Originally Posted by Spirit Icana:
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Ah, you got me there. But I think everybody knows what I meant. They are submitting to defeat. Dropping the price means they have given up their war on Wii's value. Quitting is the same as defeat.
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You keep using the word 'value', but value is totally relative to the buyer. People who found the Wii valuable at its current price already own one. Huge sales dips tend to indicate that the market of people who agree the system has value is dwindling. Dropping the price = potentially larger audience, ie; those who felt the system was overpriced to begin with.
How is this a sign they are defeated? It’s a consumer market. Your object is to sell your product to as many people as possible, and when one market is extinguished alter your product/marketing/price in some way to appeal to another market.
People who already own a Wii don’t matter. They already paid for the system. How they feel about a price drop is irrelevant. It’s the people who don’t own a Wii that matter, and if they don’t own one due to competitive pricing from other systems, or simply because they think the Wii is too expensive, then dropping the price and/or bundling with more content (essentially the same thing) is the best way to hook them in.
The fact the Wii has stayed at full price for all this time does not show they are defeated. It shows they outlasted both Sony and Microsoft. If they drop the price now, they’re still the last to do so. Wouldn’t that mean they ‘won’?