Next month will see the release of Wii Sports Resort, follow up to the best selling console game of all time. There has been a decent amount of debate as to what type of hardware sales increases the release should bring to the Wii, which is currently experiencing a period of flat sales. As it's been pointed out, the market for the same expanded audience that Nintendo has successfully captured this generation is significantly larger than the current Wii user base which brings up the question of what are the reasons why these consumers continue to hold off on the purchase of a Wii, and more importantly, what is the impetus that will compel them to buy the console, nearly three years into its life cycle?

1. Price

It is no secret that the Wii has been profitable for Nintendo since day one, due to their decision in hardware architecture to expand upon the previous generation Game Cube, allowing for lowered R&D costs as well as lowered production costs. Despite this, the price was still a very acceptable (for a new platform) $250, making the decision to buy one easier.

Nearly three years later, production has finally matched demand while remaining at the same retail price as its debut; one of the longest stretches of this type in console history.

Is the $250 price what is currently holding the platform back from the next tier of market penetration?

2. Bundles, colors, special editions

It was often predicted that we would see new color choices, software bundles or special editions prior to seeing any sort of overall price drop in the original package. And while color options do provide consumers with the option of matching colors, individual preference, etc. what type of hardware boosts could a new paint job realistically expect to sustain over time, or would it simply be catering to niche markets within the Wii user base?

3. Wii Sports Resort

As the follow up to the best selling console game of all time, some have been predicting that the release of WSR, along with the bundled Motion Plus peripheral could be anything from one of the best software movers of all time, comparable with Wii Play and Wii Fit, to a rebirth/reimagining of the Wii experience.

Realistically, there is little question the game will be a huge seller, but in terms of sustained increases in hardware slaes, things are considerably less clear. The original was essentially a free game, although it was still the reason for many to buy the console in the first place, making WSR an automatic purchase for many.

But what type of sustained hardware sales can realistically be expected once WSR debuts? We will find out the initial bump effect next month.

4. Motion Plus

Tied largely to WSR, but already available at retail along with two M+ enabled EA Sports titles. Numbers aren't out on the number of attachments being sold, relatively easy to estimate based upon the number of units EA moves. It is safe to say at this point that neither game has been a legitimate system seller, despite the use of the extended motion controls of M+.

But these are initial efforts, and the benefits of M+ have yet to be really showcased (see WSR). Future efforts may turn the current minor ripple effect into waves, should the additional abilities fully deliver when it comes to the games.

Opinions?

I don't think it is price - at least not that $50 would make a significant difference. Wii doesn't really have any significant competitors in the extended market at present so price is not a major factor, unless it ever comes below $100.

Same goes for colours etc.

And WSR will probably mostly sell to those already playing WiiSports.

I think there are two things that are holding Wii back:

The first is gamer dislike/hate. WM+ will probably change that, with demonstrably better gaming experiences in FPS, swordplay, sports.

The second is down to compelling content and advertising for the extended market over Christmas. New gamers will likely tend to buy at holiday season rather than during the year, so I wouldn't be all that worried about the relatively low sales right now, but look forward to a massive surge later in the year, with word-of-mouth spreading sales into Jan/Feb.

We have probably not seen all of the holiday lineup yet either.

Actually, flat sales at a production capacity of 26m isn't necessarily a bad thing. It'll probably stay at that level for another 2 years. Doesn't mean anything is doomed.

Even if the sales are lowering that means other consoles like the 360 and ps3 are selling.

Price is a factor, but there is little Nintendo can do about that, for now. There could be too much demand, and then they'd be stuck again.

But would a $50 price drop really make that much of a difference?

We did see a solid resurgence of Xbox sales when the Arcade dropped to $199. While many insist that these represent a small minority of the overall consoles being sold, it's really hard to ignore the changes in sale numbers following the drop, which have sustained at a higher overall rate since then.

It's fairly safe to say that there weren't millions of potential buyers waiting for the "magical" price of $299 for 360 Pro systems, meaning a significant chunk of buyers who waited three years into the product cycle to buy likely found the basic entry price too low to pass.

As for a potential price drop on the Wii causing a huge run on sales and subsequent shortages, I'm not convinced at the current max production rates, which are very far from being taxed currently (taking into account low sales this time of year).

I think Nintendo is in a position to continue to let things simply ride in terms of price strategy. Continue to make a decent profit on each unit sold at the current sales rates.

The question is at what point will we see the platform take the next significant step up (if ever) which may be more of a question of at what price point.

1.
$250 is an awesome launch price. A drop to $199 (or god forbid $149) in 2010 would see christmas 2007 type shortages.

2.
I don't really now here, the products the Wii gets its selling model from (iPod, DS, etc.) all got really good boosts from colors but they are handhelds and are a little different. I know I will purchase a Black Wii (especially if the MH3 bundle comes to the US) to replace my launch day wii (give to my sister) but I could be one of the niche markets you are talking about (my money is just as good though)

3 & 4.
I don't think WSR alone is going to skyrocket Wii weekly sales, there will be a noticable boost and WSR along with Wii Fit + and NSMBWii will kill this christmas making the Wii the hot ticket item again this year in video gaming but most (as in >51%) WSR purchases will be to those who already have a Wii so while this will push some people over the edge it might not be as many as you think (5-6 million is my estimate - but it is purely opinion based)

That part seems a little odd... I mean sure there are some gamers who dislike the console because it doesn't yet have enough appealing games... but many dislikers, and all of those who somehow hate the console are like that because they don't change.... they formed an opinion of the Wii as soon as it launched with Wii Sports, and this was only excacerbated by Wii Fit. Nothing will change their minds.

There is also the problem that of those who would change their opinion, some will not be willing to buy a second console if they already have one.... I mean if someone gave me a PS3 I would probably keep it and buy the few interesting games I miss, but until it's library has as many games I want as the Wiis does AND it is a much lower price I would not buy one with my own money.

To quote Bill Clinton: "It's the economy stupid."

The US and most European countries are seeing their highest unemployment levels in over a decade. Thus, people are a bit concerned about dropping $200 or $300 or $400 for a console and $40-$60 for each game to go with it -- because they don't want to spend money in case they lose their job.

If you have not noticed, spending is down all around. And the Wii had been outselling the PS3 and Xbox 360 until the recent drop in North America (which coincided with the start of summer and a big jump in gasoline prices (30% in two months for me)).

Given this, Nintendo will probably change the bundle for Christmas (adding WSR instead of Wii Sports) if sales stay stagnant. Then it will consider a price drop in Spring 2010.

Mike from Morgantown

im waiting for my Christmas bonus to buy a(nother) Wii or DS. Not sure which I'll get first.

I might get DS first due to Golden Sun Wii. That announcement made me go back and replay the 2nd game (didn't feel like playing both, they are amazing but no time for both)

While doing a WSR bundle makes perfect sense, that will probably depend more upon whether sales flatten than anything else.

If it continues to move units like Wii Play did, there's no reason why they would give it away for free unless they were making an extremely hard push to sell consumers and developers on M+.