NEWS - Wednesday, August 6, 2003


Gamecube To Start Price War?

An article on CNNMoney provides insight and speculation as to what move the company will make this Thursday when Nintendo president Satoru Iwata will discuss the company's business strategy at a news conference. Here are a few interesting snips from the article. Nintendo has never been known as a particularly aggressive company when it comes to pricing. Sure, it follows suit when its competitors lower prices, but traditionally it hasn't been one to start a fight. The times could be a changin'. Disastrous GameCube sales in the company's first fiscal quarter, combined with the threat of losing retail shelf space, could prompt the company to knock $50 off the $149 console earlier than anyone expects. "Nintendo historically hasn't cut prices until there was enough volume to break even on the price cut," said P.J. McNealy, an analyst with American Technology Research. "They may have to change that philosophical position to stay competitive." "We're expecting the GameCube price to drop to $99 sometime in September," said Mike Wallace of UBS Warburg. "We're also expecting the Xbox and PlayStation 2 to fall to $149 by the end of September." Care to read more?? Read the rest of the article on CNNMoney.
Source: http://money.cnn.com/

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