14 DAY TRIAL // Nintendo has been experiencing some very strong sales ever since it released the Wii and DS consoles onto the market a few years ago. But after a long time, when it seemed that almost every person on the planet was buying one of these devices, sales were beginning to decline for the Japanese company.
This, coupled with the fact that seemingly the manufacturing price of the Wii dropped by almost half, made a lot of people say that Nintendo would soon make a price cut on its Wii console, in order to keep it in the public spotlight and make it more attractive to those who hadn't bought one yet.
Now, Nintendo's president, Satoru Iwata, has talked about this subject with CNBC and has revealed that while a price cut may guarantee a boost in sales, it will only stay that way for a short period of time, and won't maintain any momentum.
“Right now, we have no plans at all about a price cut,” Iwata says. “We are going to start launching the stronger software in the later half of the year — and we are confident we will regain the momentum. People often talk about the price cut as if it’s an almighty weapon. The fact of the matter is that what a price cut can do is rather limited. In the long history of video games, at the time of the price cut we see a momentary hike in sales, but usually that can not sustain its momentum and it soon comes down to below the price cut level.”
So it seems that while analysts and gamers want a price cut, Nintendo will only be relying on its software lineup in order to maintain the momentum of sales for its Wii and DS consoles. With titles such as Super Mario Galaxy 2, Wii Fit Plus or Mario & Luigi: Bowser's Inside Story, it seems that the devices will bounce back and bring an even bigger profit for the Japanese company.