Analyst: Nintendo needs to cut price of Wii or risk PS3 & Xbox 360 fight back
Nintendo really needs to cut the price of the Wii, especially with Natal and Arc on the way. Discuss.
Only the most rabid and blind Nintendo fanboy could now deny that the star of the Wii which shone so bright for so long is now starting to dim a little. I fondly remember the days when you couldn’t buy a Wii for love nor money. Now? You can get one anywhere, new or used.
And the Wii’s days could be numbered with the planned release of Xbox 360 Natal and PS3 Arc during 2010. Both motion-sensing control systems set to make the Wii remote look like a poorly-conceived kids’ toy.
According to Industry Gamers, Janco Partners analyst Mike Hickey thinks Nintendo needs to act fast on pricing in order to affect the outcome.
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.
Importantly, Nintendo built the majority of their casual mass market oriented installed base from a $250 price point. 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.
I agree with Hickey. The Wii will continue to sell at the current price but there’s a definite feeling that the momentum has been lost. A healthy price cut could be enough to regain that and extend the lead the Wii holds over the PS3 and Xbox 360 before Natal and Arc are launched.
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22 Responses to “Analyst: Nintendo needs to cut price of Wii or risk PS3 & Xbox 360 fight back”
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February 18th, 2010
if the Nintendo does another price on the Wii it will be cheaper than a Nintendo DSi
February 18th, 2010
Nintendo aggressively dropped the price of the GC and it did nothing but destroy that console.
I doubt Nintendo are stupid enough to do that again.
February 18th, 2010
Nintendo aren’t in competition with these consoles. These guys don’t know what they’re talking about.
Wii is for families and for adult parties and drinking games.
February 18th, 2010
I think Nintendo does need to do something to spike interest before Natal and ARC arrive, but I really don’t think a price cut is the answer. What they really need to do is push wii motion plus more and get some good games that really support it. We already know that Red Steel 2 and Zelda will be motion plus exclusive but there needs to be more. I know Natal will sell well but I really have my doubts on how well it will work. People don’t seem to have too much faith in PS3′s motion controls but I think they will be far better for gaming than Natal and the greater competition for Nintendo. The trouble with both systems though is that they are tacked onto consoles that have been out for some time that have no real need for them. They will both also add costs to upgradeing their respective consoles which makes the suggestion of a wii price cut irrelevant.
By the way the wii may have dropped from severe sales domination to moderate domination but I wouldn’t be writing them off yet. Also by the time ARC or Natal begin to get a foot hold in the maketplace Nintendo will be ready to release a new system. Sony and MS should have waited until the next gen. to roll out their versions of motion control. imo
February 18th, 2010
The only thing keeping Nintendo alive is the young children and middle-aged women. AKA Mario and Wii Fit. All they are running on is word-of-mouth that “the Wii is fun” and “the 360 and PS3 will rot your childrens brains”. Nintendo needs to start getting some quality content out. The best-case scenario for us would be for them to become solely a games developer, and make games multiplatform. Of course, that’s not happening, so there’s nothing left for me to see. Nothing to look forward to besides any upcoming Zelda games.
February 18th, 2010
Saber, Don’t forget about middle aged fathers. For a family with younger kids the wii is the way to go. They are the Disney of video games right now. And its interesting you and many others here dis the wii for bad games but then say you think nintendo should stick to just making games. I think there are a lot of closet nintendo fans around this site.
-By the way I hear people so often complain that the the wii caters to children. Why is this a bad thing? As an adult I love the games that challenge me and give me a little escape from stressful days but when did kids get written out of the equation? Anyone here probably grew up playing games or at least being exposed to games as a kid. Would you want to give up those memories? Thank God we have a company like Nintendo who still encourages games for kids. Do you really think sony and microsoft’s libraries of endless FPS are acceptable for younger kids? The wii may not be for everyone but it definately has appeal to a very large segment of the population and as a middle aged father of young children I can’t defend it enough.
