Sorry, kids, the bubble hasn’t burst just yet.
Earlier this week, we brought you word that Nintendo would probably never, ever give the Wii a price drop, even though the Xbox 360 has a basic model that’s currently $50 cheaper than the Wii and sales have slumped slightly in recent months.
To better understand why Nintendo will never entertain the idea of a price drop anytime soon, consider this: In Japan this week, all it took to once again decimate the competition was a new console color and Monster Hunter 3.
And that’s how it should work. Price drops are a last resort. They are for consoles in the twilight of their careers, and they’re especially foolish for consoles that have yet to break out of the “loss leader” category, as that means even more money is being lost per console sold. It’s a category Nintendo systems will never be in, as the company sells theirs from day one for a profit. There is literally no reason whatsoever at the moment why Nintendo would even be remotely considering a price drop. Will people continue to complain? Sure, and Nintendo will keep selling consoles. In matters of business, which side do you think is “right?”
But anyway, it turns out the lull was a direct result of a lull in quality games. What a concept! In Japan, at least, that lull is over.