Well Bruce hasn't changed his fanboyism since we last heard from him here. Read on for the the least logical thinking since one of our own members decided the Wii would instantly stop selling as soon as GTA4 was released. Then click the link to the original post to see Bruce get pwned by his blog readers. I don't care what console he likes, I just hope no one ever lets this tool run a company. And I would avoid his stock advice like the plague.
http://seekingalpha.com/article/74809-4-reasons-why-wii-ought-to-anticipate-a-price-cut?source=feed
4 Reasons Why Wii Ought to Anticipate a Price Cut
- 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.
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My impression : It's been at the same price, yes. It's also continually sold out. After it sits on shelves for more than an hour or so (like readily available stock not moving), then price drop.
There's room to drop the price: If I can sell a widget for $X, and I can't keep it in stock, why would I cut my profit? I would only do it if leo-j's 'preditcion' came true, and I HAD to cut the price.
Yes once it meets the backlog of demand, you might have to drop the price. If you believe that's coming at the end of the summer...... lol.
Release schedule : N always keeps quiet about it's upcoming hand. Wait until E3. And is he thinking WiiFit isn't going to bring an entire new audience to the table? Or is he just not thinking?
GTAIV: Yeah yeah yeah, just like Halo3, COD4, etc, etc,
Wii looks last gen: This is news?
At a lower price Ninty will sell more Wii's : How? They are sold out.
You get more for your money with a 360 : Bruce does, but 'Others' doesn't think so, at the same price the Wii still wins 2:1
Q32008 : his best bet. My best bet? Bruce eats crow.
Wii Code 3456 7941 4060 2924
