Anyone else see a DS price drop happening on PSP launch day?

[DaBargainHunta]

NOTE: This is strictly speculation on my part - I haven't even heard a rumor indicating anything like this.

Am I the only one who thinks Nintendo will counteract the PSP by dropping the price of the DS on or around the PSP's launch day? It would certainly win a few converts to the DS side from the people who are currently on the fence about which portable to buy.

What do you guys think? Do you see something like this happening? I personally think that Nintendo would be foolish NOT to do this. It would be an absolutely brilliant strategy and a major blow to Sony.

[Oobgarm]

Check these threads, much info contain therein:

http://www.digitpress.com/forum/viewtopic.php?t=46477

http://www.digitpress.com/forum/viewtopic.php?t=46455

http://www.digitpress.com/forum/viewtopic.php?t=46492

[DaBargainHunta]

Check these threads, much info contain therein:

http://www.digitpress.com/forum/viewtopic.php?t=46477

http://www.digitpress.com/forum/viewtopic.php?t=46455

http://www.digitpress.com/forum/viewtopic.php?t=46492
Unless I missed something, while those threads are very informative and entertaining, they don't specifically address my speculation of a DS price drop on or around the PSPS's launch. I think it would be a brilliant tactic on Nintendo's part, and I'm interested in hearing other people's thoughts on this potential business strategy and the likelihood of it happening. Of course, just to reiterate, this is purely speculation on my part - there are currently no rumors about any such price drop (yet).

[GobopopRevisited]

No... Took almost 2 years to drop GBA SP price.

DS will do fine as long as Nintendo manages to squeeze out a few of the bigger games out between Now and March. Plus 150 isn't a bad price at all.

[zmweasel]

NOTE: This is strictly speculation on my part - I haven't even heard a rumor indicating anything like this.

Am I the only one who thinks Nintendo will counteract the PSP by dropping the price of the DS on or around the PSP's launch day? It would certainly win a few converts to the DS side from the people who are currently on the fence about which portable to buy.

What do you guys think? Do you see something like this happening? I personally think that Nintendo would be foolish NOT to do this. It would be an absolutely brilliant strategy and a major blow to Sony.

A DS price drop after three months at retail would be perceived as major failure, not brilliant strategy. Also, the GameCube's price drop wasn't exactly a major blow to the PlayStation 2.

-- Z.

[Kejoriv]

No, I dont think so. The DS just has to put out a few games between now and the PSP launch to stay successful. Maybe they might include a free game with the system. I could see that happening.

[NintendoMan]

No, I dont think so. The DS just has to put out a few games between now and the PSP launch to stay successful. Maybe they might include a free game with the system. I could see that happening.
Exactly. No way of a price drop.

[DaBargainHunta]

A DS price drop after three months at retail would be perceived as major failure, not brilliant strategy.
Not if Nintendo makes it clear that it's dropping the price to compete with the PSP. If it's done on PSP launch day, everyone will get the hint.


Also, the GameCube's price drop wasn't exactly a major blow to the PlayStation 2.
Apples and oranges there, my friend. When the GC price drop happened, PS2 already had a huge installed userbase and Sony fans from the previous generation who were going to get a PS2 at some point no matter what.

[Habeeb Hamusta]

No... Took almost 2 years to drop GBA SP price.

DS will do fine as long as Nintendo manages to squeeze out a few of the bigger games out between Now and March. Plus 150 isn't a bad price at all.

Well the GBA SP didn't have any competition. I don't think the DS will drop in price but i'm not sure. I sure hope it does.

[ddockery]

At most there might be a bundle w/ Mario or something to that affect, but even that would surprise me so early in the game.

[EricRyan34]

You guys just say no because you favor Nintendo over Sony. I love Nintendo too, but I am going to speak the truth about these things. I agree that there will probably be a price drop around PSP launch. Have you saw the graphics that the PSP can produce? It is going to be a big seller. Yeah the GameBoy Advance didnt drop for 2 years, but they had absolutly NO competition.

[kevincure]

It's called the Chivas Regal Effect - when you drop the price, demand *also* drops as people believe that the good is worth less than it once was. Any business school will tell you that the timing of price drops/increases is critical (and the way you frame them also matters - i.e., you don't add a 5% surcharge for buying plane tickets over the phone, but instead quietly raise all prices 5% and give a 5% discount to people who buy over the net).

As Zach said, a price drop this close to launch is a sign that a) Nintendo didn't know what they were thinking when they set the 150 price originally and/or b) Nintendo is exhausting the number of consumers who'll pay 150, whereas Sony has millions ready to drop two c-notes on the PSP. Either way, a loss for Nintendo.

[kevincure]

Oh, lest I forget one of the most important "framing effects": Inflation bias. If consumers expect a price to drop in the near future, they won't buy because they're waiting for the price to drop. If Nintendo drops the price that close to launch, consumers will believe that the price will drop again relatively soon - therefore, sales may drop because of the price cut even if there's no Chivas Regal.

