Monday, September 17, 2012

The Pricing Chess Game of the Eighth Generation





Upset about the launch price of the Nintendo WiiU? Have no fear, for I know exactly when the price cut is going to occur, and I will tell you exactly when they will start selling those GamePad accessories individually. If you look into the past a little you’ll see a similar thing brewing today.


Back in March 2011 the Nintendo 3DS launched at a rather high $250, especially when you realize the original Game Boy launched at $90 and the Game Boy Advance a decade later launched at just $100. Many critics questioned why Nintendo went so high up on the price when the other handhelds had been more successful and profitable with prices far below $200. Even the sales were lacking a bit because of it—even though the lackluster lineup of games also wasn’t helping.

And then the Vita happened.

Sony decides to match the price of the 3DS at $250, while offering superior graphics and a slew of potentially awesome goodies. What happens next? Nintendo drops the price a few weeks later and before you know it the 3DS winds up costing a mere $170. Even though this was still higher than any handheld launch—even the DS, it destroyed all momentum of the Vita. Everyone flocked towards the 3DS with its new price, new attitude, and suddenly-powerful lineup of games. Currently the best-selling game in the world is a 3DS game, and Nintendo owns 87% of the handheld market share. Even though the phones and tablets are competing better than ever before, the 3DS has sold 20 million copies since March 2011.




So even though the 3DS will definitely not match the DS lifetime sales, being on pace to hit 40 million in three years isn’t shabby at all; particularly when you look at the Vita, a handheld that is gasping for air with just 2.8 million under its belt and no price drop beyond the horizon.

So what does this have to do with the WiiU?




All the signs are pointing towards repetition. The launch doesn’t have many first-party hard-hitters besides Mario and (sort of) Pikmin. So where is Zelda, Pokemon, Metroid, Kirby, F-Zero, Fire Emblem, and maybe even Earthbound? Waiting for the PS4 and Xbox 720. It is as simple as that. Nintendo is waiting for when the competition decides to move to the eighth generation, reveal their machine, reveal their price, to then shift into the next gear. In this waiting game, the best time to throw a nice price cut is when the others reveal their launch prices. The best time to bring out the long-anticipated Zelda HD, Metroid HD, Pokemon HD, and Mario 3-D HD is around that same time as well.


The Xbox 360 was at around $400, and the PS3 at one point was past $500. Argue all you want, Microsoft and Sony will aim their launch prices at around the same range. There is absolutely no way no how that the next-gen systems will push for a $350 launch---there is no way. And even IF they do, guess which system will suddenly drop into the $250-$275 range: Nintendo’s WiiU. Guess which other system might drop: the Nintendo 3DS. And guess around which time we will see news and/or releases of Nintendo’s more prominent franchises— around launch time with the Microsoft and Sony consoles. The advantage Nintendo has this time is a more established base with the WiiU being around for at LEAST one year, after all the Xbox 720 and PS4 will be looking at a late 2013-early 2014 revelation regardless.



So if you are upset or too financially-strapped to get a WiiU, don’t fear. That inevitable price drop will happen—right on the heads of the competition.

Friday, September 14, 2012

The Light Missteps of the WiiU Conference




The WiiU finally got its price, its release date, and a little preview as to what games you’ll be seeing in the first couple months of its lifecycle. They had a special conference a couple days ago in New York full of guest stars and Reggie Fever. My prediction was the $300 and I was half-right—because the basic pointless bundle runs you at that price. The full WiiU package, included with Nintendo Land (essentially the WiiU version of Wii Sports) a subscription and a few other goodies costs $350. The release date is the 18th of November as opposed to my predicted 19th. Now, I have a gripe with the pricing of the system.


The rumors are jerking around that the WiiU is marginally as powerful as the PS3---which echoes the hardware of the Wii which had harbored graphics that barely beat those of the Nintendo Gamecube. If you are going to toy around with a system that isn’t as powerful as you had promised, and instead looks like a Wii on steroids—why gamble with the $350 price tag? The Wii’s success was perfect because the $250 price tag was perfect for the casual crowd as well as the hardcore—and it justified the hardware limitations. Jumping up $100 and repeating the same launch issue may entice the hardcore crowd to wait a little and see if Microsoft and Sony will react—and entice them to wait.


