British retailer ShopTo estimates the WiiU’s price at £280, with projected cost per game at around £40. The figure is very much in alignment both with an earlier report from Japanese publication Nikkei, as well as previous hints from Nintendo. “The first thing I would say is we focus on value,” Nintendo’s Reggie Fils Aime said at E3.
Value Proposition and Market Strategy
“So it’s what you get for what you pay, in terms of that overall proposition. Second thing I would tell you is that Nintendo believes in being a mass-market product. Unlike our competitors, when they’ve launched historical systems, to maybe start at a really high price and work their way down, we don’t believe in that. We want to launch at a price that is going to represent an ongoing great value.
“You look at the Wii, we stayed at 250 dollars for a really long time. And so we’re going to give that same level of thought to the Wii U. How do we launch at a value that we’re going to be able to sustain for a long time? I think people are going to be pleasantly surprised, if you will, about the way we’re managing the value equation.”
Comparative Pricing and Market Impact
The pricing strategy for the Wii U is particularly interesting when compared to its competitors. Historically, companies like Sony and Microsoft have launched their consoles at higher price points, gradually reducing the cost over time. For instance, the PlayStation 3 initially launched at a steep price, which was later reduced to make it more accessible to a broader audience. Nintendo’s approach, however, has always been to offer a more affordable entry point from the get-go, ensuring that their consoles are accessible to a wider demographic right from launch.
This strategy has proven successful in the past. The original Wii, for example, was launched at a competitive price of $250 and maintained that price for an extended period. This not only made it a popular choice among casual gamers but also helped Nintendo capture a significant market share. The Wii’s success can be attributed to its innovative motion controls and family-friendly games, which appealed to a broad audience, including non-traditional gamers.
The Wii U aims to build on this success by offering unique features such as the GamePad, which introduces a new way to interact with games. The GamePad’s touchscreen allows for innovative gameplay mechanics, such as using it as a secondary screen for maps or inventory management, or even playing games directly on the GamePad without the need for a TV. This added functionality provides additional value to consumers, justifying the £280 price point.
Moreover, the projected cost per game at around £40 is also in line with industry standards. This pricing ensures that games remain affordable, encouraging consumers to purchase more titles and thus driving software sales. Nintendo’s focus on value extends beyond just the hardware; it encompasses the entire ecosystem, including software and services.
In addition to the pricing strategy, Nintendo’s commitment to being a mass-market product is evident in their marketing and distribution efforts. By targeting a broad audience and emphasizing the unique features of the Wii U, Nintendo aims to differentiate itself from competitors and carve out a distinct niche in the gaming market.
Furthermore, Nintendo’s approach to pricing and value is not just about initial sales but also about long-term sustainability. By launching at a price that represents great value, Nintendo ensures that the Wii U remains competitive in the market for an extended period. This long-term perspective is crucial in an industry where technology and consumer preferences are constantly evolving.
In conclusion, Nintendo’s strategy for the Wii U, with its focus on value and mass-market appeal, is designed to replicate the success of the original Wii. By offering innovative features at a competitive price, Nintendo aims to attract a broad audience and maintain its position as a leader in the gaming industry. The estimated price of £280 and the projected cost per game at around £40 reflect Nintendo’s commitment to providing great value to consumers, ensuring that the Wii U remains a compelling choice for gamers of all ages.
Source Eurogamer
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