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Analyst: Wii already overdue for another price drop

Wednesday, 17th February 2010 02:18 GMT By Nathan Grayson

wii

Seems like only yesterday we were scanning Toys ‘R’ Us fliers and picking away furiously at Nintendo’s buttoned lips over a potential Wii price drop. Then – shock – it happened.

But that’s not good enough for Janco Partners analyst Mike Hickey. He thinks that, with Natal and Arc on the way, Nintendo needs stop treading water before its end of the pool gets a little more crowded.

“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” he told Industry Gamers.

“We believe they also need to generate strong hardware sales momentum into their competitors release or face the draconian consumer perception of the Wii having a dramatically reduced entertainment value proposition over a faded technology innovation; Rock Band anyone?”

There’s tons more soothsaying through the link – much of which foretells of dark times ahead for Nintendo. Come on, Nintendo elves! Build the DS2 faster! Time’s running out!

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5 Comments

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  1. Dannybuoy

    It’ll be free with a happy meal pretty soon

    #1 4 years ago
  2. Blerk

    What the bloody hell is this guy on?

    “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”?

    Last time I checked, weren’t Nintendo about fifty gazillion units ahead of both Sony and Microsoft? Which universe is he living in?

    #2 4 years ago
  3. Tonka

    WTF treading water!?

    #3 4 years ago
  4. deftangel

    How “analysts” like this maintain such highly remunerated positions at investment companies I’ve no idea. He’s clearly on drugs, has no idea what “casual” even means and oblivious to what the craic is within the video game console market in 2010.

    It’s been three years worth of this broken record now, what’s it going to be next year?

    #4 4 years ago
  5. PolyGoneWithTheWind

    He’s just trying to drum up business for his company; Janco are very small and he shouldn’t be commenting on Nintendo anyway – they are not Colorado based.

    The end game for Wii though is moving from “casual gaming” to impulse purchase – I think that’s the strategic point he’s trying to make. These guys won’t be happy until a Wii is sub $100 and people are buying it for something to spend 6 hours doing at Thanksgiving, Xmas etc…

    Nintendo have made substantial returns at a higher price-point and continue to do OK now – they won’t play the end-game card until they really have to. Millions of Wii’s sitting in their warehouses, not retailers, collecting dust.

    #5 4 years ago