Now that its competitors have cut their prices in response to weakening sales, it’s time for Nintendo to cut the price on its Wii console accordingly.
After all, the Wii was already suffering before Microsoft cut prices on the Xbox and Sony slashed $100 off the PS3. Wii sales dropped the most of all three console makers in July, according to NPD group. Wii sales were down 55% versus a 46% decline for the PS3 and 1% for the Xbox.
Thursday, Microsoft said it would cut prices on its Xbox 360 Elite to $299 from $399 and Xbox 360 Pro (which it plans on phasing out) to $249 from $299. This follows Sony’s price drop on its PS3 to $299 from $399 about a week ago. Wii’s current price is $249, but it lacks many features that the Xbox and PS3 have, including robust Web video access and hi-def movie playback.
The Wii is the leader of the three in worldwide sales, but after being launched nearly two years ago, it isn’t exactly the “must-have” it was when its motion control system was novel. Given the current tough retail market, it’s hard to believe consumers won’t notice if Sony and Microsoft cut their prices significantly while Nintendo maintains its price.
If Nintendo were to cut the price of the Wii in-line with the percentage cut made by Sony and Microsoft, it would bring the average price to around $189. In light of competitors’ recent cuts, that could make the Wii seem like an equivalently good value.