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Forums - Nintendo Discussion - More Wii price cut evidence

famousringo on 14 September 2009
Soundwave said:
Probably worldwide. Nintendo has sales targets they want to hit, and especially with a recession, they need a more cost effective point.

Contrary to popular opinion, $199.99 is actually the "magic price point" where the PS2 sold the majority of its consoles (not $299.99). Expect Wii to do a lot of damage at $199.99.

This is a point which I think needs more attention. It's becoming very obvious that the video game industry isn't as recession-proof as most of us thought it would be. Compelling software might not be enough in this current climate, when price barriers loom larger than they did a couple years ago.



"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event."  — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.

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Demotruk on 14 September 2009
Soundwave said:
Demotruk said:
psrock said:

Nintendo dropping the price of their own console which all first place system have done before, is a terrile idea because?

Because they are conceding that they can't maintain it's value. They'll never be able to charge $250 again, and they'll make a lot less profit both in the short and the long run. The percieved value will also go down, it can never be the phenomenon it once was, and there will always be the belief that you can just wait for the price to come down (which has never been an issue for Wii, less than a year ago it was still selling on e-bay for more than it cost at retail), especially when rumours abound (just look at what that did for PS3 pre price cut).

People love the $199.99 price point. The PS2 sold 70% of its total consoles at the $199.99 price point. 

You guys are seriously over thinking this. 

Do consumers view the iPhone as having less value because Apple dropped its price several times now? What about the PS3? 

Lower price = more consumers, not less. Especially in these tougher economic times for a lot of families, this price cut is absolutely going to be very, very well received. 

iPhone was never a blue ocean product. It's competitors caught on quickly and offer iphone clones, with the same values. The PS3 is as red as they get. They get price cuts because there are substitutes on the market. Wii has no substitute, a falling price is admiting that it's lost value.

I never said anything about more consumers, market share is not the goal, short term or long term, though if you are successful it's a nice outcome.



A game I'm developing with some friends:

www.xnagg.com/zombieasteroids/publish.htm

It is largely a technical exercise but feedback is appreciated.

Demotruk on 14 September 2009
psrock said:
The reason some are against it is because you guys are spoiled. The Wii started with just unbelievable demand for 2 almost three years. I spent a whole year before I saw one in stores. But, demands have died down and its hard to accept. Thus any price drop by Nintendo is seen as a sign that the mighty Wii needs help and some won't accept this reality.

I fully accept that the Wii is in trouble. Where we differ is in the efficacy of the various solutions.



A game I'm developing with some friends:

www.xnagg.com/zombieasteroids/publish.htm

It is largely a technical exercise but feedback is appreciated.

Soundwave on 14 September 2009
famousringo said:
Soundwave said:
Probably worldwide. Nintendo has sales targets they want to hit, and especially with a recession, they need a more cost effective point.

Contrary to popular opinion, $199.99 is actually the "magic price point" where the PS2 sold the majority of its consoles (not $299.99). Expect Wii to do a lot of damage at $199.99.

This is a point which I think needs more attention. It's becoming very obvious that the video game industry isn't as recession-proof as most of us thought it would be. Compelling software might not be enough in this current climate, when price barriers loom larger than they did a couple years ago.

Especially Nintendo. The recession hits them harder because they have a broader kind of consumer base that isn't all just hardcore gamers. 

I think some of those casuals are cutting back/waiting for a price drop, because Oprah/Dr. Phil is telling them every 10 seconds to stop spending or look for bargains these past few months and its taken its toll on consumer spending. 

The 360 hasn't been as affected because they already cut last year and that cheaper price point is paying dividends through this year. Also I believe core gamers are more likely to put aside money for gaming even during tough times. As a matter of fact I think some hardcore gamers actually play more when they're jobless/depressed (lol ... I know people like this) whereas casuals don't. 

I believe the DS would be down too if it weren't for the DSi model buoying its numbers, but since Nintendo is biting on a Wii HD model, that isn't an option for them with the Wii. 



psrock on 14 September 2009
Demotruk said:
psrock said:
The reason some are against it is because you guys are spoiled. The Wii started with just unbelievable demand for 2 almost three years. I spent a whole year before I saw one in stores. But, demands have died down and its hard to accept. Thus any price drop by Nintendo is seen as a sign that the mighty Wii needs help and some won't accept this reality.

I fully accept that the Wii is in trouble. Where we differ is in the efficacy of the various solutions.

The Wii is not in trouble, it's just not in demand like it used to be, and with the other consoles lowering their price, Nintendo needs to put a little more seperation from them. It's a good and it will spike up sales again, and it was probably planned anyway.



 Next Gen 

11/20/09 04:25 makingmusic476 Warning Other (Your avatar is borderline NSFW. Please keep it for as long as possible.)
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Demotruk on 14 September 2009
psrock said:

So what ?

If what you want is to beat out the competition and "win the console war", then so nothing. However if Nintendo had any chance of returning the phenomenon it was, then it would need to fight to maintain it's value and price, and not concede it at when disinterest begins to set in.



A game I'm developing with some friends:

www.xnagg.com/zombieasteroids/publish.htm

It is largely a technical exercise but feedback is appreciated.

Demotruk on 14 September 2009
psrock said:

The Wii is not in trouble, it's just not in demand like it used to be, and with the other consoles lowering their price, Nintendo needs to put a little more seperation from them. It's a good and it will spike up sales again, and it was probably planned anyway.


Falling demand when you don't even have any competition is a sure sign of trouble. They are losing to disinterest. People are less enthusiastic about the Wii, and that remaining enthusiasm is not spreading to others as much.



A game I'm developing with some friends:

www.xnagg.com/zombieasteroids/publish.htm

It is largely a technical exercise but feedback is appreciated.

psrock on 14 September 2009
Demotruk said:
psrock said:

So what ?

If what you want is to beat out the competition and "win the console war", then so nothing. However if Nintendo had any chance of returning the phenomenon it was, then it would need to fight to maintain it's value and price, and not concede it at when disinterest begins to set in.

The phenomenon is dead, let it go. Now is the time to just sit back enjoy. The Wii has already won, it has nothing to proove. It's just sad you want it to be $249 because people will say it lost its value.

 



 Next Gen 

11/20/09 04:25 makingmusic476 Warning Other (Your avatar is borderline NSFW. Please keep it for as long as possible.)
Mr Khan on 14 September 2009
Demotruk said:
Mr Khan said:

Only the Blue Ocean purists believe it's a bad idea to drop it at all. I just believe it's a bad idea to drop it now, pre-holiday season. I (and others) would find a later drop more useful.

 

I mean, it's been rather evident that Nintendo hasn't been following the Blue Ocean as gospel. They've been engaging the whole "Monster Hunter 3" thing with as much gusto as any Red Ocean tactician might, and to be fully Blue Ocean, they would have stopped doing a number of things that still bind them to the old market.

Monster Hunter isn't counter to Blue Ocean. They may have money-hatted a core game, but the Blue Ocean Strategy doesn't involve abandoning your core market, just altering your values. It's not specifically BOS, but it doesn't go against it.

It's an issue of mentality, they're fighting for the Monster Hunter audience in order to directly engage Sony, or so it appears.



Monster Hunter: pissing me off since 2010.

Kenology on 14 September 2009

^ He doesn't think it's smart from a Blue Ocean standpoint.