[postulio]

no way in hell will there be a price drop for the DS 3 months after its release.


if you speculate there will be, you know nothing of the gaming industry or business in general.


the system is already HALF PRICE of the psp

those people that decided to go wait for psp launch day to get the psp will not suddenly decide that they will get a ds instead.

150 is not a lot. given the graphics and features, it can even be considered cheap. these arent so much handhelds anymore, they are full blown systems on their own.

factor in game prices, DS with mario will run 194 (including tax in nyc)
where as the psp should be somehwere near 360. shit thats how much i paid for the ps2.

the price tag is not the choke point for DS sales, its games. being half price than the competition is alread

oh and NO SYSTEM HAS EVER DROPPED IN PRICE 3 months after release. crap i think even the ngay took 6 months. and it didnt sell at all.

[GobopopRevisited]

the system is already HALF PRICE of the psp

Actually, its probably looking at a $185.00 price point. Sony priced the Japanese release about a month ago, and it translated in to about 185 USD.

That doesn't actually mean it will sell That Low, or even that high, they may end up round up to 199 (as they know Americans love there PlayStation) or even release it at 149 (to better compete with the DS). Even though I highly doubt it will drop that low, I have no reason to doubt it being pushed at about an even 200. Sony is already said to be losing money on its "$185.00" price in Japan.

[DaBargainHunta]

It's called the Chivas Regal Effect - when you drop the price, demand *also* drops as people believe that the good is worth less than it once was. Any business school will tell you that the timing of price drops/increases is critical (and the way you frame them also matters - i.e., you don't add a 5% surcharge for buying plane tickets over the phone, but instead quietly raise all prices 5% and give a 5% discount to people who buy over the net).

As Zach said, a price drop this close to launch is a sign that a) Nintendo didn't know what they were thinking when they set the 150 price originally and/or b) Nintendo is exhausting the number of consumers who'll pay 150, whereas Sony has millions ready to drop two c-notes on the PSP. Either way, a loss for Nintendo.

Oh, lest I forget one of the most important "framing effects": Inflation bias. If consumers expect a price to drop in the near future, they won't buy because they're waiting for the price to drop. If Nintendo drops the price that close to launch, consumers will believe that the price will drop again relatively soon - therefore, sales may drop because of the price cut even if there's no Chivas Regal.
Pretty fascinating stuff. Thanks for taking the time to explain this and go into detail.


no way in hell will there be a price drop for the DS 3 months after its release. if you speculate there will be, you know nothing of the gaming industry or business in general.
:roll:


the system is already HALF PRICE of the psp
Unless Sony drastically raises the PSP's price from what it is in Japan, no it's not.


those people that decided to go wait for psp launch day to get the psp will not suddenly decide that they will get a ds instead.
Obviously not, but what about people who aren't sure which one to get and are waiting for both systems to come out first so that they can compare and contrast them? That's the potential audience I mentioned in my original post. I never said anything about the Sony diehards, because that goes without saying.


150 is not a lot. given the graphics and features, it can even be considered cheap. these arent so much handhelds anymore, they are full blown systems on their own.
True, but if the PSP looks more stylish (and it DOES look more stylish, and yes, people DO care about that), has better graphics (which it does), and is only slightly more expensive, people might flock to that. The original PSX became a big hit over the N64 in part because of its "cool" factor. PSP has the same thing going for it. The thing just LOOKS sweet.


oh and NO SYSTEM HAS EVER DROPPED IN PRICE 3 months after release. crap i think even the ngay took 6 months. and it didnt sell at all.
If I remember correctly, some stores had a holiday discount for N-Gage right off the bat. I'm pretty sure Gamestop at least did. Of course, N-Gage was a complete failure, so that doesn't really prove anything, but I just thought I'd point that out since you brought up price drops. :)

[zmweasel]

Apples and oranges there, my friend. When the GC price drop happened, PS2 already had a huge installed userbase and Sony fans from the previous generation who were going to get a PS2 at some point no matter what.

I mention the GC price drop because, if the DS's price was slashed as the PSP launched, it would be perceived as a desperate response to Sony, just like the GC drop.

-- Z.

[DaBargainHunta]

I mention the GC price drop because, if the DS was slashed when the PSP launched, it would be perceived as a desperate act, just like the GC drop.

-- Z.
Was the GC price drop really perceived as a desperate act though? I don't remember the price dropping too quickly.

My numbers may be off, but the first drop was from 200 to 150, correct? That happened a year after the console came out, I believe. That's when I jumped in and got one.

I don't recall when it dropped to 99, but I believe another year went by between the 150 and 99 drops. Anyone have exact dates?

[zmweasel]

Was the GC price drop really perceived as a desperate act though? I don't remember the price dropping too quickly.

