EDN Senior Technical Editor Brian Dipert exposes, analyzes and
opines on diverse topics in technology.
Aug 14 2007 3:12PM | Permalink | Email this | Comments (62) |
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Having just filed my September 27 issue feature article first draft (phew!), I'm going to strive to spend the next few weeks whittling down my perpetual 'to-blog topics' list (which, I regularly need to remind myself, is a good problem for someone in my profession to have). I realize that I write about game consoles quite a lot; for any of you who are wondering why, I'll begin this particular post with a short justification list:
With that big-picture perspective out of the way, I'd like to now focus specifically on the earlier-mentioned Nintendo Wii. Launched in major markets in mid-November, 2006, it experienced the same initial shortages and long lines of interested consumers as did its competitors. However, whereas the Xbox 360 (launched one year earlier) and the Sony PS3 (launched at roughly the same time) are now abundantly available and have both experienced one round of price cuts so far, the Wii is still selling for its original price and demand still outstrips supply.
Why? Granted, Wii Sports is a lot of fun; bundling it with the console (along with creating it in the first place) was a stroke of brilliance on Nintendo's part. But neither Nintendo nor any of its third-party partners has yet come up with a follow-up 'killer application' for the console, aside from perhaps the until-recently-free Opera web browser. And frankly, everyone I've talked to who owns a Wii (and I've actually talked with quite a few Wii owners the past few months) admits that the console's now sitting in their entertainment center collecting dust. The Wii Sports novelty wore off after a few (or, for the truly hard-core, a few dozen) playings.
So again: why? My theory: clever marketing. One of the most effective ways to cultivate demand for your product is to create and perpetuate (as long as you can....keep reading) the perception of a product shortage. It's what some folks accused Apple of doing with the iPhone (I'm not one of them; if anything, I think Apple was abnormally quiet in the months leading up to the iPhone launch, but then again Apple didn't need to say anything when the popular media was already frothing about and creating 'buzz'). And, I suspect, it's what Nintendo's doing with the Wii.
Now granted, Nintendo's like any other company; it doesn't want to spend a lot of money overbuilding manufacturing capacity that'll just sit dormant and in mothballs once the resultant supply overshoots demand. It's a balancing act. But c'mon....9 months after introduction, no stream of content 'hits' to keep stoking consumer interest, and you still can't be guaranteed of finding a console on your favourite retailer's shelves? If it's not clever marketing, it's incompetent product management.
Regardless of the root cause of the lingering shortage, Nintendo's walking a tightrope here, and if it's not careful it'll have a dramatic fall. At some point, potential customers are going to hear about all the Wiis collecting dust in their neighbors' and relatives' homes. They're going to get tired of waiting for their own Wiis (if they're not already), and unless Nintendo or a partner delivers another game home run (with all due respect, I don't think Wii Fit is it), consumers are going to scratch the $249.99 Wii off their to-buy lists and pick up a $279.99 (new) or $189.99-plus-free-game (refurbished) Xbox 360 Core system instead. I guess it's a good thing for Nintendo that the Wii's profitable and therefore doesn't require lots of subsequent title sales to fiscally pull the corporation out of a typical, initial console-created loss 'hole', huh?
Agree or disagree, Nintendo fans, critics and dispassionate observers?