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Michael Pachter: give us a price cut, and unbundle Wii Sports (wrong!) photo

Nintendo is very much on top of their game, but that hasn't stopped some analysts from giving their opinions on how they could do it better. The current tidbit of advice comes from none other than Michael Pachter, whose latest idea to keep the Wii a hot commodity is to drop the price of the console to $199, and drop Wii sports:

"The console has a price advantage over the Xbox 360 and PS3 that can be maintained if Nintendo chooses to un-bundle Wii Sports from the console. I think that if Nintendo were to do so and cut the price to $199, it would still sell a piece of Nintendo software to 80% of new Wii purchasers, and would end up effectively lowering revenues per console by only around $10. At that price point, the Wii should be strong again in 2009."

Sales figures seem to indicate that the Wii isn't in need of fiscal CPR just yet, but Michael's plan focuses on looking at the long-term demand of Nintendo's waggle box.

Because of the high-definition video features offered by the Xbox 360 and PS3, those consoles are more likely to end up in the living room, which could relegate the Wii to the playroom. If the Wii is not at the center of the home entertainment system, software sales could suffer as a result."

Price cuts are always nice, and welcomed by all; however, I'm not so sure about the part about stripping out a game in the process. We need to get out of the mindset that value means taking things away from the consumer, in order to lower prices. That, and I'm even less inclined to believe that most Wiis will likely live out the end of their days in the playrooms of children.

Its home is more likely to be dictated by how often it's used, and by whom. With the Wii's total sales in excess of 20 million, I'm betting that a sizable chunk of them can be found in gamers' living rooms -- next to their PS3s and 360s. I also tend to believe that most people don't like buying a console without any games to play on it. If you have to immediately spend another $50 just to have something to play on it, that kind of cancels out any savings. I think Nintendo is doing just fine the way things are. As long as quality games keep coming out, the Wii is going to continue to command a captivated audience.

[Via Gamasutra]








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49 comments | showing # 1 to 49
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that1dood's Avatar - Comment posted on 01/30/2008 11:51
that1dood
But there haven't really been that many quality games coming out. The last really good game was Super Mario Galaxy. Which, granted, was good but there just aren't THAT many FANTASTIC games yet. Soon there will, but not yet.
winojesus's Avatar - Comment posted on 01/30/2008 11:51
winojesus
who did this idiot blow to get his job?
he has a roughly 2% success rate.
fuckin hell.
moot button's Avatar - Comment posted on 01/30/2008 11:51
moot button
"waggle box" sounds fucking dirty
that1dood's Avatar - Comment posted on 01/30/2008 11:54
that1dood
Also, while the price drop would be welcomed by some, I don't think it's really necessary. But I will say that the price is what's keeping me from buying a PS3 or a 360. I have a really hard time justifying paying over $400 for a console a one game. That just sucks.
Excel-2011's Avatar - Comment posted on 01/30/2008 11:56
Excel-2011
There is absolutely no way a price cut is going to happen with the current supply situation. If anything, were this another company, I would expect a price increase with all this mind-numbing success.
Harlo's Avatar - Comment posted on 01/30/2008 11:58
Harlo
Yes, let's drop the price on a console which stores still can't keep in stock to drive demand even higher. Good plan. How about trying to make them readily available. Kthxbai.
Holyetheline's Avatar - Comment posted on 01/30/2008 12:00
Holyetheline
Or they could buy Endless Ocean with their Wii so the price is 230?
covah's Avatar - Comment posted on 01/30/2008 12:02
covah
Patcher has been preaching that the HD game consoles will be picking up steam and beating the wii for a good year now, it's just laughable. And how is unbundling Wii Sports a good idea?
bruceleethree's Avatar - Comment posted on 01/30/2008 12:03
bruceleethree
Wii is overpriced.

Wii is overhyped.

Wii is overdusty.

Wii is a gimmick.

Nintendo fails at 1:1 response times.
Corak's Avatar - Comment posted on 01/30/2008 12:04
Corak
I agree that a price drop isn't really needed right now, I think that the Wii is still very much in demand, we are still only about a month after the holidays remember. Its $250, when the ps2 was released didn't it cost $299? Granted the Wii can be considered a gamecube with different controllers, I know I'm being glib but its pretty accurate and I own a Wii so shutup. But I play my PS3 more than I do my Wii especially since I own an hdtv. But when friends are over we are playing the Wii and not the PS3. However, with HDTV being phased in more and more, and people are buying them more since the cost is coming way down. That and the fact that retailers like Best Buy only sell hdtvs now means people might be more prone to hook their 360 or PS3 to it and relegate the Wii as a secondary console.
XerxesTWD's Avatar - Comment posted on 01/30/2008 12:06
XerxesTWD
Has Michael Pachter ever been right?

