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In an investor relations Q&A over on Nintendo’s Japanese site, President and CEO Satoru Iwata spoke out about a couple key bits of info: price drops and upcoming mega-software. According to Mr. Iwata, price-drops, though unlikely to happen anytime soon, are certainly not off the table. Apparently, Nintendo has been skeptical about reducing prices for their consoles in one country for fear of having to do the same in other areas, as consumers will expect prices to come down soon and not purchase the hardware as a result. Iwata: “I have never said that cutting the suggested retail price is not in the cards. However, price cuts in one country can certainly affect other countries. For example, when you say that we should cut the price in Japan due to the current domestic market situation, once the suggested retail price is cut in Japan, people outside Japan will anticipate the same around the world… if we really do enact a price cut, it must be exactly when it can maximize the business. At least for now, I have no specific ideas about the price cut at all.”
That is a bit disappointing (although most of you reading this probably already own a Wii). On a much more interesting note, Nintendo likely needs no price cut because system-moving software is just around the corner, or quarter, as the case may be. Iwata: “The reason why I said today that April, May, and June sales of Wii will not reach last year’s results but that the situation will change from the summer of this year was because the company has been preparing for several titles to be launched toward the end of this year that can drive the market.” Did you hear that friends? Market-driving games by the end of the year. Now I really can’t wait for E3! |
