Why don't more companies do this when they launch a new console?

[Nicholasp27]

and again, who would be pissed off if Nintendo had released 100k gold wii+gold zelda+gold wiimote/nunchuk combos for $500-600 at launch?

[Thanir]

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and again, who would be pissed off if Nintendo had released 100k gold wii+gold zelda+gold wiimote/nunchuk combos for $500-600 at launch?

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I think a lot of people if there wasn't regular units for them to buy instead...if this were the only thing available most people would scoff and laugh at it. Also these companies are having a hard enough time producing enough of their regular units...why would they try to produce a 'special' 3rd unit (since ps3 and 360 already have 2 skus). Produce more regular units so the ppl who want them can get them and I'll be happy.

The main goal of these companies is to get as many units into the homes as possible, so they can sell software and gain marketshare so when the system costs come down they can recoup some of their earlier losses (and yes I understand that nintendo doesnt work this way.) By alienating people (low launch numbers/high prices) you start to lose potential buyers who will now find another alternative. The general feel is the ps3 is going this way. How many of us who were really excited about the ps3 are now taking a 'wait and see' approach...I know my friends and I all are. In fact I will be buying a Wii before I buy a Ps3, and I am not a nintendo fan at all. A large part of it is the price point and the availability...not to mention it looks like fun.

[blackize]

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and it's not going to the most loyal, but to the most price insensitive customers...and those who care about the status of having the 'ultimate ps3'

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The problem is that the price insensitive consumer isn't the one who is willing to sit out in the cold for 3 days to get a system. People are willing to pay 2k on ebay for the convenience of it. I can't imagine anyone with the time, the money, and the desire to camp out and buy an overpriced system.

[gusmahler]

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By alienating people (low launch numbers/high prices) you start to lose potential buyers who will now find another alternative. The general feel is the ps3 is going this way.

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Thing is, the PS3 is priced the same now as it will be in February 2007 (random month in the future where presumably, Sony will be able to make more consoles).

Would Sony really be pissing people off if they announced ahead of time that the PS3 will be $1k until production ramps up in February, when it will be reduced to $600?

In my mind, it is more honest of them. By making it not a full release, all they do is make a profit for those who are willing to wait in line on release day. But if they made it a limited release, but made it more expensive, they keep the profit for themselves.

[Nicholasp27]

they won't need to camp out since it'll be available in the stores until it sells out; those who are willing to pay that much will buy it when they get to the store; if enough people are willing to camp out and pay that price, then they will camp out; if not, it'll sell out when stores open in the morning

so how is that a problem?

[Nicholasp27]

if Nintendo had 100k gold wiis and 300k normals, then nobody would be any more upset than they already are at the fact that there are shortages

the 100k would sell out opening day just like they woulda if normal, so all it did was allow big zelda fans to get a nice package and make more money for NES

[econophile]

nich,

console prices do change over time, just not as fast as other things that you are mentioning. look at what a ps2 retails for today vs. when it was released? does that reflect a difference in production cost or was the initial price higher because sony wanted to charge serious gamers more?

[Nicholasp27]

yes, console makers drop prices on consoles not based on cost, but based on consumer behavior; when the wii stops selling at a certain pace, nintendo will drop the price, but as long as it sells above a certain threshold, they will keep it the same


but i'm not talking about changing the entire console's price...i'm talking about creating a 'limited edition' product in order to segment the market and price discriminate, getting more money from those willing to pay more

people who care about having the 'ultimate ps3' or the 'gold wii' more than $$ will give more revenue to the company while the segment of consumers who just care about playing the games on the console and are sensitive to price will buy the standard console; everyone wins and the console company makes more money

it's used in pretty much every industry these days

golf ball makers sell the premium balls for $x to people who want the best and don't care about the price; they then sell 'x out' ones that have a black X on them in magic marker for having 'small defects that won't effect the performance'...all they did was put an X on those; there is no other change; but they sell those for less to those who are unwilling to pay the top dollar for 'a non-defect top rated golf ball'...that's how they segment the market

u'll never make as much money as u can if u charge all customers the same amount for your products or services, as different customer segments are willing to pay different prices...so u must find ways to legally charge one segment more than the other for the same basic product/service...

a gold wii is just one example i've come up with, but there are many other ways they could do it; the key is to do it, tho

they already have done it somewhat with having 2 models: 20gb and 60gb, but they could optimize it even further