Microsoft recently created the Kinect gaming system, a console that allows for a person to be the controller. When Xbox released the Kinect gaming system the demand for the Nintendo Wii system went down, also taking away the Wii's first place best-selling position. Nintendo hopes that when they cut down the price of the Wii gaming system, in the next few months, more people will buy the Wii gaming system. Nintendo has been a large company in video games for a long time making it a well respect brand which means that Nintendo has many loyal customers. Therefore when the price of the Wii goes down the followers of Nintendo who could not afford the Wii before will now be able too, which ultimately creates a larger profit for Nintendo. Even though Nintendo is lowering the price of the Wii system I do believe that they will have to do more to win the first place position back from Xbox. There are rumors of a new console from Nintendo, although very little is known. If Nintendo creates a newer more advanced version of the Wii I believe they could take their first place position back from Xbox.
I agree that Wii’s profit decrease is because of the Xbox’s Kinect gaming system. I think that right now Nintendo is in a tough position because they thought that they had created advanced technology that would keep them running with a high profit for quite a while, but the Kinect came out and I think that it really shocked Nintendo. I think that cutting down the price of the Wii might help Nintendo, however I do not think that it will help much, because people who were going to get the Wii have already gotten it and the people who want a gaming system, who cannot afford something as pricey as the Wii would most likely save up to be able to by the Kinect. However, lowering the price of the Wii could potentially help Nintendo’s profit in the short run, but I do not believe it will help their profit in the long run. Although Nintendo is respected and has loyal customers, those customers are only going to be loyal so long as Nintendo’s products are top-notch. I completely agree that Nintendo will have to do more than lower their price on the Wii to get their first place position back from Xbox. Possibly make a more high-tech gaming system that could compete with the Xbox Kinect?
ReplyDelete-Analisa
Nintendo thought that by creating the wii their company’s demand would increase and they would be more qualified to compete with the other big gaming companies such as Microsoft's XBOZ. I think Nintendo may have put a little bit too much faith in the Wii. Although there was a large demand for the Wii and that Nintendo received a great amount of revenue Microsoft began to compete with them when they introduce the Kinnects gaming system. The Kinnect gaming system is far more advanced than the Wii and offers many more features. People naturally want to buy the most advanced and updated product because that want the most utility for their buck! Nintendo is going to need to come up with a big new idea otherwise they are not going to be qualified to compete with Microsoft. Until Nintendo comes up with a new product and since the demand for the Wii went down it would be wise for them to lower the price of the Wii. If Nintendo does not lower the price of the Wii than there will be excess supply of the Wii which in turn will cause a major decrease in profit. There will be a slight decrease in profit if the Wii price is lowered but lowering the price is still the most economically smart thing to do because demand will increase.
ReplyDelete-Lizzie
People's preferences, among technology products and brands, are constantly changing.This is because the minute a new product become available, people feel like they have to have that product and then leave all of the other products in the past, to suffer. Nintendo's attempt to make the best of the situation is their best option as of right now. Them deciding to lower their prices in an attempt to get the most possible out of the supply they have. Before the introduction of the Kinnect, the Wii was very popular and demand was extremely high. As a result, Nintendo's supply raised. But now, the demand has dropped but Nintendo is stuck with the extra products. Given the circumstances, Nintendo has made the right decision in regards to how they will proceed with their sales by trying to make the best profit despite the competition.
ReplyDeleteKate M.