nintendo it's not like sony.
sony cut the price of the ps2 even if they have no competition.
nintendo only way to drop the price its the profits slowing down and that price cut at the long boot will give huge profits.
| binary solo said: I don't see how games in franchises that have already driven a lot of hardware sales will substantially increase baseline Wii sales. WSR didn't do it, Wii Fit II won't do it, NSMB probably won't have a lasting impact on sales either. With PS3 there have probably been hu8ndreds of thousands, if not millions, of people saying to themselves "I'll get a PS3 when it comes down in price". A few, but not as many, might have been saying the same thing about 360 (well the HDD versions at least). Who is really saying they are waiting on Wii to get a price cut before they buy? And at $199 is that really the level at which those who are waiting for a Wii price cut will buy? My buying trigger for a Wii is the current PS2 price, same as my buying trigger for 360. OTOH Wii doesn't need the sort of market rehabilitation that PS3 needed, so a move which boosts baseline sales by 10-15% or so is about all it needs. A $50 price cut might do the trick. The other consideration is whether the Wii can drop in price by much with Nintendo sticking to it's strategy of selling the HW at a profit. A common jibe at Wii is that it is a re-packaged Gamecube wit motion control. If that is more or less the case it means Wii does not stand to benefit as much from the falling cost of technology, particularly like PS3 does. Most of Wii's tech is probably at a stable price, with only the motion control tech having much room to move. Evidence suggesting not much scope for movement while continuing to sell for a profit is in the UK price increase. Does this mean a $199 Wii is a break even price, or even a small loss per console? I dunno. Of course as the cost of PS2 production goes so should the cost of Wii production if it largely uses suped-up last gen technology. I don't know about a $50 price cut for lifting HW sales substantially. A $100 cut however... |
Ummm....no, there's a reason why Wii has seen its sales depress and its software, let me show you what I mean, last year the Wii was selling more software each week than it is right now, and had a robust set of games selling over 100K week after week, Wii fit, Wii sports, Wii Play, Mario Kart Wii, however this year Wii Fit is barely selling over 100K, last year it was around 200K, while Mario Kart, which last year at this time was selling over 100k has dropped off below 100K as has Wii Play which is below 50K a week. So you could say that WSR is actually keeping Wii sales up at this point, NSMB and Wii Fit plus will give Wii a huge software boost and yes they'll move hardware as well.
Predictions:Sales of Wii Fit will surpass the combined sales of the Grand Theft Auto franchiseLifetime sales of Wii will surpass the combined sales of the entire Playstation family of consoles by 12/31/2015 Wii hardware sales will surpass the total hardware sales of the PS2 by 12/31/2010 Wii will have 50% marketshare or more by the end of 2008 (I was wrong!! It was a little over 48% only)Wii will surpass 45 Million in lifetime sales by the end of 2008 (I was wrong!! Nintendo Financials showed it fell slightly short of 45 million shipped by end of 2008)Wii will surpass 80 Million in lifetime sales by the end of 2009 (I was wrong!! Wii didn't even get to 70 Million)
Why would Nintendo leave that kind of money on the table? By cutting the price BEFORE the holiday? Is Patcher mad? Once all the commotion about PS3 slim comes back down to earth, the reality will creep back into the situation. Nintendo has owned the Holidays and this year will be no different.
As Avinash has pointed out it is the Software side where Nintendo lost momentum. Software is a far more powerful driver of hardware than price is...remember that.
Bet between Slimbeast and Arius Dion about Wii sales 2009:
If the Wii sells less than 20 million in 2009 (as defined by VGC sales between week ending 3d Jan 2009 to week ending 4th Jan 2010) Slimebeast wins and get to control Arius Dion's sig for 1 month.
If the Wii sells more than 20 million in 2009 (as defined above) Arius Dion wins and gets to control Slimebeast's sig for 1 month.
Well it was able to take on a $200 360 so obviously not that imperative. And we could even see PS3 Slim and $300 pricetag hype die off and dwindle just like the previous pricedrops and 360's current one.
Nothing is set in stone. But I think what we need to notice is, it's quite possible that the Wii drops YoY has nothing to do with competitive pricing by the competition. I mean if that were the case wouldn't Wii have dropped late 2008 instead of March and April of this year.
It's quite possible price may not be the dominant issue affecting Wii. And Nintendo needs to consider all this before they drop the price because doing it prematurely before it's potential greatest effect would be a waste.
I still think a $50 pricedrop would be nice for this holiday season especially outside of America where it is needed more. Just something to show the competition that you aren't going to let them get any kind of edge. That or introduce new incentives to buy the console like they do constantly with the DS. I think Nintendo is willing to do something along those lines and they'll announce it at their October conference. As I've said numerous times... Nintendo knows their sales are down and they know their competition is being extremely competitive with pricing... I doubt they are going to just sit back and take it.
| Arius Dion said: Why would Nintendo leave that kind of money on the table? By cutting the price BEFORE the holiday? Is Patcher mad? Once all the commotion about PS3 slim comes back down to earth, the reality will creep back into the situation. Nintendo has owned the Holidays and this year will be no different. As Avinash has pointed out it is the Software side where Nintendo lost momentum. Software is a far more powerful driver of hardware than price is...remember that. |
Right now Fiscal Year over Fiscal year Nintendo is 2.5 million units behind its target, so it's going to have to do a lot of ownage to catch up ( especially as Q1 2009 was crazy good and it's doubtfull Q1 2010 will be anywhere as good).
PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !
PS3-Wii gap : 20 millions and going down !
Just IMHO but $50 is not going to make that much impact. I think that if they price drop Wii it should go to $150 without Wii Sports.
PROUD MEMBER OF THE PSP RPG FAN CLUB
This time Pachter may be right....1st time in his life?
CURRENTLY PLAYING: Xenoblade (Wii), Super mario 3D land (3DS), Guild Wars (PC)
I don't think it will happen. I agree with the economic argument that a price drop means less profits, its as simple as that. Although i want a price drop, and i want it primarily because i think the Wii and its controls should be in as many homes as possible BEFORE Natal and Sony wand launches, i just don't think its as profitable so they won't do it.
“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.
Pachter said this ? oh.
This wont happen - confirmed.
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