Nintendo slashes Wii price to bolster sales

The Kyoto-based company said in a statement that price for its motion-sensing Wii will be slashed by $50 in the U.S. from Sept. 27. Price cut will be introduced in Japan on Oct. 1 and in Europe the following day.

The new $199.99 Wii will incorporate the Wii remote controller, Nunchuk controller and Wii Sports software. The price cut is the first ever to be introduced since the launch of Wii in November 2006.

The company will also launch the New Super Mario Bros. Wii game on Nov. 15.

"Our research shows there are 50 million Americans thinking about becoming gamers, and this more affordable price point and our vast array of new software mean many of them can now make the leap and find experiences that appeal to them," said Cammie Dunaway, Nintendo of America's executive vice president of sales & marketing, in a statement late Wednesday.

Price cut to counter declining sales
Though the Wii, a game console that senses motions without depending too much on buttons and levers, is the best-selling game console with more than 52 million sales worldwide up to the end of June, its sales have slumped compared to previous fiscal year.

The price cut is aimed at countering declining sales amid economic slowdown. Both Sony and Microsoft have been able to register higher sales after slashing prices.

Microsoft had cut the cost of the most Xbox 360 Arcade model by $80 to $199.99 a year ago and that led to a 20 percent increase in sales in the first half of this year.

Sony had reduced the price of PlayStation 3 by 25 percent to $300 and sales crossed 1 million mark in the three weeks following the price cut.

“The timing of the price cut was very good since Wii sales were slowing down,” said Etsuko Tamura, an analyst at Mizuho Investors Securities Co. in Tokyo. “Combined with upcoming game titles, sales will probably increase toward the end of year.”

Mixed reactions among online readers
While Nintendo is hoping that the price cut will bolster sales during the upcoming holiday season, readers online are really not convinced.

One reader ‘Jammie’ posted his view on the Christian Science Monitor saying, “What great news! I’m planning on buying it for my niece and nephews this Christmas. This $50 savings will help pay for a handful of used games for it. Thanks, Wii!”

But another reader ‘wiidsduelpack’ commented on gamespot.com saying “The Wii is still the most expensive console. Its games are very limited compared to a 360 and a ps3 and yet most Nintendo fans buy them. This comes from a wii owner, but sincerely Punch Out seemed like a rip off for $50.

“It has no on-line service, no good multi player, and it is a short game. Not worth it for fifty. DK Jungle beat is $30, so Nintendo games can be lowered and still make a profit.”

On the same lines, a reader named ‘Beastcake’ stated, “The price for the Wii was never the problem, it was the crap churned out for us supposed "hardcore gamers".”