Along with a Wii U launch date and details on hardware configurations, I will be watching news from the Nintendo press event this week to find out the official launch price for the new system. If the base model launches above $300 in the U.S., Nintendo's role in the console market will be at significant risk. On the other hand, at $250 the system could be extremely compelling to mainstream consumers.
But the Wii U price won't simply determine its own future. Once that price has been announced, it will have immediate and irrevocable effects on how consumers view the Xbox 360 and PlayStation 3.
Much of the current malaise in the U.S. video game market can be blamed directly on the stubbornly high prices of those two leading systems. The Xbox 360 hasn't seen a proper price cut since September 2008, when the base model was reduced to $200. The entry level PlayStation 3 model was cut to $300 back in August 2010 and to $250 in August 2011 but has now gone for over a year with no further reduction.
That puts the base Xbox 360 at 54 percent more expensive and the base PS3 at 92 percent more expensive than the PlayStation 2 at a comparable point in its lifetime.
When Nintendo plays its big card this week, we can expect Microsoft and Sony to relent and begin competing on price again.
Along with a Wii U launch date and details on hardware configurations, I will be watching news from the Nintendo press event this week to find out the official launch price for the new system. If the base model launches above $300 in the U.S., Nintendo's role in the console market will be at significant risk. On the other hand, at $250 the system could be extremely compelling to mainstream consumers.
But the Wii U price won't simply determine its own future. Once that price has been announced, it will have immediate and irrevocable effects on how consumers view the Xbox 360 and PlayStation 3.
Much of the current malaise in the U.S. video game market can be blamed directly on the stubbornly high prices of those two leading systems. The Xbox 360 hasn't seen a proper price cut since September 2008, when the base model was reduced to $200. The entry level PlayStation 3 model was cut to $300 back in August 2010 and to $250 in August 2011 but has now gone for over a year with no further reduction.
That puts the base Xbox 360 at 54 percent more expensive and the base PS3 at 92 percent more expensive than the PlayStation 2 at a comparable point in its lifetime.
When Nintendo plays its big card this week, we can expect Microsoft and Sony to relent and begin competing on price again.
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