Price Latest Weapon in 3-Way Console War
September 27th, 2006 by Kit AllenCode Name Revolution noticed an interesting article from the Washington Post. Excerpts as follow.
Adam Sessler, a game expert with U.S. cable network G4 who was in Japan for the show, believes PlayStation 3 no longer has the leadership position it once had, and is likely to face a tough job fighting rivals this time.
“If you still don’t know which console to get, wait and see,” he said. “Give it another year.”
The Wii, which analysts say has the potential to appeal to gaming novices with its wandlike remote controller that’s swung around like a tennis racket or fishing rod, also has a pricing advantage: It will sell for $250 in the U.S. starting Nov. 19, and for 25,000 yen when it starts selling in Japan Dec. 2.
Analysts say the initial shipments of the PlayStation 3 and Wii are almost certain to sell out. The number of machines is limited at the start, and a loyal following of game fans is likely to snatch them up.
Sony, which is planning to ship 6 million PlayStation 3 machines by end of March 2007, has said it will only have 400,000 units in the U.S. and 100,000 in Japan for the launch.
Nintendo, based in Kyoto, plans to sell 6 million Wii consoles during the fiscal year ending March 2007 but has declined to say how many machines will be available on the first day.
“It’s not going to happen overnight. This is a five-year-battle,” said Hiroshi Kamide, director of research department at KBC Securities Japan in Tokyo, saying that at least 18 months are needed before a likely market leader emerges.
Kamide believes Wii could emerge the surprise winner, partly because of its pricing. Nintendo lost out in the earlier home console battle with its previous GameCube, although the Kyoto-based manufacturer dominates the market for handheld gaming devices with its Game Boy Advance and Nintendo DS.
“This is going to lead to a revitalization of the entire gaming industry.”
