the world who bought PS2's in mass and are now buying Wii's continue to buy Mario Kart and Mario and Sonic at the Olympic Games."

Please add this text to the original post so we don't have to give him hits:

It is looking more and more like Nintendo (NTDOY.PK) may have no option to make the Wii cheaper at retail, despite what Satoru Iwata says. Here’s why:

* It has been at the same price for a long time now, during which it has become a lot cheaper to manufacture, especially with the volumes being churned out. Nintendo has been making a profit in every unit from the beginning, so there is plenty of room to drop the price.
* The company is ramping up production to 25 million units a year. Initially these will just meet the backlog of demand, but once that is done it will need to use the price mechanism to shift them.
* Nintendo's release schedule is looking very weak. Right now we have Super Smash Bros, Brawl, Mario Kart and Wii Fit. Then nothing mega and lots of shovel ware. Compare that with the PS3 and 360.
* GTA IV. This is going to transform the balance in the market strongly in favour of the HD consoles. The Wii is going to look increasingly last gen.
* To make the most money out of the Wii back catalogue of games, Nintendo needs as many platforms out there as possible. At a lower price it will sell more Wiis and milk it on the software.
* The Microsoft Xbox 360 price cuts now make the Wii look very expensive. You get a whole lot more for your money with the 360.

So when is this going to happen? Q3 of 2008 is my best bet. But it could be a little later, depending on what the market tells Nintendo.