Every time I see his name, he's always saying some nonsense about how the Wii is going to fail and he makes excuses for why he was wrong last time.
MissHinasaki's Avatar - Comment posted on 01/30/2008 12:09
MissHinasaki
I am totally fine with this. I might actually buy a Wii now. I'd rather spend that $50 on a game I would actually like to play.
Darren Nakamura's Avatar - Comment posted on 01/30/2008 12:23
Darren Nakamura
It would be stupid to drop Wii Sports. That is the game that half the people buying Wiis are actually buying them for.
TheStripe's Avatar - Comment posted on 01/30/2008 12:24
TheStripe
Michael Pachter is almost as big of an idiot as the trolls in this thread.

@that1dude - So did you play No More Heroes or did you write it off?

@Corak - STFU. I have an HDTV, and my Wii sees as much action as the 360. Using HDTV to predict a console's sales/third-party games/all-around success is fucking dumb. You're just like Moron Pachter.

@bruceleethree - so you've played a majority of the well-reviewed Wii games from beginning to end, so you know there's no quality there, just hype, right? Oh wait, no you didn't. STFU.

@MissHinasaki - Don't get your hopes up. Expecting a price drop on any item whose production can't keep up with demand is as retarded as believing games are the source of violence.
king3vbo's Avatar - Comment posted on 01/30/2008 12:28
king3vbo
Good point...
that1dood's Avatar - Comment posted on 01/30/2008 12:35
that1dood
@ TheStripe
I haven't had a chance to play it yet.

@GameBoi
Great, there are a few good games. But in comparison to say the 360, there aren't that many fantastic games IMHO.
Brian Szabelski's Avatar - Comment posted on 01/30/2008 12:35
Brian Szabelski
Pachter has got to be kidding. We will only see a Wii price drop when demand dies down... in 2010.
amalgamut00's Avatar - Comment posted on 01/30/2008 12:54
amalgamut00
If it doesn't come with Wii Sports then what will half of the people place?
Bob Muir's Avatar - Comment posted on 01/30/2008 13:08
Bob Muir
It would be catastrophic if Nintendo stopped bundling their glorified tech demo. So many people wanted to buy the Wii not because it's a platform with plenty of potential (currently going unused), but because they want to play Wii Sports. For most mainstream consumers, Wii Sports is the Wii, and mentioning that you can take the disc out and buy other games quickly causes them to lose interest in what you're saying, as though you were telling them about some obscure Japanese strategy RPG. It's a sad fact, but the Wii is currently selling on Wii Sports.
JonDarkwood's Avatar - Comment posted on 01/30/2008 13:18
JonDarkwood
bruceleethree

Nintendo can't fail at something they're not trying to do, e.g. 1:1 responsiveness. The Wii uses a more gestural control scheme.

But if you don't understand that by now i'll just assume you're a trolling fanboy. Go back to your haloes or whatever.
crimson diabolik's Avatar - Comment posted on 01/30/2008 13:22
crimson diabolik
Heres a sure fire way to move more Wiis: just make more of the damn things. More Wiis on the market=more money for Nintendo.
Aaron Mxy Yost's Avatar - Comment posted on 01/30/2008 13:27
Aaron Mxy Yost
Why the hell would they unbundle Wii Sports? That's crazy talk right there.
timmet's Avatar - Comment posted on 01/30/2008 13:28
timmet
Durrr... The Wii can have a price cut and keep Wii sports, Nintendo is making enough money off the wii that they could easily cut $50 if they wanted to. They could probably cut more if they had to. They aren't because demand is so high that there isn't a benefit to do so. Sony is in the worst place so that's why they are cutting prices.
skullivan's Avatar - Comment posted on 01/30/2008 13:35
skullivan
Nintendo has been scamming people with the Wii at $250 from the very beginning. They can easily lower the price to $200 without having to unbundle Wii Sports to do so. It's a game that would sell for $20 on its own but they get people to pay $50 for it because it is included "free".

The Wii has sold for under $200 in Japan since day one :P

But why in the world would they lower the price when they can't keep them in stock at $250? They'll drop the price when sales start to slow a little or MS lowers the 360's price again.

