Analyst: Nintendo Needs to Cut Price of Wii

All my friends say that the only reason the Wii is beating the 360 and PS3 is because it’s affordable. Now, a top anylist is saying that it might be a good move for nintendo to drop the price even further to put distance between itself and Sony and Microsoft.

My friends are going to get a little angry.

Mike Hickey is a Senior Research analyst for Janco Partners, which follows technology companies. He states that with Microsoft and Sony bringing the big guns this year, Nintendo might have to change their strategy a bit.

“We believe Nintendo needs to cut the price of their console from $200 to $150 immediately, as they should establish as meaningful of an installed base as possible before the Natal and Arc are introduced.”

“We believe they also need to generate strong hardware sales momentum into their competitors release or face the draconian consumer perception of the Wii having a dramatically reduced entertainment value proposition over a faded technology innovation; Rock Band anyone?”.

All of which makes an awful lot of sense. With the pending releases of Natal and Arc, the Xbox 360 and PlayStation 3 will offer something for both hardcore and casual gamers. In addition, Sony and Microsoft have dropped the prices of their consoles, making them more competitive with the Wii and seeing their sales gain ground on Nintendo’s flagship.

Will Nintendo end up cutting the Wii’s price this year? Only time ( and tons of Mountain Dew on my part) will tell.

Source: Industry Gamers