Big N Radio

Wednesday, May 31, 2006

Wii - $250 or lower...

In the past, Nintendo has said that the Wii would be $300 or less, but last week they anounced that the system would now be $250 or less. Many had speculated that the Wii would launch for $200 or $150. The increase of $50 may not sound like too much for some of us, but Nintendo is trying to attract new customers with the Wii. If the system is only $50 cheaper than the core Xbox 360 package, it may be difficult for consumers to choose which path to take for the next gen. At $250, I don't think that people who have never played games before will pick it up.

Why would Nintendo even anounce that the system would be $250 or lower? Many speculated that the system would launch at $200 or even $150, and although the price of $250 was not confirmed, it looks like $200 or lower is out. If the Wii is priced at $250 at launch it will most likely include several things, while if the system launched at let's say $150, it would be only the console and the controller. At $250 it is much more likely that we will see a game packed in and maybe even an extra controller and an SD card. If it launches at $230 maybe it will only include the console, the controller, and a game(Wii sports?).

From a business standpoint, this anouncement makes plenty of sense. 99% of the people who purchase the system right at launch will be the hardcore, and hardcore gamers would be willing to pay a little extra for a brand new system. Even though Nintendo said they are aiming to expand the number of people who play video games, it will take time to market the system, and make people aware of the new style of gameplay. By the time the system starts making some noise and getting people interested, the hardcore will already have their systems and bundle. Then Nintendo will have their chance to lower the price and sell the Wii for $200 or maybe even $150, with only the console and the controller.

This is only one possibility though. Nintendo may be following the path set by Apple, Microsoft, and Sony by offering 2 versions of the system: one to appeal to the hardcore, and one to appeal to new gamers. In this case, they have one box set at $250, and it will include several things that the hardcore gamer would be interested in, such as an extra controller, a game, and a memory card. The other box would be set at $150 dollars, and would include the console and a controller. The latter is the package that the new consumer would most likely choose.

Either way, this is all speculation. The bottom line is that if there is a more expensive system, you better believe that it will include much more than what a cheaper package would include and that Nintendo has a huge job in trying to attract new customers to the industry. They will certaintly have a hard time convincing people who have never played or payed attention to a video game to go to their local EB and shell out $200 for a new system.

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