Why the Nintendo Wii Doesn't Need a Price Drop

At launch, the Xbox 360 retailed for a premium price of $399.99 while the Playstation 3 sold at the premium price of $599.99. Since then, Sony and Microsoft have worked diligently to reduce the price of the Playstation 3 and Xbox 360. The Playstation 3 can now be bought at the price of $299.99 while you can purchase an Xbox 360 for either $199.99 or $299.99. The Nintendo Wii, on the other hand, has remained at the same launch price of $249.99. Even though many critics are calling for one, Nintendo shouldn't drop the price of the Nintendo Wii due to the following reasons.

Brand Recognition
While Nintendo ahs always been a household name, they have fallen into tough times with the Nintendo 64 and Nintendo Gamecube. Fortunately for them, they managed to recapture the imagination of the public's eye with the Nintendo Wii thanks to the new motion controls. Because of that, the Wii became a household name. When the system was suffering from supply shortages, many consumers were willing to go above and beyond the $249.99 price point. Thus, the Nintendo Wii doesn't need a price drop due to its strong brand recognition.

Different Market
Although the Playstation 3 and Xbox 360 got price drops, that doesn't necessary mean that the Nintendo Wii has to as well. This is because the Nintendo Wii mostly appeals to a different market than the Playstation 3 and Xbox 360. While the high-definition systems cater to your typical hardcore gamers, Nintendo's video game system is built specifically for the casual audience. With very little direct competition, Nintendo doesn't have to drop the price on the Nintendo Wii.

Still Selling
Of course, why drop the price for something that is still selling? The Nintendo Wii is the fastest-selling video game system ever since it launched in late 2006. To make the feat more impressive, the system suffered from mass shortages early on. Even though the Nintendo Wii has been declining in hardware sales compare to the previous year, it is still outselling the Playstation 3 and Xbox 360 handily. So unless the high-definition systems can consistently outsell the Nintendo Wii, don't expect a price drop from Nintendo.

Uniqueness
While many see the Playstation 3 and Xbox 360 as two similar video game systems, the Nintendo Wii is completely different. Instead of graphics, multimedia features and online connectivity, Nintendo opted to focus on the motion capabilities with the Nintendo Wii. As a result, many consumers bought the system for the new and innovative control setup. Even with the big price drop for the Playstation 3 and Xbox 360, the two high-definition systems still can't compete with the core element of the Nintendo Wii's success.

Already Cheap
Finally, many already consider the Nintendo Wii as quite a bargain, especially when compared to the Playstation 3 and Xbox 360. For $249.99, the system comes packed-in with Wii Sports. The Nintendo Wii managed to sell well thanks to its low price point. Even today, many consumers still view it as a bargain. Nintendo therefore shouldn't drop the price of the Nintendo Wii just yet.