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Friday, June 19, 2009

Sony Price Cuts?

Here's a little something from GoNintendo:

"Logically, if Sony cuts the price of PS3 to $299, Nintendo may be forced to cut to maintain sufficient price differential versus the PS3 and 360. In other words, hardware sales, while slow now, are about to get a boost in the near-term driven by price cuts." - Sterne Agee analyst Arvind Bhatia

I really don't see things that way. I don't think those looking to buy a Wii are really paying attention to what's going on with 360/PS3 prices. It's a different market, and the core that do follow games already know what's going on…and probably have a Wii by now.

While GoNintendo is obviously pro-Nintendo, I have to disagree with their statement.  The main advantage of a Wii is it's cheap in a bad economy.  Nintendo is already raking in money hand over fist, making almost $60 on each console.

(By the way, $60 x 50 million? 3 billion dollars.  Chew on that number for a bit.)

In other words, if Nintendo dropped their console to, say, $199, they would still have the advantage in price, putting them firmly in the lead and encouraging the fence-sitters to buy.  The only thing they need to do next is allow the Wii to play DVDs or bring streaming video to the States to really land the knockout punch.