@feelmyring, A price drop does make sense when in your home territory, your competitor (the PSP) is starting to actual compete at a higher level with the DS. Also, Nintendo would still be making profits at a $99.99 price point while increasing sales enough to fill in the bit of profit that would be missing with not having the system at a $129.99 price point. If Nintendo is serious about appealing to an expanded audience of everyone, then making the price point so that it is a much easier decision psychologically for the consumer (there is a bit of difference from sub-$100 to over-$100) to purchase the system.
I believe a $10 to $15 price drop would be a worse move and less likely move than a $30 price drop due to the fact that sales would not receive much of a boost from a $10-15 price drop compared to a $30 price drop - meaning that the bit of lost profit would not be replaced as easily with a $30 price drop. Plus, look at the history of Nintendo with their handhelds - they like to bring their handheld systems down to a sub-$100 price point.
Also, the big profit maker of software sales for Nintendo would be superbly increased by a price drop on the hardware that would get more units out to a wider audience. All Nintendo has to do is make sure they have the supply and then institute a price drop - sales would rocket even higher than what we have seen in the past year.
A price drop to $99.99 in 2008 (obviously not the beginning of 2008, more likely in the summer to pre-holiday seasons) would make the perfect sense for Nintendo and their DS.
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A price drop does make sense when in your home territory, your competitor (the PSP) is starting to actual compete at a higher level with the DS. Also, Nintendo would still be making profits at a $99.99 price point while increasing sales enough to fill in the bit of profit that would be missing with not having the system at a $129.99 price point. If Nintendo is serious about appealing to an expanded audience of everyone, then making the price point so that it is a much easier decision psychologically for the consumer (there is a bit of difference from sub-$100 to over-$100) to purchase the system.
I believe a $10 to $15 price drop would be a worse move and less likely move than a $30 price drop due to the fact that sales would not receive much of a boost from a $10-15 price drop compared to a $30 price drop - meaning that the bit of lost profit would not be replaced as easily with a $30 price drop. Plus, look at the history of Nintendo with their handhelds - they like to bring their handheld systems down to a sub-$100 price point.
Also, the big profit maker of software sales for Nintendo would be superbly increased by a price drop on the hardware that would get more units out to a wider audience. All Nintendo has to do is make sure they have the supply and then institute a price drop - sales would rocket even higher than what we have seen in the past year.
A price drop to $99.99 in 2008 (obviously not the beginning of 2008, more likely in the summer to pre-holiday seasons) would make the perfect sense for Nintendo and their DS.