Everyone really needs to stop looking at the Wii as if it is a part of the "console war". The 360 and PS3 are in a war. The Wii is a completely different product as far as I'm concerned. You might as well lump the DS in, and in that case, it's the undisputed console leader.
TheStripe's Avatar - Comment posted on 01/30/2008 13:38
TheStripe
@that1dude - Please stop talking about the quality of games you haven't played.

@Skullivan - "scamming?" No one is forcing people to buy the wii, or is your assessment based on the fact that the wii isn't nor has ever been a loss leader?

@Necros - "It's a sad fact, but the Wii is currently selling on Wii Sports." Right, that's why it has far and above the best attach rate.

Next!
NightDehumidifier's Avatar - Comment posted on 01/30/2008 13:52
NightDehumidifier
The only way for the Wii to sell well is to offer up senior discounts and rebate offers for having more than two kids under the age of five. (since it's the target demographic this isn't hard)
atheistium's Avatar - Comment posted on 01/30/2008 13:57
atheistium
@bruceleethree agreed.

I will end up buying a Wii, mainly for the Resident Evil title and Fatal frame. However I wouldn't never play Wii sports, I've played it twice and.. I'm not a fan. So a cheaper option minus wii sports would do me just fine.
kusarigama's Avatar - Comment posted on 01/30/2008 13:57
kusarigama
I don't really know about the wii having quality games. I own one, and the only games I've really played on it lately are galaxy and guitar hero III (only because my brother got it for the wii). I'm not going to deny that twilight princess and resident evil 4 are great games, but those are gamecube games ported to the wii, with no changes except wii remote controls, which I personally think aren't as good as the original gamecube controls. Someone posted a link to the metacritic index of wii games, but if you would happen to actually compare that list to the 360 or even PS3 index, it doesn't look so hot.

I think the wii has a lot of potential, but really hasn't been unlocked yet. Whether or not we'll see that in the future, I don't know. Brawl does look damn good, though.
rdaneel72's Avatar - Comment posted on 01/30/2008 14:00
rdaneel72
NEWS FLASH!!!!!!!!!!!!!!!!!!1

Wii is not selling boatloads because of its low price.

Wii is not selling boatloads because of its "revolutionary" motion controlls.

Wii is selling boatloads because it is simple to understand how to play. You can hand the Wiimote to your grandma, boot up Wii Sports Tennis, and she will figure out how to play in 5 minutes. Motion-controls are simply one way of SIMPLIFYING videogame controls so that everyone gets to play. Touchscreen was another. The Gamersphere will bitch about "casual" games, but it is the "EASE of USE" that is selling Wiis right now. And will continue to do so until everyone has one.

It is so funny coming to Destructiod and watching the Gamersphere bitch and moan about Wii. Like Nintendo's business strategy is a personal affront to the vocal, hardcore minority. Subtract the Destructoid readers from the TOTAL POPULATION OF THE EARTH, and I think Nintendo's plan is pretty smart. The hardcore ABANDONED Nintendo a decade ago. Why should Nintendo continue to cater to the Gamersphere who would rather play Halo anyway? Especially when there is ALL THE OTHER PEOPLE IN THE WORLD to market to?


And anyone who says Wii has no good games is kidding themselves. No More Heros is 2008 GAME OF THE YEAR!!! That's right, I said it.
TheStripe's Avatar - Comment posted on 01/30/2008 14:02
TheStripe
@NightDehumidifier - Do you live under a rock, or do you not understand numbers?

@Kusa - how about Metroid Prime 3, No More Heroes, Zack and Wiki, Battalion Wars? I do know about the Wii having quality games, and it does.

@atheistium - Price drop not coming. Not anytime soon, Michael Pachter is a moron, (see above, and anything he's ever said about the gaming industry)
kusarigama's Avatar - Comment posted on 01/30/2008 14:17
kusarigama
@TheStripe

I've played all of those games, and own MP3, and think they're fine games. No question there. I'm not saying it doesn't have ANY quality games, I'm saying that it needs more, because personally, I don't think any of those games (besides Zack and Wiki) offer anything that hardcore gamers can't get on other consoles/PC, and better. If you've got a wii and are enjoying it, then fantastic. I'm just voicing some of my disappointments with a console that I was extremely excited for before launch.
Vigor's Avatar - Comment posted on 01/30/2008 14:24
Vigor
It seems all three major console companies are dumb in some big way. I dont think i need to list reasons why.
ajay42's Avatar - Comment posted on 01/30/2008 14:37
ajay42
People really don't like Wii Sports? Like, you guys aren't just pretending but you really, legitimately don't get a kick out of it? Even some of the training contests and what not? It's ok if you do. You can admit to liking it, cause I sure as fuck do and pretty much everyone who touches it is having fun in no time. I promise, I won't tell anyone if you do...

