Nintendo's Wii has been in need of a price cut for some time now, many would argue. But when exactly we'll see that happen remains unknown. However, last night the folks at Engadget reported that a "trusted source" has indicated that Wii will drop to $150 on May 15. The timing (before E3 in June) seems odd, but if it's actually true Nintendo could be readying a new console announcement for E3.
"Most video game companies withhold their biggest announcements until E3 and if Nintendo chooses to announce a Wii price drop before their E3 press conference, they must have something much bigger to announce. There are very few announcements that would eclipse a hardware price cut," EEDAR analyst Jesse Divnich told us.
M2 Research analyst Billy Pidgeon agreed, telling IndustryGamers, "Wii is certainly due for a price cut, which would be good for Nintendo and for retailers. A Q2 price cut announcement would typically be an E3 event, so scheduling a cut before E3 would clear the boards for another, bigger announcement. A new console would be pretty exciting, but it's a lot riskier for a vendor with a large active installed base to launch next generation and keep last generation's base active while the other vendors are still building out. Next generation timing and strategy is going to be interesting."
Michael Pachter of Wedbush Securities, however, cast some serious doubt on the Engadget report. He told us, "There is no way that anyone outside of Nintendo Japan would know about this until print ads have to be submitted for retailers, probably at most three weeks prior to the cut. I don't believe that the source is right.
"With that said, I think a cut in September is likely, unless Microsoft cuts earlier. Nintendo will not lead price cutting, Wii is still selling pretty well (close to 1 million a month), so why cut profits until sales drop below 500,000 a month? I don't see it."
5 Comments
April 13, 2011
I have to say, this generation is getting a bit staid. A new console could really shake things up.
April 13, 2011
@Jayson, Well, I disagree when it comes to 360/PS3. But for the Wii - yes, absolutely.
April 13, 2011
"so why cut profits until sales drop below 500,000 a month? I don't see it."
Is this quote from Pachter? If so, it doesn't really make sense since he's been the loudest voice shouting that Nintendo needs to cut the price of the Wii. Wasn't he making a lot of noise about this a few months ago, or am I mistaken?
April 13, 2011
The time for Nintendo to cut the price on the Wii was last fall. Still, whenever they get to it the effect will be positive. At this, point, though, I doubt a price cut will attract more third-party development. Whenever Nintendo announces a Wii 2 it will be a blow to Wii sales; it would make sense to minimize the time between announcement and shipment for that reason. Announcing at E3 for a holiday release would make sense... if they've lined up strong third-party support. Which seems unlikely, given that nothing has leaked out before now... though perhaps if the Wii 2 is a very basic upgrade (HD output, faster clock speed, maybe more RAM) then it's not like learning a whole new console.
It will be interesting to see if Nintendo announces any compelling new titles for the Wii... that will give some clue to where their energies are focussed.
April 13, 2011
I gotta agree with James. The PS3 and 360 have several years of exciting new titles and features still to come. But the Wii is pretty much dried up at this point. They'll have a few more big first party games but thats about it.