Blog #2

by carre107

After searching on businessweek.com again, I have found another Nintendo article (http://www.businessweek.com/ap/2013-01-31/news-summary-nintendo-rules-out-wii-u-price-cuts). The president of Nintendo won’t be cutting prices on the Wii U even though its sales have been lower than usual. Being a gamer who has tried the Wii U, I’d like to say that I’m afraid I haven’t bought, nor will buy the Wii U unless the price drops or if they make changes to the system. I’m sure part of the reason sales were not high is because of the price. One of my biggest concerns about the system is that anybody other than the primary player has to use an old Wii controller. Why would you invent an awesome new controller with a lot more capabilities and set up your system so that only one person can use it at a time. This makes multiplayer, a fast growing part of the video game industry, not as fun.

If Nintendo can’t get sales to increase, I would suggest decreasing the price of the console, at least to $250 instead of $300. They have to capture gamers and their wallets before the new PlayStation or Xbox is released because in the past, those systems have outperformed the original Wii and have caught up to Nintendo’s technology anyway. The Wii had a unique edge in the sense that its controller was motion-controlled. When the Xbox360 and PS3 released the Kinect and the Playstation Move respectively, Nintendo lost that edge. Sure some of their games are for the Wii only, but both other companies have unique games for their systems as well, like Halo and God of War. The point is, I don’t believe they’ve improved their system enough to compete with whatever improvements the Xbox and Playstation will have in their upcoming consoles. Not dropping the price could end up being a costly decision if other game consoles bring their “A games”. The bargaining power of buyers is high in this industry, as there are really only 3 companies making video game systems worth buying. Obviously, the rivalry among the established companies is extremely high as well. The fact is, buyers will switch consoles and the rivals will win in this industry.

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