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'Wii needs price drop'


ipaul

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Janco Partners analyst Mike Hickey thinks Nintendo needs to cut the price of the Wii immediately if it wants to avoid “continued market weakness†throughout the year.

 

“We acknowledge that a traditional hardware cycle would now be nearing completion, leaving further market growth dependent on continued and aggressive hardware price cuts, software price cuts, hardware extensions and an economic lift,†he said in a research note.

 

“We believe Nintendo needs to cut the price of their console from $200 to $150 immediately, as they should establish as meaningful of an installed base as possible before the Natal and Arc are introduced. We believe they also need to generate strong hardware sales momentum into their competitors release or face the draconian consumer perception of the Wii having a dramatically reduced entertainment value proposition over a faded technology innovation.â€

 

Hickey continued: “We remain optimistic for near term PS3 and 360 market growth opportunities, vis-à-vis an emerging secondary casual market cycle, as accessory innovations potentially target an established Nintendo casual market. We expect continued market weakness through ’10 for Nintendo related products, as the Wii cycle fades meaningfully and the DS platform faces considerable competition from Apple related mobile gaming devices. We recognize new hardware from Nintendo is on the horizon.â€

 

The analyst expects a “new casual game market†to emerge with the release of Arc and Natal, which could be highly beneficial for not just Microsoft and Sony, but also for third party software developers.

 

“We expect a potential up-migration from a portion of Nintendo’s Wii market, as many new gaming console households chose to upscale their game entertainment experience, enjoy a broader array of multi-media options and experience “the new†casual gaming opportunities. We expect 3rd party publishers could benefit significantly over the emerging casual cycle, as their prior experience at the casual market was often tortuous from Nintendo’s software domination.â€

 

What do people think of this? I have to say if the price of the Wii was lowered to £100-£120, I would consider getting one again. Personally I agree with it and I don't see the Wii carrying on much longer without a significant price drop.

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I haven't followed the console pricing that closely seeing as I already have one, but I think in the UK it actually went up in price, no? Maybe it dropped again, lol.

 

Oh yeah, I remember that. What happened afterwards though was that they made a new, official Wii Sports + Wii Sports Resort pack for £180. Retailers also typically threw in two decent games, such as Mario Kart, Mario Strikers etc.

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Oh yeah, I remember that. What happened afterwards though was that they made a new, official Wii Sports + Wii Sports Resort pack for £180. Retailers also typically threw in two decent games, such as Mario Kart, Mario Strikers etc.

 

In other word it's a great value bundle. Anyone who'd want a Wii will surely rather buy a bundle with good value like this. Especially a Black one if they desire.

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I agree, I think this needs to happen before Natal and Sony's wand come out!

Not really; most Xbox and PS3 owners couldn't give a shit about motion controls. In fact, heavy focus on that now is what drove many previous Nintendo loyalists to the other two consoles. It's all in the gaaames.

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When I bought my Wii I cared about Motion Controls. Don't get me wrong, I still love them (Metroid Prime Trilogy with Motion Controls is z0mg amazing) but at this stage, I'm not going to swap just because the competition has motion controls. Right now, I've got enough stuff I'm waiting for to not really care for controls, and more for the games which will utilize them.

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"Janco Partners analyst Mike Hickey thinks Nintendo needs to cut the price of the Wii immediately if it wants to avoid “continued market weakness†throughout the year."

 

If by "continued market weakness" you mean total market dominance.

 

Last week's worldwide hardware sales:

 

Wii - 318,516

DS - 308,774

PS3 - 171,131

360 - 147,850

PSP - 121,179

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