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GameCube $99 Price Drop Now Official
Michael_Blessed writes "An MCV story confirms the official GameCube price drop
to $99, effective tomorrow. Strangely, this brings it to a similar pricepoint as the GameBoy Advance..." There's an official press release over at Yahoo which clarifies that the deal includes no bundled games, but "opens an $80 price advantage over its two console competitors", and quotes NOA President, George Harrison, as saying "So far in 2003, Nintendo GameCube is the only home console showing an increase in unit sales compared to 2002." We reported on Amazon's ahead-of-time price drop yesterday.
I don't know. I think there is a SGI system of a few years back that would be similear, and cost more than $90,000. I'm thinking something like a multi-way MIPS system at 90mhz from 10 years ago, with the specialized sgi graphics hardware.
Unfortunatly I've used the systems, but I have no idea how you would compare specifications to see if there was ever a system of similear power for more than $90,000.
The GameCube Specifications describe it basically as a 485 MHz PowerPC 750 (IBM's "Gekko"). This would be roughly analagous to a high-end PowerMac G3 or an entry-level PowerMac G4, perhaps something like the Apple PowerMac G4 Cube.
Yeah, I have a tough time buying the "$99,000" thing, because "A few years ago" was the year 2000, the same year the more powerful Apple PowerMac G4 Cube was released at 450 MHz, and the GameCube itself debuted in 2001!
MORTAR COMBAT!
Funny, we have George Harrison, as saying 'So far in 2003, Nintendo GameCube is the only home console showing an increase in unit sales compared to 2002.' ... and then you have Gamebiz
quoting Microsoft 'Quoting statistics from US market
research body NPD Funworld, the company claims that the Xbox is
the only console which has continuously demonstrated positive
market share growth in the past year, while sales of software in
August grew faster than either of its rivals and boosted the
console's attach rate to 5.8.'
Of course, I take that chest beating from Microsoft with a grain of salt.
Regardless, I think Nintendo's really going to break even on profit of GC hardware sales, and it will make it's money on its own first party software sales. The upcoming war now is for second place market share, especially during Xmas, when parents are shopping for that Xmas present for the kids (and themselves).
It almost seemed that Nintendo played the right strategy all along. It didn't want to compete against Sony directly, it's made a nice niche for itself with it's specific genre of games (that does not suit everybody, BTW).... and it's price point can't be beat.
Microsoft is in a precarious position. It's still hemorrhaging money from it's price war with the PS2. It's too far behind in market share wih the PS2. Now, it can't possibly compete against Nintendo's new price, and it's too late to offer kid games (especially touting kid games that are cross platform [Harry Potter]?). What's poor Microsoft to do?... and for that matter, what's with all the bad press about Nintendo 'struggling'?
According to an article on IGN Cube [ http://cube.ign.com/articles/451/451364p1.html?fro mint=1 ] Harsison, VP of marketing and communications had a conference call with media reps and such. Durring the call he fielded questions, and IGN posted quotes of the call. Here are some of the choice picks:
"This is an aggressive move by Nintendo. This is an indication that this generation of consoles is about to enter the mass market."
"We believe this [GCN price at $99] is the best value in the history of videogames."
"Between now and the New Year more than 100 new GameCube titles will hit the shelves."
On GBA and GCN now selling at the same price: ""I don't think it creates a problem. In fact, you can buy an SP and a GCN for the price that you now pay for a PlayStation 2 bundle. We continue to sell as many GBAs as we can get."
And, perhaps most interesting to those without GC's or (like myself) those with but still interested in how Nintendo is planning their marketing strategies:
"We don't have any plans to do any software bundles."
Personally, I think this is a poor choice. Even a Player's Choice bundle worth $20 (with Star Fox Adventures, Pikmin and Luigi's Mansion now at $19.99) there's a mental bonus to getting a system with a free game. And, as far as I know, those games are not huge sellers so I doubt Nintendo would lose a huge number of game sales from the deal...
Also of intrest, Harrison said, "GameCube production will begin again later this fall."
-Trillian
Many analysts have faulted the Gamecube for it's inibility to play DVD's. However, the gamecube's narrow focus as stricktly a gaming machine has enabled it to go to a pricepoint that Sony and Micrsosoft (probably) won't match.
Imho, $99 put's the gamecube in the "impulse buy" range. Also, Nintendo now has a line of budget titles. This might be the gamecube's turning point. Certainly not a level of success on the order of what the ps2 has seen, but perhaps a rehash of the situation with the N64 -- the market was big enough to attract developers and turn a profit.
How much are used gamecubes now that the price has gone down, at places like EB? They were $100 used and $150 new... Does that mean a used GC will go for $50? Probably higher, which makes it not worth it to go used.