Sunday, August 7, 2011

Article: Nintendo 3DS and cutting

After the news was already leaked on the net thanks to usual well-informed official, now for some time that the Nintendo 3DS subir a drastic price cut. At the time of writing, the exact figure was not discount still communicated, but since in North America from $ 250 to $ 170 passer there to expect something similar to the old continent.


The cut took all by surprise, particularly those who have bought the Nintendo by and everything there that will get in return for the free game will some disorder.


As all of you, as consumers are happy, because an object that I could buy now costs less, but if we think at the time of the year, the absence of direct competitors and the short distance from the day on which blooming QSGathe 3DS was launched on the market,


If we analyse the context and we await us here a few months, the choice of Nintendo doesn't appear so absurd, but you have to consider many aspects completely different between them. Not the first time that the Big N lies in this situation, and on that occasion the Nintendo rivaleggiarono with the Commander of the Titanic as a foresight. Decisions were taken, in some ways similar to those of today, which led to a failure of atomic name Virtual Boy, but proceed with order.


Usually, when a company decides to cut the price it does so for three reasons: attack, defend or compensate for a downturn in sales. Because no one cuts the price of a console that has no competitors and no one cuts the price of a console that sells well. In the first two cases, cutting varies from 15% to 30% compared to the original price, and is decided when a new console on the market or to move or consolidate further sales volume.


Part of this category is the Playstation 2: 1 that the first abbass the price of a third after about a year since the launch, while the second wait for two. We find then the Nintendo 64, which was granted a fourth after about six months of life, and the game boy, that was cut only after three years, coinciding with the release of the Game Gear.


In the third case cutting rarely less than 30%, and takes place within six months of life, when analysts realize that their creature does not sell as hoped and we must change something before the prospect of bankruptcy begin to materialize. Only the PSP has chosen not to go this route, despite the initial sales were not so exciting, and then only after two years Sony decided to ritoccarne the price.


To date, only the first Xbox is approached as the size of the discount, as you did with the 3DS, but the situation was totally different.

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