Thursday, 20 September 2012

Why the Wii U price is spot on, for now.

The price I'm taking is from the US confirmed price for the black Wii U: $350.

I am not counting the cheaper 8gb white model because Nintendo as with other companies, release a lesser SKU to try and highlight the more expensive SKU's value. For example, why buy the white Wii U for $300, when, for $50 dollars extra, you can have the better model. It's a simple marketing trick that has been used for a while now.

Lets breakdown the cost. Bare in mind these figures are not 100% accurate. 

  • $100 dollars for the controller 
  • $250 for the actual console

The black $350 Wii U

As of today, the 250gb Xbox 360 will set you back $250 and the 160gb Ps3, another $250.

Now considering the Wii U is slightly more powerful, you can see that the actual price isn't that dear. The console itself is would cost the same as the 360 and Ps3, if it not for their tablet. Nintendo have timed it perfectly. They can benefit from having the most powerful console for at least a year. 

The problem arises when Sony and Microsoft release their new consoles. These consoles will have been announced by this time next year and will be considerably more powerful than the Wii U. Obviously, the price point for these will be higher than $250, try $400-500 for both. The Wii U will be out-dated by then, but as seen with the original Wii, the technology doesn't have to be the best, as long as it captures the users imagination, in the Wii's case, the motion controller.. Nintendo have tried to do this with the new tablet but in my opinion this is not enough.

The price point for me, is perfect. The Wii U will sell well for at least a year. It may start to struggle as the other next-gen consoles come out, but they will be positioned as the cheaper less sophisticated console.

This worked for the Wii and it may just work for the Wii U.

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