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Forums - Nintendo - Let's talk about the possibility of a Wii price cut.

HappySqurriel said:

First off, I understand the fiscal year Nintendo but the shorter term you're looking at sales for the more unreliable your predictions are going to be ...

Beyond that, we can argue endlessly over how "big" of an impact certain games will have, but I do always find it interesting that every game released on the Wii can't move hardware because it is a sequel to a game that has already been released and yet no one makes those claims when it comes to Modern Warfare 2, Bioshock 2, Halo ODST, and (pretty much) any other sequel released to the HD consoles.

"Nintendo" doesn't (really) hold many shares in the company, and if they need money they would tap into the unusually large cash reserves they have as a company. Now, you might see a short term dip in Nintendo's share price following a change in their fiscal forecast for hardware units sold as short term traders sell their shares or short the company; but long term investers are still going to be very pleased with Nintendo's performance because they will probably still be very close to their profit projections for the year. Anyways ... regardless of the number of ways I point out how Nintendo is in a very unusual position for a company their size that they can make decisions based on a longer term horizon because short term share price changes are meaningless to them, I think you will just ignore them and treat Nintendo like a heavily indebted start-up.

This is one of the weakest responses to an argument I've seen from you.  You basically ignored trestres' sales projections which made up the majority of his point to focus on the very minor note about share price.

I was enjoying the thread until this post.  How disappointing.

Anyway, I don't anticipate a pricecut from Nintendo.  Microsoft and Sony like their bundles/pricecuts while Nintendo likes its multiple colors.  I say that to say this:  It's more likely we'll see different flavors of Nintendo's offerings in the future than a price cut.  As a side note, I think I read somewhere that the Black Wii is coming to areas outside of Japan which would reinforce this point.



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If they finally give us new colours, a pricecut won't be needed



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I think a price cut is unlikely. Nintendo is more likely to continue to instill consumer confidence in the $250 price point by adding value to the deal. Maybe pack in WSR, M+, a thrid party game. I also think nintendo will take the oppurtunity to introduce new colors.

I also really appreciate Trestres comments. He knows what he's talking about and people should listen. Nintendo may be outselling both Xbox360 and PS3. The may be raking in alot of money. BUT! They are falling short of their predictions and forecasts. Investors and shareholders have a vested interest in those numbers and by falling short they lose confidence. This causes a tightening of cash flow for nintendo which hurts long term. That's the reason the Wii is a success. The NGC may have trialed the PS2 in marketshare...but the cash flow nintendo had was much greater than SCE which allowed nintendo to spend the ungodly amount of money in R&D and marketing that has led to the WIi's success.



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