Kupek wrote:Zeus wrote:The 360 may do a $50 drop for each unit and, if the current sales trends stay the same, that will probably force the Wii price drop.
Hmm, maybe not. The Wii is selling ridiculously, ludicrously well at its current price - last I heard it was still pushing 400,000 units a month. Wiis don't sit long on store shelves, even now. If it sells well at that price, then Nintendo may have no reason to drop the price.
Further, even if Nintendo does drop the price, I don't think it would be in response to a PS3 or 360 price drop. The mainstream popularity and sales of the Wii indicate that it's the "casuals" who are buying it. Dropping the price of product A in response to a drop in price of product B on makes sense if, in most consumer's minds, there is a choice between A and B. But I think Nintendo really has succeeded in carving out their own market for the Wii, and for many people who purchase it, the 360 isn't an alternative purchase.
Recent trends are a little different. The Wii dropped from it's 700k+ everything-you-can-make-will-sell rate down to under 400k last month. They're starting to be available everywhere and take many weeks to move off shelves as opposed to the hours of a few months ago. If that trend continues and you see a price drop in the PS3 and maybe the 360 and those start regularly beating the Wii in sales, you will almost assuredly see a price drop in the Wii.
They can talk all they want about not being in the same market but they are. Their numbers all get compared together and that's what the shareholders look at. Compare that with plummeting sales figures and the fact that the Wii will be 3 years old without a drop yet and I think there's a decent chance the trickle down effect will hit the Wii.
Nintendo is changing its tune 'cause it sees the "casual" fad waning which is leading to sales figures dropping in both Japan and US. There's a reason their upcoming launch slate - Wii Sports Resort aside - is all "hardcore". That's where their future growth is since the casuals are starting to lose interest.
It's also "casuals" are the ones who react to a price drop the most. The "hardcores" will pay $300 if the games are good enough because they're gamers and it's an important part of their free time. It's the "mass market" price point - traditionally $199 - that will actually bring in a lot of the casuals who may be on the fence. That's why the PS2 has maintained its sales strength for so long once it hit the $200 and below price tags. It's the casuals who kept it going long after the hardcores bought and played the shit out of it.
So with the Wii they're gonna try a couple of things: release hardcore titles to bring in that crowd and drop the price to keep the casuals interested.