Analyst suggests Wii cuts price to $199

vashivihan · 01-30-2008, 08:19 PM

Quote:

With the Wii being sold out for 14 months straight and still selling like water in the desert, I would think Nintendo executives might be hard-pressed to find a reason to drop the price on the goose that lays golden eggs, but that’s exactly what superstar analyst Michael Pachter, of Wedbush Morgan Securities, suggests they do.

In his opinion, to stay competitive Nintendo should stop bundling-in the cultural phenomenon that is “Wii Sports”, and sell the uber-popular console for a cool $199 dollars. He figures that 80% of new customers will buy a game to go with their Wii’s anyway, and that Nintendo would only lose $10 bucks in process. He says this should help stem the advances of the more grown up HD systems, with their higher tech specs and multimedia capabilities, that are more likely to end up as the center pieces of a families living room, than in the kids playroom.

Additionally, he goes onto say that Nintendo should have nothing to worry about until Wii owners decide to pick up a second system to compliment their Wii’s, and that he expects 3-to-4 million more Wii’s to hit the market worldwide this year with an estimated 1.5 million of those coming to the U.S.. With big-box retailers like Target and Wal-Mart finally keeping some units on store shelves with increasing regularity, this year is shaping up to be just as big as last year.

And then there’s this…

Quote:

“I don’t perceive a big threat [to the Wii] until late 2008, with the impact felt in late 2009. By that time — as I’ve said before, Nintendo will likely combat the perception of “HD video inferiority” by introducing a “Wii-HD” model.”

INTERESTING. LINK

CantGetAWii · 01-30-2008, 08:25 PM

Well once their production ramps up price cut should be done for sure.
Not sure about a "Wii-HD" model, I don't see that happening personally until their next console at least.

261311 · 01-30-2008, 08:28 PM

I think they'll end up cutting it to something below $200, or bundle it with more than just Wii Sports. Once their production lines start running hard I doubt they'll need to keep the price at $250.

Wiinter · 01-30-2008, 08:33 PM

I suggest a different strategy. Wii Fit bundle that still has Wii Sports for $300. It shouldn't be the only thing available, but assuming they ever get around to manufacturing more Wiis (seeing as how they've had two Christmases to gauge demand), that let's them get their system in retail locations others never dared to go. Sports stores, fitness and nutrition locations in the mall, Bed Bath and Beyond...

They didn't take my suggestion about using some of their massive wealth to fund and publish serious hardcore Wii efforts from Western Developers in the mold of Retro, so I won't hold my breath on this one either.

261311 · 01-30-2008, 08:39 PM

Quote:

Originally Posted by Wiinter

I suggest a different strategy. Wii Fit bundle that still has Wii Sports for $300.

Not a bad idea but with $300 price, then they'd only really be saving you the trouble of finding it and buying it... at least include it with no price change of $250 or whatever it currently is now.

Wiinter · 01-30-2008, 08:45 PM

Quote:

Originally Posted by 261311

Not a bad idea but with $300 price, then they'd only really be saving you the trouble of finding it and buying it... at least include it with no price change of $250 or whatever it currently is now.

And $20 (Wii Fit will retail at $70). But the point is not the savings, the point is expanding retail accessibility. Wii Fit is about audience expansion, and you don't want to just wait for the new audience to make their way to a video game section in a store they never go to. You want to put it in front of them. Especially since you've repeatedly given your core audience the finger and you need to count on replacing some of them.

261311 · 01-30-2008, 09:07 PM

I never said selling it in different locations is a bad idea, I was talking about the price. I think fitness lovers will buy the Wii anyways (out of any console) and if they didn't create the mass buy-outs, than Nintendo fans looking for a Wii outside of gaming/ electronic stores would be finding them.

sagema · 01-30-2008, 09:34 PM

They will drop it $100. I think it's $200 in Japan now. It doesn't come packed with Wii Sports. Reminder: The Wii is technically a hyped up Game Cube (No expensive parts), which means there's no reason it can't cost $150 this year.

... Oh right, human greed. Well we can always dream.

Bumble14 · 01-30-2008, 09:52 PM

Stupidest article I've ever read. Big N doesn't need to cut the cost for the rest of the Wii's lifecycle...why? Because the PS3 and 360 will never touch below the $250 mark..plus the thing is selling like hot cakes.

