Overview: As the current video game console cycle continues to slow and head toward an end, the transition to the next-generation of hardware will be marked by the launch of the Nintendo Wii U console in Holiday 2012. The video game console hardware market is a ripe subject for speculation, similar to what we now read and hear about with Apple and its next iPhone, iPad, etc. Our perspective on console launch prices, as well as price cuts for existing consoles, is that a deeper dive into the business model two or three layers down is warranted. This piece goes into great detail while tackling the five most important questions:
3. What happened to hardware sales following a console price cut or new console bundle?
4. When will console price cuts likely happen next and how much?
5. What price range has Nintendo historically launched products? Wii U pricing?
Topics covered include business model impact, marketing impact, supply chain, PR messaging, incremental buyers, cable and wireless business models, competitive analysis, Wii U pricing, Holiday 2006, Holiday 2012-13, business group goals, bundles, land grabs, analysis of historical numbers with a unique slant and competitive advantages and, likely next steps. Feedback is always welcome and appreciated.