February 18th, 2010
OK, I have to slip out of my Mario P.J.’s and go use the wii fit now.
February 18th, 2010
I dont think the 360 or PS3 will ever catch the Wii, as long as Nintendo keep supporting the console.
The Wii is actually pretty good fun. Me and my friends primarily use this when we are wasted, it’s always a good laugh.
February 18th, 2010
I think is the other way around, PS3/360 needs to lower their price and release their motion peripheral with a reasonable price tag bundled with some quality games.
February 18th, 2010
@gamer_thumb
I probably fall into the closet Nintendo fan. I’ve also said in the past that I would like them to become third party.
@Roca,
I really don’t know what they can expect. A peripheral like that to me almost feels like it has to be in the box from the beginning to gain its success and popularity. I agree with Carlb in the opinion that it will be big next gen when all consoles also come with it right from the start.
February 18th, 2010
That´s a nice thought Gamer_Thumb. Games should be for everyone and since PS3 and XBox360 do a great job covering the needs of a core market, this allows Nintendo to explore a expanded market. I personally enjoy the console a lot.
Back to the article: I think the Wii did lose momentum around the second half of 2009. The reason for the price cut was to help restore it. Looks like NSMBW did that better.
Now, I see a problem for Sony and MS. They might steal each other´s thunder because launch dates are closer. Things will get very interesting then.
February 18th, 2010
When it comes to the Wii…I don’t even know what to say…all logic goes out the window…for example…I can say the Wii has no good games…Wii has more total units than sony and ms combined…I can say how bad the graphics are…Wii has more total units than sony and ms combined…Wii is just a gimmick..Wii has more…
The Wii is an anamoly…hence words are useless lol
February 18th, 2010
I’ll buy a Wii when it hits $50. I won’t pay a penny more than that. It’s just not worth it.
February 18th, 2010
I’ll get a Wii when they have a Real Controller and Motion is optional or for exclusive motion games
February 18th, 2010
@ Roca
One thing Sony and MS need to do is take a really good look at what Nintendo has learned with the wii. When it first came out everything was motion this and motion that. Unfortunatly motion controls can sometimes take you out of a game experience. If you look at many of nintendo’s more recent titles they have games that are either motion exclusive, like wii sports resort, or more traditional controled, like Mario Bros. wii. I think the biggest advantage the wii controler has is the IR pointer. This alone has more of an impact on games than the motion controls IMO. This is also one of the reasons I think ARC will impress gamers more than Natal will.
February 18th, 2010
“If you look at many of nintendo’s more recent titles they have games that are either motion exclusive, like wii sports resort, or more traditional controled, like Mario Bros. wii”
thanks for clarifying that for me, I wasnt aware of that. I havent been following the Wii as much as I used to. I was let down when Twilight Princess became too annoying to play with the motion controls, Nintendo should have done what they are doing now. that was mainly the reason why I sold my wii
February 18th, 2010
I have a Wii for the kids but my 8 year old daughter plays LBP or GOW on the PS3 mostly. She is already 1/2 way through GOW. She spends most of her gaming time playing online with friends.
I hate the dam controls on the Wii.
February 18th, 2010
“my 8 year old daughter plays GOW on the PS3 mostly”
classic!
February 18th, 2010
LOL yeah
She loves it.
February 18th, 2010
I made sure she was techy. She had her own PC and Xbox when she was 3. She loved playing sonic and racing games. She also played Spyro a lot the short time I had a PS2.
She even installed her own PC games at 4. LOL Now I can’t get her off them. She makes Anime for Youtube.
February 19th, 2010
Haha, that´s cool! =D
There is something I really like about small children gaming: the high level of attention and comprehension they achieve when they get stuck and ask you for advice. Somehow they turn into a diminute adult, then neither age nor language are communication barriers anymore.
February 19th, 2010
true.
She had to ask me a couple of times what to do in GOW. But other then that she figures it out on her own.