Wii has a value drop

Which is what a price drop truly is. This time, a year ago, every Wii system was sold out in America. Now it needs a price drop? Something has gone catastrophically wrong on the Wii’s value in 2008 to 2009 for this to occur. (Could it be the ‘User Generated Content direction? Nooo, it can’t be that!)

Now, let us hear from Reggie from a Venture Beat interview in 2008:

VB: How did you view Microsoft’s price cut for the Xbox 360?

RF-A: They’re trying to get their consumer value proposition in line. Today, I have no need to adjust my prices. Consumers are voting with their wallets and pocketbooks. The Wii and DS are tremendous values.

So, by Reggie’s own words here from a year ago, this would mean that Nintendo needs to drop the price of the Wii to get the consumer value proposition in line.

Anyone who thinks this price cut is a good thing is either a third party company (who thinks their games will sell more, which is not true because if their games aren’t selling when the console is sold out, they won’t be selling now) or a forum dweller spouting cliches and platitudes in a make-believe effort to be a business analyst.

These are the same folk who, despite their paying attention to every ‘detail’ and ‘news story’ that comes out about the “Game Industry”, completely missed the Wii and never caught on to the ‘Blue Ocean Strategy’ or disruption until a complete and utter outsider (ahem) came online.

You either price cut or you fight disinterest. Nintendo is failing to fight disinterest which is why the price cut is occurring.