Article comes from SankeiBiz, Sankei Shimbun's site for business news.
http://www.sankeibiz.jp/business/news/120925/bsj1209250935004-n1.htm
Nintendo will be releasing its next generation console, Wii U, in Japan on December 8th. The basic set is priced under 30000 yen, which many people related to the industry have evaluated as being "an appropriate price". However, a number of other doubtful voices have also weighed in, concerned with just how much Wii U's features will be accepted by users. Tests for Nintendo look to continue as they head into this critical holiday season, which will play a key role on their business recovery.
"Prices over $300 make for tough buys; another price drop will happen," said a worried person related to a developer, just prior to Wii U's price announcement. Many specialists had forecast that the price of Wii U would exceed 30000 yen prior to the price announcement. Reasons why included its high spec features such as the screen on the controller, along with various control options.
Nintendo's price for its premium model, which includes 32 GB of memory, charging stand, etc., did indeed exceed this 30000 yen threshold. However, the basic set did not, coming in at 26250 yen. "Setting a price was difficult. We thoroughly investigated what consumers have their eyes on," revealed a person related to Nintendo.
And while the price of Wii U has been well regarded, an unexpected factor now faces Nintendo. Sony Computer Entertainment, on September 19th, announced a new model for their PlayStation 3 console, featuring a smaller size, lighter weight, and higher memory. The console is set to release on October 4th in Japan, putting it head-to-head with Wii U during the holidays.
"To think that the release time-frames would overlap... We're always looking to do our absolute best to compete," stated a person related to Sony with a complicated expression on their face.
Nintendo have responded to this, emphasizing that Wii U would not be directly competing with the new PS3 model, as this new model does not offer any new features that previous models didn't.
A number of people have pointed out that the arrival of the new PS3 model will indeed affect Wii U's sales. A related person in the industry also explained that, given that the new PS3 model is also being sold at a price in the 20k yen range, there will be a considerable contingent of first time PS3 buyers. This same person also anticipates that there will be consumers during this holiday season that will be pressed to choose between buying a Wii U or the new PS3 model.
"Wii U might just be too new of a console for consumers. Even leaving aside the price, it's an unknown whether Wii U's various features will even be accepted or not," he pointed out.
Wii U draws a line between other, former consoles; offering new features such as the ability to play on two screens, as well as letting players exchange information with one another over the internet.
However, there are no guarantees that such novel features will widely permeate with users. Nintendo, troubled with slumping business, and having posted a net loss of 43.2 billion yen for the fiscal term ended March 2012, are aiming to recover with the release of Wii U. A number of challenges await them in the upcoming holiday season.
http://www.sankeibiz.jp/business/news/120925/bsj1209250935004-n1.htm