This moron does realize that 70% of the wii owning population is comprised of older people/casual gamers/first time novelty gamers, who only bought they system for Wii sports right?

261311 · 01-30-2008, 10:45 PM

Quote:

Originally Posted by Bumble14

Stupidest article I've ever read. Big N doesn't need to cut the cost for the rest of the Wii's lifecycle...why? Because the PS3 and 360 will never touch below the $250 mark..plus the thing is selling like hot cakes.

This moron does realize that 70% of the wii owning population is comprised of older people/casual gamers/first time novelty gamers, who only bought they system for Wii sports right?

Heavy words there, no need to say them seeing as you just made a fairly stupid post. Everyone said the PS2 and Xbox would never go under the $250 mark but then again, look where they are now? New technology makes everything cheaper in time my friend.

The bonus of the Wii is that it gains new market share and access to the elderly and casual gamers but by no means is 70% (much less 50) fitting that category. A lot of people have the Wii as a primary/ secondary console whereby that secondary target market participates but doesn't own.

solidkirby · 01-30-2008, 10:54 PM

They would be stupid to stop bundling Wii Sports. I can't even begin to think of how that would piss off potential buyers who have yet to pick one up.

wezeles · 01-31-2008, 12:36 AM

Nintendo wont stop bundling games in with US consoles they know the US market needs something to play out of the box, and doesn't want to choose a game. They just want to rush home and play whatever comes with it!

I think they should do what they have done in the past with popular consoles.
If Wii Fit is as big in the States they should make 2 bundles and phase the original out with the newer more popular one...

Example:
Wii Fit same 249.99 price tag as now and then sell the Current Wii sports bundle with a 199.99 price tag. This will help clear out the old stock of Wii sports games and at the same time introduce a "new" phenomenon to the Wii and keep its sales still way above the competitors.

Nintendo has nothing to worry about even if the yearly sales double for ps3 and 360 and the Wii sales drop to half they would still need over a year to topple the Wii at which time a price drop would help... Even if they dont get out the best games right away to boost sales, "which they are" its going to take some time for the other 2 system to catch up...

With this much of a lead it would take many mistakes for them to fall outta number 1 spot... dont forget 360 sales are less then half of the Wii's and just about tied with PS3 when you go on a year by year basis...

gnahc79 · 01-31-2008, 01:01 AM

stay competitive? I don't think Nintendo needs to consider repackaging anything to make a price cut anytime soon. If the PS3 and 360 cuts prices...maybe. By that time (who knows when) it may be already time for the next gen consoles. Also, by that time Nintendo can probably still include Wii Sports for $199 and maybe a Wii Sports + Wii Fit bundle for $250 like 261311 mentioned.

FRuMMaGe · 01-31-2008, 01:56 AM

Quote:

Originally Posted by vashivihan

Analyst suggests Wii cuts price to $199

Haha! You said anal...

Sorry, but this thread was getting far too sophisticated for my liking.

bubs · 01-31-2008, 10:46 PM

Wii doesn't need to do anything, its got good games, more accessories coming out like Wii fit... its fine as it is and worth every $.

Oh 1 other thing... i find it really funny how everybody is from different countries UK/America/Canada/Australia etc and when saying or quoted prices your just saying $ like as if to say $200 is the same amount across the globe...

261311 · 01-31-2008, 10:56 PM

Quote:

Originally Posted by bubs

Oh 1 other thing... i find it really funny how everybody is from different countries UK/America/Canada/Australia etc and when saying or quoted prices your just saying $ like as if to say $200 is the same amount across the globe...

You do realize that a "$" sign symbolizes either USD or CAD right (unless stated otherwise)?

smyth · 01-31-2008, 10:57 PM

Quote:

Originally Posted by bubs

Wii doesn't need to do anything, its got good games, more accessories coming out like Wii fit... its fine as it is and worth every $.

Oh 1 other thing... i find it really funny how everybody is from different countries UK/America/Canada/Australia etc and when saying or quoted prices your just saying $ like as if to say $200 is the same amount across the globe...

i didn't know that they used the $ in the UK, i thought they used that fancy looking "L"...