Jado said:
Yes. There was a real-world example of a high-end guitar manufacturer (who's name I forget) in one of my marketing books. They lowered the price of their top of the ling guitars and their sales declined because their customers perceived it as a decline in quality and craftsmanship.
Absolutely, and this is marketing 101.
Price point says as much about your product as anything else you can market about it. And that's especially important in the technology center where people walk around with this idea that performance is based on standard prices of standard technologies and a higher priced item is always going to outperform a cheaper one.
I remember reading all the pre-Xbox and pre-GameCube comparison stories leading up to their near-simultaneous launches. They'd say that the Xbox was out there with a year of extra technology to go up against the PS2 at the PS2's price point. They'd get to the GameCube and would say it was meant to be a kidsafe PS2 that at $100 less than the competition was obviously not a serious entry for any hardcore gamer or videophile.
I'd argue that Nintendo's perception is the one thing holding them back. The public views their shit as out-of-step, less powerful, and not hip. Because of that view, most people don't even end up getting to their games. Shipping a console that costs $200 less than the nearest competition would lead journalists to jump to their own conclusions, like, "
Nintendo Gives Dead Gaming Console Slight Upgrade." That's exactly the stuff that Nintendo needs to avoid.
At this point they probably can't do much more than fine-tune the final hardware specs of the machine, but if they desire to go after any of the traditional gaming group at all, they do have to cross a certain threshold in order to be taken seriously. What I mean is that the hardcore needs to at least be interested in it if the casuals are going to slowly seep in and the market is going to start expanding through it.
I'd say an announced price of $199-$249 is just about the only believable number one could come up with based on what we know now. If there's a drastic change in graphical quality between now and launch, then I suppose it could swing $50 in either direction.