Anyway I know its been the standard for ages no but no pack in = fail. When you're spending that much on something it should DO something FUN straight out the box. I shouldn't have to invest more immediately to get something out of it.
loki d20's Avatar - Comment posted on 01/30/2008 14:40
loki d20
Price cut it all they want (which they won't), having only one game I want to play won't get me to buy the console at any price. Why someone would be talking about the fiscal concerns for a console that was sold out two Winter Holiday Seasons in a row is beyond me, though.
Dan CiTi's Avatar - Comment posted on 01/30/2008 15:07
Dan CiTi
How about they just bundle it with a real game? Like SMG or SSBB.
TheStripe's Avatar - Comment posted on 01/30/2008 15:30
TheStripe
OMG! The $250 console need to include a better game! It's okay that the $400 consoles don't have one at all, tho, because they're not Nintendo.
Snaileb 's Avatar - Comment posted on 01/30/2008 15:51
Snaileb
Isn't the Wii one of the most inexpensive consoles in history?
vp360's Avatar - Comment posted on 01/30/2008 16:40
vp360
wii sucks
Gavin's Avatar - Comment posted on 01/30/2008 19:05
Gavin
Who cares how much the Wii costs....it is still dumbing down video games.

That should be enough to anger fans of the industry no matter what it costs.
TheStripe's Avatar - Comment posted on 01/30/2008 19:38
TheStripe
Gavin = dumbed down

Crap has existed since the 8-bit generation. Games like No More Heroes and Metroid Prime 3 are not dumbing down gaming. Brainless FPS games like Frontlines and America's Army are. Nintendo's console is actually the only one of this generation doing anything totally new. Yes, faster processors and GPU's are making games more visually realistic and allowing better AI, but those things are only used to forward the status quo. The Wii is actually ushering in new gametypes and mechanics. Could a game like zack and wiki happen on a 360? Yes, but by the second level you'd be tired of using the analog stick to move your pointer around. I understand that change is scary, but your generic FPS games aren't going anywhere. I however, love that Nintendo is shaking things up and making the industry move forward. Failure to recognize that should be enough to anger fans of the industry.
Aaron Mxy Yost's Avatar - Comment posted on 01/30/2008 19:52
Aaron Mxy Yost
I agree with some of you and disagree with the others.
Dynamic Sheep's Avatar - Comment posted on 01/30/2008 20:08
Dynamic Sheep
What an excellent analysis of the situation Mxyzptlk! You should get Pachter's job!

Ok, come on, really... the Wii needs a price cut... WTF? They sell like crack filled pancakes in the projects and the majority of people who buy one only want it for Wii Sports. Unbundling would be a terrible idea!
liqideos's Avatar - Comment posted on 01/30/2008 20:35
liqideos
250 is, and has always been, 100 dollars too much.
BigKev's Avatar - Comment posted on 01/30/2008 21:25
BigKev
The millions of people who have bought, or are attempting to buy one seem to disagree with you liqideos.
The Phazer's Avatar - Comment posted on 01/31/2008 07:54
The Phazer
If Nintendo feel they have any problems getting the things in living rooms for TV content they'd be much better off writing Adobe a blank cheque to get full latest version Flash video support, and then build a portal to YouTube, Hulu and the BBC site that was nice and customised and looked full screen.

That'll shift more consoles than HD would this generation.

What they should not do is cut out the piece of software that has generated that truck load of cash.
TheStripe's Avatar - Comment posted on 01/31/2008 12:02
TheStripe
@The Phazer - WTF? You think the way to win this generation's console war is to make sure it has a full featured web browser?

Wow, that's some brand new kind of WTF right there . . .
The Phazer's Avatar - Comment posted on 02/01/2008 09:04
The Phazer
@TheStripe No, I don't - Nintendo has already won.

I just said that *if* (and I see no great reason too) Nintendo wanted to make the Wii a viable box for watching television on then focusing on making it a good box for Flash streaming with the newer client and building lots of nice interfaces for them is something Nintendo could do really easily and relatively cheaply, and it would make a much bigger impact than HD will during the Wii's lifecycle.
TheStripe's Avatar - Comment posted on 02/01/2008 10:04
TheStripe
Not nearly as much of an impact as continuing to produce new, original games that also happen to be an assload of fun.
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