Analyst: Wii already overdue for another price drop

By Nathan Grayson
17 February 2010 02:18 GMT


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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