GDJustin said:
The sales show that the GCN dropping and becoming the same price as the SP didn't kill SP slaes at all. That's what this thread was about. The DS not doing well because it's price tag is the same as the Xbox and PS2. The sales data wasn't even about the GCN sales.
Do you even know what the hell is going on in this thread?
The GBA SP is pretty much the only handheld console on the market right now. As such, it has not been in direct competition with ANY console. If you want a handheld, the
de facto choice is a GBA SP, regardless of what console(s) you own. As such, I would expect GBA SP sales figures to be driven primarily by its own price, rather than being influenced significantly by console sales. Still, posting ONLY the GC vs. GBA stats is misleading -- if there is a point to be made, then posting the sales figures for ALL of the players is the way to go.
The difference now is that Nintendo has now introduced a new handheld...which means they are now COMPETING AGAINST THEMSELVES. I don't know what your business background is, but I can tell you that in most cases, this is NOT a good decision. The hope when you execute that kind of strategy is that a) your models have a clear stratification, b) do not significantly pull from each others' market share, and c) help you dominate the segment and keep your competitors out of the market. If those three things don't actually happen, you are probably facing trouble.
The original hypothesis is that the NDS may not sell as well as hoped this holiday season...although, quite frankly, I'm not sure the argument changes a whole lot if you look at the likely situation a few months from now. So, let's analyze things, hmm? Imagine that you are a casual gamer, already the owner of one console, with $150 to spend this Christmas on gaming-related purchases. What are your options?
If you really want a handheld, then you have two options:
1) NDS @ $150. Although it can play GBA games, it doesn't have any killer apps announced at the moment and is twice as much as...
2) GBA SP @ $80...which leaves you a bunch of money left over for games.
If your real requirement is for PORTABLE gaming, not specifically HANDHELD gaming, then the options get more interesting. The new PS2 design is ALSO $150, is considerably smaller, has a huge library of games, and is far more powerful than the NDS. If the desire is just for a new system, Xbox and GC also come into play.
Last but not least, there is no guarantee that the money has to go towards new hardware -- and given the surplus of intriguing releases this winter at $50 a pop, the realistic choice may very well be that our hypothetical consumer chooses to take home three A-list games rather than ANY system.
Personally, I don't think that Nintendo has done a good enough job separating the NDS from the GBA SP. With the price drop on the GBA SP, I strongly suspect that it will eat into DS sales.