Scott Moffitt, the executive vice president of sales and marketing at Nintendo of America,
firmly believes that the pricing of the Xbox One and the PlayStation 4 make the Wii U a great value proposition for consumers. Moffitt says that the only way to experience their franchises is going to be on the Wii U and there’s no plans for a price cut for the system.
“No. We have no plans to change the price of Wii U. The Wii U is a great value. With great content coming, that will drive the hardware installed base. We’ve gone from being the highest-priced console on the market to now being a great value with the announcements from our competitors. The perception of our price has changed, but what’s also changed is that people now see what great content is coming. They’ll see the value in those games. They’ll be able to enjoy a Wii U in their household for a lot less than a competing console.”
“I haven’t had a lot of time to study their announcements, but I can tell you that I feel very confident about our chances to compete and about what we’re bringing to market. “Content is king” has never been more true. The only way to experience our franchises is going to be on the Wii U. While Microsoft and Sony may compete for the hearts and minds of core gamers, our fans will appreciate the breadth of content that we’ve got, which has universal appeal. Avid gamers, kids, families, all of them will find something in our lineup that’s fun to play and that’s bringing new, unique experiences. Innovation is what Nintendo stands for. We’re proving that with a fresh new, reimagined array of games we’re bringing to market this year.”
Cowen & Company analyst Doug Creutz says that the Wii U is “struggling mightily” to gain traction. Creutz is convinced that Nintendo will introduce what he says is a badly needed price cut during E3. Creutz does think that a price cut and strong key franchises could turn things around for the troubled console, but says that Nintendo’s window for igniting interest in Wii U is closing rapidly due to the forthcoming consoles from Microsoft and Sony.
“After seven months on the market, Nintendo’s Wii U is struggling mightily. We note that the company has essentially abandoned the field to Microsoft and Sony at this year’s E3 as Nintendo will not be holding a press conference.”
“However, we do think there is a decent chance that Nintendo could announce a price cut for the Wii U at E3 in an effort to bring attention to the console and boost sales. We note that the console will have a series of key new games coming out through the late summer and fall, beginning with Pikmin 3 in August. Nintendo’s window for igniting interest in its console is closing with Microsoft and Sony’s competing machines soon to come to market.”
Amazon UK has decided to cut the price of the 8GB Wii U Basic package. The Basic Wii U console normally retails for £249.99, so consumers will save a staggering £100. Amazon hasn’t reduced the pricing of the 32GB Premium Wii U console which comes bundled with Nintendo Land, but it’s only a matter of time. UK retailer Asda recently slashed the pricing of the Wii U 8GB Basic to £150, and the Wii U Premium 32GB with Nintendo Land to £200.
ShopTo’s purchasing director James Rowson has revealed in the latest edition of MCV magazine that the price cut they issued for the Wii U hasn’t driven sales enough. The company discounted the 8GB Wii U Basic console to test the market and see how it fared. ShopTo is selling the Basic package for £189.95, which is 24 per cent cheaper than the initial £249.99 asking price. ShopTo wasn’t alone as Amazon, GameStop and Asda also reduced the pricing. Another top buyer at one of the UK’s biggest games retailers says that Nintendo has to do something otherwise it’s the Gamecube all over again.
“[We've] taken the decision to reduce the price of the Basic Wii U to test the market and assess the impact of a price change for a short period of time.”
“[We are] looking to reduce [Wii U space] slightly but must admit [Nintendo's] silence on strategy is deafening at the moment.”
“They’ve got to do something otherwise it is GameCube all over again.”
- Anonymous UK retailer
Asda has announced today that it has slashed the price of the 32GB Wii U Premium Pack with Nintendo Land and the 8GB Wii U Basic Package. The 32GB Wii U Premium Pack which comes with Nintendo Land bundled in is selling for £250 and the 8GB Basic Package is now available for £200. The offer is now available from the Asda Direct website.
In a presentation to industry analysts and reporters, Nintendo President Satoru Iwata said a price-cut for the company’s latest video game home console, the Wii U, is not an option. According to Iwata, Nintendo is already selling the Wii U at below cost, and instead of slashing the its price, Nintendo will introduce more games that are unique to the new console and ones that completely take advantage of the hardware’s capabilities. Considering Nintendo sold over three million Wii U consoles to date, do you think the console’s price tag should display a smaller number?
One of the forum goers on Cheap Ass Gamer has heard word from a retail source that the regular Nintendo 3DS will be getting a price cut in two weeks, and will retail for $139.99 in North America. The same forum member also says that Nintendo will be releasing a Mario Kart 7 Nintendo 3DS XL bundle for $199.99, which will go on sale next week.
Thanks, Simply G
It appears as though Sony’s latest handheld, PlayStation Vita, which released February 2012 in North America and Europe, will not receive a price cut this year. Sony’s managing director of PlayStation UK, Fergal Gara, confirmed the PlayStation Vita’s price will be reduced sometime next year, 2013. Nintendo 3DS, which launched March 2011 in North America and Europe, received a major price drop less than five months after its debut.
The Japanese version of the Nintendo 3DS XL will be sold without an AC adapter. In Japan, the 3DS AC adapter is sold separately for ¥1,500 but, to make it more affordable, Nintendo will be reducing its price to ¥1,000 starting July 12th. The North American 3DS XL will be sold with an AC adapter but, like the Japanese version, the European version will not be sold with one, so perhaps Nintendo will reduce its price in Europe as well.
It is crucial for a new console to be priced right – a console will not sell well if it is too expensive for the average consumer. Explosion believes that it is natural for new consoles to become more expensive as technology advances, but pricing can also put the console-developer in financial trouble. Explosion thinks that the 3DS was too expensive at its initial price-point and that it would not have been selling as well today if it wasn’t for the price cut, regardless of the games offered. How much are you willing to pay for the Wii U?