With yesterday’s price cut for Nintendo’s Wii made official by the company, the Mario factory expect a huge increase in sales.
How so? Based on PlayStation 2’s console sales after the price drop, according to Nintendo’s President and COO Reggie Fils-Aime.
“For us this is a very important move. This is only the second price reduction for Wii hardware since we launched back in November 2006. And in the last home console cycle, the leading system at the time sold almost 50 per cent of its volume at a price point of $149 or below.” – Reggie Fils-Aime at MSNBC.
Despite the slowdown in sales, Wii currently sits at the top of the leaderboard with 86 million units sold in the current generation of consoles. However, that still significantly lower than the previous generation of consoles where PS2’s 150 million consoles still hold the record in the last 10 years. If Nintendo is right, their console could easily beat the numbers and expectations could reach as high as 170 million units sold.
Fils-Aime also spoke of the recent sales: “Typically a system peaks in the second year of availability and then gradually declines.”
Wii was fortunate to have a number of very strong selling years in its third and fourth year of availability. And from our perspective, the curve that we’re on is natural and to be expected but importantly, the sales curve is higher than any other system.”
So where will these new Wii sales come from? “There are a lot of households where kids will be off from school and the parents are either looking for celebratory presents as the children finish the school year or they’re looking for a fun exercise to keep the kids busy and happy during the summer time frame,” said Fils-Aime.
It will be interesting to see how this pans out. In the past, Sony has made price drops on the PS2 but well before any announcement of the Playstation 3. With Nintendo’s next console showing up at E3 this year, it leaves me wondering how sales will be affected knowing well that a new console is coming.