In Japan, PlayStation 3 sales are surging, and the Wii is currently going through its toughest time since its launch. And that’s not coming from an analyst or news outlet; that comes from Nintendo Co. Ltd. President Satoru Iwata himself, who says “The current condition in the Japanese market is not the one we want.”
Naturally, the first solution people are going to think of is “cut the price,” but Iwata doesn’t think that entering into a price war with its rivals will really help anything, given that the company is already currently the marketing leader.
“A price cut in a difficult economy cannot really excite the market and drive up sales. As of now I really don’t think that a price cut is a good option for us,” Iwata told those in attendance at a news conference.
According to Enterbrain, Sony’s console is building momentum, beating out the Wii for the first time in 16 months. Meanwhile, Nintendo is facing a diminished demand of 63 percent versus the year prior.
So if dropping the price isn’t the solution, then what does Nintendo plan to do? Iwata stated that the Wii flew off shelves following its 2006 launch, thanks to a few games. However, he notes that “The speed with which people get tired of any new entertainment is faster in Japan than in overseas markets.”
And so the answer seems to be new software, as Nintendo is pinning its hopes on upcoming releases, such as Wii Sports Resort, for which he has given an approximate release time frame. Their hope is that such releases will energize sales of the console.