coleslaw
05-08-2003, 04:19 PM
From planetgamecube (http://planetgamecube.com/news.cfm?action=item&id=4344):
Word is going around that the three major consoles are primed for a price cut, to be initiated at the Electronic Entertainment Expo (E3) in LA next week. The rumors are so strong at this point that major retail chains such as GameStop are now turning away console sales, telling customers to wait until next week. These same stores have signage in the back storeroom noting the price drop of the GameCube to $99, but they’ve been instructed to hold them until mid-May. Other chains such as FYE are selling consoles with game bundles to keep demand strong over this week.
When asked about the price drop, one GameStop store manager, who asked to remain anonymous, told PGC that he was not sure if these signs were made in response to information from Nintendo, or in anticipation of what might be coming at E3. “Last year, we were caught with our pants down, and had to make signs by hand. I think they don’t want it to look like we don’t know what’s going on.”
Typically, Nintendo won’t initiate console price cuts on its own, but will make them in response to pressure from other companies cutting their prices. Last year, Nintendo denied any plans to cut the price of the GameCube as late as three days before the eventual drop in price to $149 (from $199). In fact, all three console makers denied a price drop, Sony denying it just a day before they cut their PlayStation 2 price to $199 in response to an equal cut by Microsoft on its Xbox.
There are also some other major chains, such as Circuit City, reporting that they are receiving overly large shipments of consoles, too large to be simple restock. When this happened last year, it was the week before E3, when the last cuts were announced. The console manufacturers typically ship additional consoles to cover the demand when a price drop is announced. Nintendo is also publicly telling customers that inquire about the forthcoming Demo Disc that it will be packed in with GameCubes sold after May, which would be difficult to do without new consoles being shipped from the manufacturer.
The rumor of a $99 price is interesting, as it’s the same price that Nintendo’s recently launched Game Boy Advance SP is selling at. Many feel that a cut to $129 would be more appropriate and wouldn’t cut into the sales of the cash cow handheld system. At the same time, Nintendo is currently fighting for second place, and a price of under $100 would certainly spur sales of its home unit. GameStop is expecting that if Nintendo cuts the price of the GameCube to $99, the Game Boy Advance SP could drop to $79. Supplies of the popular redesign of Nintendo’s Game Boy Advance are still in short supply in many places, and a price cut on such a high demand item might seem to be ill-advised.
However, Nintendo has made price cuts on high-demand consoles before. Their Nintendo 64 console was cut by $50 just three days before that console launched back in 1996. Demand for the console was very high, riding on the very positive buzz on “Super Mario 64”, which would make Nintendo’s first entry into the 3D world. It’s possible that Nintendo would cut the price on the Game Boy Advance SP simply to maintain its dominant position, even when many stores can’t get the item in stock. GameStop has yet to ship any signage to its stores indicating a price cut for the GBA SP.
I personally don't see Nintendo making the move down to $99; $129 is more reasonable. I hope that this comes along with a GameBoy Advance SP price drop as well. It would be odd to see the GameCube and the GBA SP going for the same price.
I would think that Sony and M$ will be forced to follow suit if Nintendo initiates such a price drop.
Word is going around that the three major consoles are primed for a price cut, to be initiated at the Electronic Entertainment Expo (E3) in LA next week. The rumors are so strong at this point that major retail chains such as GameStop are now turning away console sales, telling customers to wait until next week. These same stores have signage in the back storeroom noting the price drop of the GameCube to $99, but they’ve been instructed to hold them until mid-May. Other chains such as FYE are selling consoles with game bundles to keep demand strong over this week.
When asked about the price drop, one GameStop store manager, who asked to remain anonymous, told PGC that he was not sure if these signs were made in response to information from Nintendo, or in anticipation of what might be coming at E3. “Last year, we were caught with our pants down, and had to make signs by hand. I think they don’t want it to look like we don’t know what’s going on.”
Typically, Nintendo won’t initiate console price cuts on its own, but will make them in response to pressure from other companies cutting their prices. Last year, Nintendo denied any plans to cut the price of the GameCube as late as three days before the eventual drop in price to $149 (from $199). In fact, all three console makers denied a price drop, Sony denying it just a day before they cut their PlayStation 2 price to $199 in response to an equal cut by Microsoft on its Xbox.
There are also some other major chains, such as Circuit City, reporting that they are receiving overly large shipments of consoles, too large to be simple restock. When this happened last year, it was the week before E3, when the last cuts were announced. The console manufacturers typically ship additional consoles to cover the demand when a price drop is announced. Nintendo is also publicly telling customers that inquire about the forthcoming Demo Disc that it will be packed in with GameCubes sold after May, which would be difficult to do without new consoles being shipped from the manufacturer.
The rumor of a $99 price is interesting, as it’s the same price that Nintendo’s recently launched Game Boy Advance SP is selling at. Many feel that a cut to $129 would be more appropriate and wouldn’t cut into the sales of the cash cow handheld system. At the same time, Nintendo is currently fighting for second place, and a price of under $100 would certainly spur sales of its home unit. GameStop is expecting that if Nintendo cuts the price of the GameCube to $99, the Game Boy Advance SP could drop to $79. Supplies of the popular redesign of Nintendo’s Game Boy Advance are still in short supply in many places, and a price cut on such a high demand item might seem to be ill-advised.
However, Nintendo has made price cuts on high-demand consoles before. Their Nintendo 64 console was cut by $50 just three days before that console launched back in 1996. Demand for the console was very high, riding on the very positive buzz on “Super Mario 64”, which would make Nintendo’s first entry into the 3D world. It’s possible that Nintendo would cut the price on the Game Boy Advance SP simply to maintain its dominant position, even when many stores can’t get the item in stock. GameStop has yet to ship any signage to its stores indicating a price cut for the GBA SP.
I personally don't see Nintendo making the move down to $99; $129 is more reasonable. I hope that this comes along with a GameBoy Advance SP price drop as well. It would be odd to see the GameCube and the GBA SP going for the same price.
I would think that Sony and M$ will be forced to follow suit if Nintendo initiates such a price drop.