You heard it here first, ladies and gentleman! My previous post on March 31st of this year, Despite Sony’s Denial, PS3 Price Cut Inevitable, says it all. Here’s a quick recap:
March 30th: Sony executives cut the price of the PS2 but adamantly denied that they would even think about cutting the price of the PS3, despite economic conditions.
In response, I said that unemployment would keep rising. As a result, more parents would be home with their kids, Nintendo Wii would become even more popular – it’s already the most popular of the 3 consoles due to its social and family oriented platform and games – which would continue to put pressure on Sony and PS3. As such, a price cut for the PS3 would be announced by Christmas time at the absolute the latest.
Fast forward to the NPD report released late yesterday evening regarding video-game sales for the month of April. Now, sales of just about everything got hit, especially hardware and console sales, but just take a look at the numbers. According to the report, Nintendo Wii sold roughly 340,000 units, which is just under twice as many as the 175,000 Xbox 360’s that sold in April. But it’s almost 3 times as many units sold as the 127,000 PlayStation 3’s! So what do Sony execs announce today? Price cuts may be coming.
Oh how quick Sony changes its tune when sentiment about this economic “rally” we’ve been having turns just a bit sour. Keep in mind, on March 31st, the markets, stocks, and economic indicators had all been moving in the right direction, (finally!) for 3 weeks straight. And the stock price – my goodness! – Sony (NYSE: SNE) had gone from as low as $15.64 on March 9th to as high as $21.35 on March 30th, the day they made their emphatic denial regarding a price cut. I mean I get it, you know, regaining 36% in your stock in 3 weeks, that’ll make you feel a little arrogant, a little powerful. I get it. But now that rally is flattening out, and today’s reversal by the electronics powerhouse is quite possibly the purest lesson anyone in business can learn about the hubris of success.
When you’re on top, plan for the dips and don’t get cocky! When things look dismal, keep your head because that’s when fortunes are made. Looks like Sony had a problem with the former, while Nintendo’s been focused on the latter. Despite, the 43% drop in sales on a month-over-month basis, Nintendo Wii was still the number one selling system, and the top four selling games in April…all made by Nintendo. Seems as though their strategy of focusing on the social and personal aspects of usage that a player can get out of the Nintendo Wii console is working in bringing Nintendo out of eternal adolescence and into adulthood, as Nintendo products and games have been widely known to be void of extreme and graphic violence, and catering mostly to the younger generation of gamers.
The new Nintendo, all growed up, certainly doesn’t seem shy anymore when it comes to blood, guts, and gore, just take a look at the recently released MadWorld. Just to give you a sense of it, you have to enter your birthdate into this GameStop website link before you can watch a video of or even about the game. (I love it!) I have to admit, I was and still am a diehard PS3 fan, or “fanboy,” or whatever you want to call it, but even I broke down a few weeks ago, and added to Nintendo’s sales numbers when I got my own Wii along with MadWorld, and a few other games and accessories. I know, I know, for hardcore PS3 players and advocates, this is akin to joining the “Dead Rabbits” while living in the Five Points, but I have a pre-teen little brother that I look after often, and a girlfriend that used to complain about video games, but couldn’t stop playing Mario Galaxy at Best Buy, even after we were done with our purchases.
Nintendo Wii + games and accessories = $400.
Playing Mario Kart with your girlfriend and little brother for hours while reminiscing about your childhood – when you looked like you were having a seizure, jumping and moving with the 64-bit characters of the original NES or Sega Genesis (when it certainly didn’t help move the characters the way it does with a Wii) = priceless!
Don’t get me wrong, I still love and play games on my PS3. But right now, Wii definitely has the “1-Up” in my household. However, for those that want and don’t have a PlayStation 3 due to its high price, it’s certainly looking more like a price cut of at least $100 could be here by Summer’s end. Maybe even Sony will try to create some of its own “fireworks” for the Fourth of July…