The second issue is, if it barely beats the PS3 and 360, what’s the motivation to getting the WiiU right now? The only exclusive that can really shift sales is Super Mario Bros. U, and in recent times its become more a casual franchise as opposed to one for the pure gamers. Almost all the third-party games are those that have already/will come out for the other systems with the exception of the controversial Bayonetta 2. Becomes very difficult to entice the pure gaming crowd with this bunch of games.


And that’s where the conference also failed miserably. If you are going to drop that hefty price when the competitors with already established game lineups and good outlook of upcoming (slightly similar) games are lingering, you better deliver some good news. Nintendo Land was not good news, and the Nintendo TV feature was more gimmicky than anything—although I personally liked it and know it will appeal to those that spends good amount of time watching television. They should have started the conference with the trailer showing all the games that will be available in the launch window and then focused on…GAMES!!! Save the television stuff for another time---Nintendo owners have been starving for consistent barrage of games for about three years now. Nintendo Land was not the solution.





(this should have been displayed first)


The only thing Nintendo got right on the fabled September 13th conference was the release date. But the price is too high; they focused on all the wrong things, delivered the trailer long after we were almost sleeping during this presentation, and lastly no surprises. Nothing to get us excited for in 2013. No Zelda. No Metroid. No F-Zero. No 3-D Mario. And lastly, no 3-D Pokemon. Bummer. The WiiU will see some success in November, but not as much as it could have been with a better price and a better focus on the audience it had lost in recent years.



P.S. That being said, Lego City: Undercover looks like its going to be a heck of a guilty pleasure.

Tuesday, September 4, 2012

Nintendo WiiU Launch: Dreams and Predictions



So by the end of this month, Nintendo will (hopefully) reveal their price tag and their release date. September 13th is when the big announcement will be made, some of the speculation will die down, and more questions will pop up----and let’s not forget the competitors and how they might react. The big rumor is that the Sunday before Black Friday (that terrible, terrible day) is when the WiiU will be released, right after Halo 4 and the latest Call of Duty. But nothing is yet certain. What I am about to reveal is my personal opinion towards when it should launch and as to how much it should be, and what I am expecting it to be.


My Price and Release Date:

WiiU: $250 (Bundled w/Nintendo Land)
$300 (Bundled w/Nintendo Land and Super Mario Bros. U)
November 23rd


The rumor is the 18th, which is the Sunday before the Dark Weekend starting with Black Friday is the release date. For me, the only reason I wouldn’t do it on Sunday is because the launch number won’t be as mammoth as opposed to if you were to deliver it at midnight of Black Friday. Transform Black Friday into WiiU Friday. Conquer, own, utterly take over one of the biggest economic weekends in the entire year. Halo and Call of Duty are going to devour sales throughout November, so the easiest way to not get swept up in the first-person shooter hurricane is to seek shelter on the 23rd.

As for the price tag. This is the truth: the economy isn’t that great, the system is technically 5 years behind in terms of certain technology, and there is far too much rising competition with the rise of mobile and tablet gaming. The Wii launched at $250 and did perfectly fine, especially when bundled with a game that made up for the lack of software during the first year of the Wii. $250, launch with Nintendo Land to practice the tablet-style gaming and the technology that follows, and make sure to have Mario and Call of Duty ready at the exact same time. Just the fact that Nintendo is finally in the HD realm is enough reason for a purchase, but to start nice and low at $250 would be icing on the cake. The other reason why it should not be more than $250: those tablet controllers will be at least $60 and expect the video games to run at similar prices.


Prediction of Price and Release Date:

$300 (Not Bundled)
November 19th

Sunday would not be a bad idea, and to launch right before Black Friday is something I can see Nintendo doing. Black Friday is definitely the due date, but giving the system a few days extra despite not delivering blockbuster-style numbers that Americans and Economists love to see would give some breathing room to shoppers that avoid that awful weekend like the dickens. Call of Duty launches a few days prior, so not delaying the WiiU installment too long would be good news. I can see the 19th, nothing earlier and nothing later.

Sadly, I don’t see a bundle in its future, even if Nintendo Land could be the Wii Sports-like game for the WiiU. That being said, the list of launch games is arguably the most impressive since the N64---which featured the gaming culture-changing Super Mario 64 among other instant classics. This would make the $300 price tag a little more bearable for the pockets as there’s plenty of software to choose from the getgo. My main reason for predicting $300 is because the 3DS last year launched at $250. Would Nintendo honestly launch an HD system at the same price as a 3-D handheld? Doubt it.