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Is a Nintendo Wii Price Cut Necessary?

Nintendo's best-selling Wii console may be dropping its price by the end of September, according to rumors. Video game Web site Kotaku published a blurry snapshot of a Toys R Us flier advertising a $50 cut in the console's price -- down to $200 from $250. Given that Microsoft's Xbox 360 and Sony's PlayStation 3 both underwent reductions in price, the move could be read as a reactionary step, and a way to stay competitive in an increasingly neck-and-neck console sales race.

The bundle contains Wii Sports--the most popular Wii title (no big surprise; the current console comes packaged with it anyway). That means the supposed price reduction isn't just a barebones release of the Wii sans game.

But is the price cut necessary?

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Ninji2898d ago

People were complaining that the PSPGo's price was $249 when the PS3 Slim is $299 and they said that the PSPGo should get a price cut. Now people are complaining that the Wii IS getting a price cut? WTF? Of course the Wii should get a price cut otherwise you could just get a PS3 for $50 more.

ThanatosDMC2898d ago

Exactly! It's probably to try to stay competitive against the 800lb gorilla in the room, PS3, since it can only do EVERYTHING.

EvilTwin2898d ago (Edited 2898d ago )

This holiday season marks the Wii's third year on the market.

Three years with no price cut of any kind is pretty darn good. You can't ask for much more than that.

I wasn't sure if Nintendo would do this, but really, they have no reason NOT to. We're coming out of a recession, the holiday season will be here very soon, their competitors slashed their prices, and Big N has turned a profit on every console sold for three years running.

For consumers, this is awesome. Do the math:

Wii ($199) + 360 Arcade ($199) + PS3 Slim ($299) = $697

Original price of PS3 = $599

You can now own all three consoles for a measly $98 more than the initial price of the PS3.
That. Is. AWESOME.

Gr812898d ago

It doesn't matter what PS3 and 360 do. Nintendo has differentiated itself that most consumers that are interested in a Wii aren't going to say "Hey I can get a PS3 or 360 for just 50$ more!" They want a Wii and nothing PS3 or 360 offers will change that.

It's not that a price cut is bad for the Wii or Nintendo, its just that the timing seems very off. It is still the top selling console month in and month out. It even sold more in August than it did in July according the NPD. Holiday season would still belong to Nintendo any way without a price cut.

The smart business move would be to wait until after the holidays to cut it..But me personally, I don't think the price cut is anything but retailer specific. There was another ad for the DSi to receive a price cut too..That doesn't make sense either.

EvilTwin2898d ago (Edited 2898d ago )

I'm not sure about holiday sales. I think there were/are a chunk of gamers who wanted a PS3, but could not justify the price. It's possible that Sony could do very, very well this fall/winter.

Nintendo wants to cater to the casual crowd, but they also want to hold on to core gamers (and the cheaper price helps there). Plus, the math isn't too shabby. If a $50 cut gives maybe 50,000 more sales...

150,000 consoles at $250 = $37,500,000
200,000 consoles at $200 = $40,000,000

Big N has been laughing all the way to the bank this whole gen. They won't cut the price for a huge surge like the PS3 got. But they could improve their month-to-month numbers, and that matters when the whole industry is trying to shake off a recession.

Vizion262898d ago

I think it's a smart business move for Nintendo.

There is absolutely no way Nintendo can meet their sales projections without a price drop (or perhaps having other bundles). Nintendo should push as many Wiis as they can as fast as they can. Why? More Wiis sold is correlated with more Wii software and accessories sold which equals more profit for Nintendo. Also Nintendo would make the Wii more appealing to develop for when Nintendo totally dominates this Christmas. I don't think anyone likes price cuts more than publishers... except consumers of course.