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.