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Nintendo, Sony face pressure to cut prices amid slump

NINTENDO Co. and Sony Corp., the two largest makers of game consoles, are facing mounting pressure to cut prices after sales of the motion-sensing Wii fell for the first time and PlayStation 3 shipments tumbled to a two-year low.

Sony chief executive officer Howard Stringer and Nintendo president Satoru Iwata have spurned calls by game publishers and retailers to cut prices as the global recession drives down consumer spending. The stronger yen is also eroding earnings at Japanese electronics makers, making them less competitive relative to overseas rivals such as Samsung Electronics Co. "Sony and Nintendo need to cut prices for the PlayStation and the Wii or those products won't sell," said Mitsushige Akino, who oversees the equivalent of $631 million at Tokyo-based Ichiyoshi Investment Management Co. "Investors are fearful consumers will cut spending even further."

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businessmirror.com.ph
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Blaze9293048d ago

I highly doubt Nintendo is facing ANY pressure. Come holiday time again, the DS and Wii will sky rocket once more.

-Mezzo-3048d ago

according to be their momentum is breaking down thus they have a pressure on them which only can be released with a price cut. this should have been the second Wii price cut but they were too greedy.

N4g_null3048d ago

What is funny is only investors need momentum... this is business not physics. It seems investors and stock brokers are trying to put pressure on non-american manufactures. Bean counters are starting to look like voodoo practicers to me now. Like nintendo said they need new games and they are currently just working on said games.

Price is and was not a barrier, if you can afford 250 and you really want a Wii then you have bigger problems and you won't even be getting a Wii at $99. That is what these guys do not understand.

It could be possible that the people just don't have jobs to even buy a wii in some demographics. Yet things are showing signs of turning around. On top of this the system is still selling way above the others and at PS2 rates still. With out any real help from 3rd right now.

The holidays should be fine yet 2010 is going to put the Wii back way up there sales numbers wise.

These investor do not understand video games is more like the music and movie business than the manufacturing business. It takes great talent and great content and great fun to drive sales.

kesvalk3048d ago

well, look at movien then, crappy movie after crappy movie, i don't even go to the theather anymore... music is a tad better, but not that much...

everything is crappy in this damn generation, i blame the EMOs...

N4g_null3048d ago

[email protected] You blame EMOs huh hell they are all in the industry now but they like to make realistic games... the EMO movement was a problem but was it? People are less unified I think or maybe it people that judge too harshly?

You know to be a good writer or creative you have to adjust to other people rather than some vision with in your self.

To me EMOs are the new rebells but they don't have any thing to fight against so they just seem to close them selves off. Too much of one thing is never good and it makes you boring some times.

Gaming is driven by artist and programmers and some times those people are the same person... gaming is not driven by fans or momentum... When I say fan I mean fan boys yet games are driven buy th market and who buys them. It is much easy to get praise but harder to get paid.

+ Show (1) more replyLast reply 3048d ago
darthv723048d ago

would make another killer xmas sales record by dropping the price by $50 and pack in sports resort/wmp in place of the old wii sports.

Sony has to many rumors about this and that but in the end there will be some adjustments to make the investors happy (as well as gamers).

MS could drop another $50 here or there or maybe even upgrade the arcade at no extra cost with std hdd. they have lots of 20gb's laying around. They had to go somewhere when the 60's came out.

It will be an interesting xmas season.

EvilTwin3048d ago

If we're in the middle of the slump with an economy currently beginning to show signs of life, and the holidays are on the horizon...it makes little sense to cut prices NOW. It gives a three-month window before people will start shopping for Christmas and buying consoles, anyway.