Analyst: Nintendo likely to make Wii U price drop once time is right
Whilst Nintendo are currently contending with swooning consumer attention toward Wii U amidst the furore over the PlayStation 4 and Xbox One, they may need to perform another price drop to drive hardware sales.
That’s according to EEDAR’s vice president of insights and analysis Jesse Divnich, who, whilst indicating that such situations should only be considered by product manufacturers as a “last resort,” sees the potential for Nintendo to do so again once they can retain a profit on each hardware sale made.
“Even with the hardware constraints of the new hardware, Nintendo has their own battles to contend with but certainly they are not operating under favorable conditions with all the visibility and marketing the new platforms are getting,” Divnich explains.
“Hardware price drops should always be a last resort. They are permanent and have considerable impacts on the bottom line. That being said, price drops do increase hardware sales and both retailers and consumers will always pressure for lower price points, but it may not always be conducive to a healthy bottom line.
“I believe if Nintendo could drop the price without negatively impacting their bottom-line they would have. Once conditions are right, they are likely to drop the price again. We should anticipate a small uptick in hardware sales as Nintendo’s first party software has shown the ability to increase hardware sales.”