I think that multiple SKUs have done more harm than good, but I can see the practicality from a business standpoint. So for next gen systems, Xbox ?, Nintendo ?, and PS4, respectively, do you see a change in business strategy, yes or no?
I think that multiple SKUs have done more harm than good, but I can see the practicality from a business standpoint. So for next gen systems, Xbox ?, Nintendo ?, and PS4, respectively, do you see a change in business strategy, yes or no?
No, I think that multiple SKU's are here to stay. BTW, hasn't there been some news about another Wii sku coming out or perhaps a price cut? If anybody knows about wii news, I'm all ears.
Why would there be a price cut if they can't even meet demand at this price? The laws of economics suggest a price RISE is necessary (but won't happen), not a cut.
ferret1603 said: Why would there be a price cut if they can't even meet demand at this price? The laws of economics suggest a price RISE is necessary (but won't happen), not a cut. |
b/c there have been a number of manufacturing improvements leading to cheaper production prices even when you ignore the move to smaller chips. Also, there has long been that rather odd principle of computers and many other consumer electronics getting cheaper and cheaper, smaller and smaller every year.
Nintendo are a business. Businesses maximise profit. If their costs have fallen that leads to greater profit. Cutting the price would lower their profit which makes no business sense. It would also increase demand which they can't even meet at the current price. Take a look an supply and demand diagrams in an economics textbook, it'll explain how it works better than I can in words on here.
Actually, the Wikipedia entry tells you everything you need to know: http://en.wikipedia.org/wiki/Supply_and_demand
ferret1603 said: Actually, the Wikipedia entry tells you enverything you need to know: http://en.wikipedia.org/wiki/Supply_and_demand |
Ok, so cheaper chips, less expensive ways of making components, etc have nothing to do with costs, but rather, only supply and demand will. Yeaaaaah
Microsoft and Sony have both caught tones of flak for the multiple-SKU system. I think they'll both settle on one unified design in the next generation.
But people need to keep in mind the complexities of keeping one SKU. The Wii had a low price point from the begining so they didn't need to take microsofts/sony's routue of making a cheaper SKU to apeal to casual/poorer gamers.
To an extent you have no control over how many SKU's you want to release unless you don't care about being profitable , Sony hasn't been as popular as they hoped so a multiple SKU was neccasery to reduce their losses.
A multiple SKU strategy is more of a reaction to changes in the market more than anything.