Nintendo has never bothered to think about a Wii price cut since its launch but as supply is now easily meeting the demand, this could be very well on the cards, suggests analyst Michael Pachter.
“Wii supply has finally exceeded demand… in order to hit its full-year Wii shipment forecast, we expect Nintendo to cut the price of the Wii before [the] holiday, likely to $199.99.”
Even though a price cut looks an easy solution to increase sales, Nintendo’s president reckons it having a temporary effect.
“People often talk about the price cut as if it’s an almighty weapon. The fact of the matter is that what a price cut can do is rather limited. … In the long history of video games, at the time of the price cut we see a momentary hike in sales, but usually that cannot sustain its momentum and it soon comes down to below the price cut level.”
Maybe Nintendo’s strategy will first include to bundle few games, accessories and/or new colors at the same price and then go for a price cut when they’re ready for the launch of Wii’s successor.
[Edge-online via Joystiq]
Good for Nintendo, I believe all of the big 3 should and will do this, the PS3 more so than the other two.