Avinash_Tyagi said: ^That's still not a good reason to release a new Wii, you'd still lose sales, and profits, even in two years, the Wii will still likely be outselling its competition by a good margin, and making big profits, the idea of releasing a new Wii and sacrificing those profits and sales is foolish, all you'll be doing is angering consumers and cutting into your profit margins, for no worthwhile gain. People don't care about HD graphics, as they've shown in the sales of the Wii over the HD consoles. And Nintendo said that their next console will have physical media Your argument is terribly flawed |
Keep in mind this is supposed to be a discussiong of Nintendo releasing a new or upgraded Wii console in 2 years and not now.
I'm not sure what you mean by lose sales and profits. The Wii will continue to sell... making a new console does not stop the producing of the Wii or selling the Wii. Also I think you're saying that if there is a new console people will buy the new console instead of the Wii. But the Wii already had a price cut, and will likely see another price cut again within the next 2 years. These price cuts already significantly reduced the profit margins. This loss is already more than introducing another console that will have a much higher profit margin.
Also, there was a prediction that Blu-ray would hit the mass market next year, as well as the fact that all TVs currently on sale are HD. Eventually all TVs in peoples homes will be replaced by HD tvs. The price of those TVs will be cheaper making them accessible to everyone. In order to capitalize on new consumers with HD tvs, creating an HD option for the Wii provides another avenue to make profit. Eventually the Wii console will have have peak penetration, creating an upgrade option creates a way of generating profit. A Wii HD is also an option for the people who do prefer having an HD console.
Nintendo would also be considering SONY's and Microsofts decisions as well. While SONY's motion sensor will likely not effect the Wii, Natal has the potential to hurt the Wii's lifetime sales. If and when the mass market consumers switch to HD, a Natal X360 would be a more compelling option than a old Wii. At the same SONY and MS have their engineering teams working on new hardware.
Nintedo also has teams of engineers who are likely already working on the next Wii.
Also, which consumers would be angry by an HD Wii? Consumers did not get angry with the released of the DSi, or Iphone 3G or 4G. New models has become a part of electronics industry. If consumers do get angry, Nintendo will have a large enough marketing budget to change the minds of the casual users in the market.
It seems as though you believe that the Wii will sell at the same rate forever because people like the Wii now. If you don't agree, what do you think Nintendos plans are? Also, if they don't release a Wii in 2 years, is it 3 or 5 or 20?
Nintendo might have said their next console will have physical media, but the industry wants digital distribution and it's just a matter of time.