Post by kelvin on Dec 19, 2006 10:25:13 GMT -5
URL: ce.seekingalpha.com/article/22600
Nintendo's Wii Plans Prove Problematic for Sony
Posted on Dec 18th, 2006 with stocks: NTDOY.PK, SNE
Davis Freeberg submits: It’s looking less and less like a Merry Christmas for Sony (SNE) Executives. After suffering from shortfalls on their PS3 and being caught red handed trying to pull off a flog, they now have to worry about an upcoming price war with the Nintendo Wii(NTDOY.PK). Already the Wii has proved to be popular beyond anybody’s expectations, but a price cut would be a knife to the heart for Sony’s PS3 plans. It’s unique game control has made it the must have gift of the season and already it’s next to impossible to find.
You’d think with all that buzz and a lower price point to begin with, that Nintendo would be happy to enjoy the lead they’ve taken on the PS3, but if you believe the rumors circulating among the blogosphere, Nintendo has more heartburn in store for the other consoles. In a move that neither the Xbox 360, nor the PS3 could match, Nintendo is rumored to be considering a price decrease on their Nintendo Wii starting in spring 2007. They are also expected to unveil Wii’s in various colors as well.
If this turns out to be true, it’d be terrible news for the PS3. At $600 a pop, the PS3 is the most expensive console ever launched and while it’s already proven to be popular with the hardcore gamers, it doesn’t offer much appeal to the non-core gamer who wants a more interactive experience. To make matters worse, if you compare the graphics on the PS3, you’ll find that it doesn’t offer a significant advantage over Microsoft's (MSFT) Xbox 360, which has already been out for a year. Between the Wii’s early buzz and the expectations that the Xbox 360 will hit 10 million consoles by the end of the year, Sony already has quite a bit of catching up to do. If it turns out that Nintendo isn’t afraid to engage in a console price war, Sony will face a tough challenge in maintaining the lead they built with their PS2.
Nintendo's Wii Plans Prove Problematic for Sony
Posted on Dec 18th, 2006 with stocks: NTDOY.PK, SNE
Davis Freeberg submits: It’s looking less and less like a Merry Christmas for Sony (SNE) Executives. After suffering from shortfalls on their PS3 and being caught red handed trying to pull off a flog, they now have to worry about an upcoming price war with the Nintendo Wii(NTDOY.PK). Already the Wii has proved to be popular beyond anybody’s expectations, but a price cut would be a knife to the heart for Sony’s PS3 plans. It’s unique game control has made it the must have gift of the season and already it’s next to impossible to find.
You’d think with all that buzz and a lower price point to begin with, that Nintendo would be happy to enjoy the lead they’ve taken on the PS3, but if you believe the rumors circulating among the blogosphere, Nintendo has more heartburn in store for the other consoles. In a move that neither the Xbox 360, nor the PS3 could match, Nintendo is rumored to be considering a price decrease on their Nintendo Wii starting in spring 2007. They are also expected to unveil Wii’s in various colors as well.
If this turns out to be true, it’d be terrible news for the PS3. At $600 a pop, the PS3 is the most expensive console ever launched and while it’s already proven to be popular with the hardcore gamers, it doesn’t offer much appeal to the non-core gamer who wants a more interactive experience. To make matters worse, if you compare the graphics on the PS3, you’ll find that it doesn’t offer a significant advantage over Microsoft's (MSFT) Xbox 360, which has already been out for a year. Between the Wii’s early buzz and the expectations that the Xbox 360 will hit 10 million consoles by the end of the year, Sony already has quite a bit of catching up to do. If it turns out that Nintendo isn’t afraid to engage in a console price war, Sony will face a tough challenge in maintaining the lead they built with their PS2.