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Forums - Sales - Why no Wii price cut could be worse for Microsoft and Sony

Naum on 13 September 2009

The 360 elite costs 14$ less the the Wii here in Sweden



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GianCarmen on 13 September 2009

I have said it before, but I believe that Nintendo will introduce colors and maybe a bundle or two for the Holidays, and no price cut. But who knows I could be wrong.



Senlis on 13 September 2009
RolStoppable said:

Some points:

1) Yes, the 360 Arcade is already cheaper than the Wii, that's why I was talking about the most expensive SKU dropping in price in the OP. And yes, the current PSP is cheaper than the DSi (worldwide I think) and Sony's reaction to this is a new PSP model that is priced higher than the DSi.

2) Imagine a situation where an average guy without any special bias towards a particular company (Nintendo, Microsoft or Sony) walks into the store and looks at the various consoles. After seeing the price tags he might ask the clerk why the Wii is still $250 while the HD consoles dropped so much in price and he remembers that a PS3 originally used to cost something like $500. What's the clerk going to say in this situation? "Well, people still buy the Wii at that price." That sends the message that the Wii is better value for money, because it didn't drop in price even once.

3) Don't think that it's impossible that the Wii maintains its current price. The DS managed to do it, because of games and it has no direct competitor for the same values. Why drop the price if you can keep the value of the product high (or even increase it) with new software when there's no other product that poses a threat? The Wii is in a very similar situation.

4) Natal and the Sony wand won't make the 360 and PS3 real direct competitors, because there's more to the Wii than just motion controls. After several years on the market each console has manifested a certain image that can't be changed so easily. Even if you think that Natal and the Sony wand make the 360 and PS3 competitive, there's still the problem that Microsoft and Sony will only have a handful of games while the Wii has already hundreds. Plus, it's doubtful how serious Microsoft and Sony are about their motion controls and if they are going to implement them in their major games like Nintendo did.

5) Once again, the basic problem Microsoft and Sony would face when the Wii doesn't drop in price is how they would continue to position their consoles as superior products in the market place. Further price cuts of the HD consoles could bring them into Gamecube territory where the perceived value of the system diminishes more and more.

@#5

I remember when the GC was dirt cheap.  People thought the console was inferior because it was so cheap, when in reality it was as, if not more, powerful that the XBOX.




 

killeryoshis on 13 September 2009

I always thought that reputation is powerful



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Asriel on 13 September 2009

I think a percieved loss of value would be worse for Microsoft and Sony. I think it's also a reason why Nintendo are wary of cutting the price of the Wii-in mass market terms, it's been cheaply priced since launch, so any cut making it even cheaper could be read as the Wii being less valuable and therefore less desirable.

That being said, I think it's unlikely we'll see further significant price cuts from Sony or Microsoft for a year at least. Perhaps they'll bundle their motion controls in as standard, to try and increase the value of the system. Bundling is a strategy I expect Nintendo to try before they cut the price of the Wii. I think a NSMB Wii bundle is most likely, but other than that, it's difficult to say. Wii Sports Resort (with M+) and Wii Fit Plus (balance board) bundles are also likely sometime next year.



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Aion on 13 September 2009

Yeah i think that Ms should make a handheld to compete with ds and psp.
Yeah a wii price drop should happen.



 

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