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Wal-Mart Talks Next-Gen Console Onslaught
simoniker writes "Wal-Mart game buyer Steve Perry discusses the U.S retail giant's approach to stocking both current-gen and next-gen consoles, including pricing, launch supply flow, and the availability of demo units for Wii and PlayStation 3. Perry also updates on what's been hot in Wal-Mart stores this summer: 'We've been really successful with Madden, that's been really good. NCAA has been great. Guitar Hero's been on fire. The new DS Lite, the colors came out a few weeks ago, those have done really well.'"
Yeah, I felt almost every question was answered with "We don't know" "We'll see what happens" "We're currently doing what we always do". The whole article could easily be summed up with "I don't want to commit myself to anything specific yet thats not already well known."
The only thing of any use in there was pretty much "Wal-Mart will stock game consoles this Christmas". Which if you didn't already know, you don't deserve to be here.
Regarding the PS3 price drop, the Wal-Mart buyer says "We'd certainly like to see parity on pricing, but we have not had that conversation with them yet."
That should be read as "Sony will drop the price to Wal-Mart, or else."
Bear in mind that this is one of the very few people whose position on price really matters. The PS3 is crucial to Sony. Wal-Mart doesn't really need to carry it at all, let alone give it much shelf space. In fact, the PS3 is a rather high-priced product for Wal-Mart. They can move PS2s at $129 (and that's the new slim-line PS2) in volume. The PS3 will be a niche product to Wal-Mart until the price comes down.
That slim-line PS2 is worth watching. That's a mid-life kicker for the PS2, and the first time that's really happened in the videogame console market. That could be the killer product for this holiday season. The Xbox 360 and the PS3 get all the press attention, but the downsized PS2 will generate the profits this season.
Did the interview come off extremly steril? Wal-Mart has the best supply chain in the business, and they are obviously taking that route with their game devision. I just have a feeling that this putting into focus everything that is going wrong with the gaming industry. Less focus on passion, more on lean manufacturing.
I buy all my new electronics hardware at Wal-Mart and for very good reason: return policy. I personally prefer Target but even their return policy leaves something to be desired when compared to Wal-Mart. PSP has a dead pixel? Not a problem. Just not happy with that new console? Not a problem. $1000 TV acting funny on you and don't want to deal with the warranty process? Not a problem. Full refund. I'm not the biggest fan of Wal-Mart but they really stick up for you when it comes to big ticket items being returned for refund/exchange. I would actually pay a little bit more to buy most electronics hardware from Wal-Mart (except for computers and laptops which I buy from Costco or Sams Club who each have massive 6 month return policies on those items).
If you think Wal-Mart is going to get left out of the console launchs this fall and not demo any of the new systems at all this fall you are sadly mistaken. Wal-Mart is all about making money and they know that for new consoles, demo systems help sell new console launches. I don't know where you heard this but I suspect someone has led you astray. I know people who work at Wal-Mart who have been talking about the Wii and PS3 launches.