No price cuts... not just Sony.
Words of wisdom from Nintendo president, Saturo Iwata, made to a meeting of financial analysts in Japan, could be seen as supportive of Sony CEO, Sir Howard Stringer, 'No price cut' strategy for the PlayStation 3.
Speaking to the analysts following the release of Ninty's most recent financials, Iwata said the following:
"Of course, I have never said that cutting the suggested retail price (of the DS) is not in the cards. However, price cuts in one country can certainly affect other countries. For example, when you say that we should cut the price in Japan due to the current domestic market situation, once the suggested retail price is cut in Japan, people outside Japan will anticipate the same around the world.
"10 or 15 years ago, each country could decide its own price policy in the video game market, as you know, however, price policy has become a global subject in the recent years. So, any price policy must be considered with the aim to maximize our global business. Because of this, we do not think just in terms of Japan.
"Also, while the price cut is said to surely increase demand, it must be clear from a variety of analysis so far that the effect cannot last very long. Accordingly, if we really do enact a price cut, it must be exactly when it can maximize the business. At least for now, I have no specific ideas about the price cut at all."
While the insight into Nintendo's pricing policy (it's global) is interesting, the fact that price cutting is seen within the Japanese gaming world as merely short-term, and requiring exact timing is more so. Whether Sir Howard is listening - or simply has no choice in his pricing yet - is even more.
Source
Speaking to the analysts following the release of Ninty's most recent financials, Iwata said the following:
"Of course, I have never said that cutting the suggested retail price (of the DS) is not in the cards. However, price cuts in one country can certainly affect other countries. For example, when you say that we should cut the price in Japan due to the current domestic market situation, once the suggested retail price is cut in Japan, people outside Japan will anticipate the same around the world.
"10 or 15 years ago, each country could decide its own price policy in the video game market, as you know, however, price policy has become a global subject in the recent years. So, any price policy must be considered with the aim to maximize our global business. Because of this, we do not think just in terms of Japan.
"Also, while the price cut is said to surely increase demand, it must be clear from a variety of analysis so far that the effect cannot last very long. Accordingly, if we really do enact a price cut, it must be exactly when it can maximize the business. At least for now, I have no specific ideas about the price cut at all."
While the insight into Nintendo's pricing policy (it's global) is interesting, the fact that price cutting is seen within the Japanese gaming world as merely short-term, and requiring exact timing is more so. Whether Sir Howard is listening - or simply has no choice in his pricing yet - is even more.
Source
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