Like an epidemic going around, gaming companies are dropping its prices on consoles to either increase competition or to remain alive in the industry. Those are really great reasons to drop prices, besides the fact that it appeals to their audiences. Then we have the Wii, already at $249.99, the cheapest console of the three major power houses besides the XBOX 360 Arcade. Nintendo announced that they too will have a price drop on its system, to $199.99.
It sounds like a great move, Nintendo cuts the price on the Wii, making it more appealing for customers to afford it in the economic stasis which we are living in today. I just pray Nintendo did not pull that move because SONY and Microsoft had price drops on its systems. If I found out that that is the reason why they did it, I am going to have all of Nintendo undergo shock therapy, cranking it to level 11 on the shock scale. We all know Nintendo is number one on the charts; they sold more units in the console and hand held competition. Even with the price drop by SONY and Microsoft, they had a slim chance to being the number one contender of units sold, maybe monthly, but not overall.
Nintendo has to realize that its price drop on the Wii is only going to appeal in its own market, which is families, couples, and groups who never enjoyed the ‘sit down’ type gaming systems. It’s a revolutionary system, where as the PS3 and XBOX 360 still use the traditional method in gaming (not for long), both almost having the same demographics as to whom would buy those systems. The price drop Wii now has is not going to turn ‘sit down’ consoles to the dark side, so to say. They are still going to be loyal fans to their systems.
Ultimately, the effect of the price drop for the Wii will be great; people who wanted to buy a Wii but could not afford it and some newly couples will now help increase the number of units sold and help Nintendo keep its crown as King of Units. But in my opinion, the price drop will have little effect on Microsoft and SONY, since they are in a different league to begin with.