My numbers may be off, but the first drop was from 200 to 150, correct? That happened a year after the console came out, I believe. That's when I jumped in and got one.

I don't recall when it dropped to 99, but I believe another year went by between the 150 and 99 drops. Anyone have exact dates?

The GC dropped from $199 to $149 in May 2002, six months after launch. This was a shocker, and a clear indicator the GC was struggling. This was the drop to which I was referring.

The GC dropped from $149 to $99 in September 2003.

-- Z.

[goatdan]

I agree that the price won't drop, but my reasoning comes from the fact that the PSP is ready to debut in Japan, and if Nintendo wanted to undercut their price by a lot, they would have started it much lower. They definitely won't cut the DS price point by December 12th, and I doubt they would again by the US launch. Remember - the war is worldwide now, and it would look bad to drastically reduce the price in the US if they don't do it everywhere.

I definitely could see the inclusion of Mario 64 or something with the system by the US PSP release date though. And I expect Nintendo will pull out a few killer apps that day too, as is the norm for competition nowadays.

[ddockery]

You guys just say no because you favor Nintendo over Sony.

Wrong. maybe some do, but I sure as hell don't. I don't think there will be a drop becaus it wouldn't make sense. I really doubt the DS will be struggling by any means, and it doesn't look like Nintendo sees the PSP as much of a threat so far... 6 months from now that could change though. The PSP won't fail by any means, but I really wonder what % of the portable market it can muster.

[orangemage]

yeah i don't see a drop this early most likely nintendo will just drop a pokemon bomb on them LOL

[pixelsnpolygons]

I find it laughable that people have shot down the likelihood of Nintendo dropping the price of the DS three months after launch - given Nintendo's recent business strategies, I wouldn't be surprised - however, I actually don't think they will. I don't think they will, but anything will surprise me - which is why I say, some of you should probably acknowledge that this system, this situation and this Nintendo is completely different to anything else you can offer up "in gaming history". Nintendo isn't even the same Nintendo that they were when they released the Game Boy Advance SP - things have changed. I'd also like to point out that Nintendo dropped the price of the Nintendo 64 by $100 only three months after launch (in Australia) because Sony dropped the PlayStation to the Nintendo 64's launch point. Yes, that is Australia, not America - but it is an example that proves anything is possible.

I think Nintendo will probably just include Super Mario 64 DS as a pack-in, or possibly not do anything and wait until the word of mouth comes back from the first PSP users. Nintendo is cocky and arrogant and could be betting on Sony's lackluster quality control to sour public perception of the system - not that the hype won't still swallow any negativity, but as I said, Nintendo exists in a bubble and possibly isn't even aware of the PSP. I love Nintendo - I'm hyping they get a little more aggressive - I think it is too early to tell what the next three months will have in store though - but not much will surprise me.

[zmweasel]

I think Nintendo will probably just include Super Mario 64 DS as a pack-in, or possibly not do anything and wait until the word of mouth comes back from the first PSP users. Nintendo is cocky and arrogant and could be betting on Sony's lackluster quality control to sour public perception of the system - not that the hype won't still swallow any negativity, but as I said, Nintendo exists in a bubble and possibly isn't even aware of the PSP. I love Nintendo - I'm hyping they get a little more aggressive - I think it is too early to tell what the next three months will have in store though - but not much will surprise me.

Nintendo is not only aware of the PSP, but hastily released the DS *because* of the PSP. Nintendo might be cocky, but it isn't stupid.

-- Z.

[Ed Oscuro]

It's rather early to say the horse is dead when it hasn't even run the race yet, isn't it? (Sorry for an awful cliche.) If the DS fails to perform as Nintendo is hoping for...and it doesn't look set to do that...Nintendo has a number of options, and a price drop is only one of them.

[udisi]

Not that I have any hard evidence just some words from people i know in the industry. Rumor here is that Nintendo will drop the price of the DS to $85 on PSP launch day. No idea where they got it from, but i was gonna wait on buying one anyway since most of the games i wanted got pushed back.

[postulio]

Not that I have any hard evidence just some words from people i know in the industry. Rumor here is that Nintendo will drop the price of the DS to $85 on PSP launch day. No idea where they got it from, but i was gonna wait on buying one anyway since most of the games i wanted got pushed back.


that is such a load of crap, i dont know why you would even post it here. how the hell are they gonna sell something that cost so much more to produce at the same price as the GBA SP{? (after a 2 year price cut)

[slip81]

I don't see the DS dropping price for at least another year. Everyone is right, dropping after 3 moths will give the wrong impression, and I think they would loose even more because people will think "well they dropped the price so soon, maybe they'll drop it again in another 3 months, I think I'll wait."

Now if Sony was smart they'll try and make the PSP as close to the DS price as possible. By doing that they will get the fence sitters thinking "Hmmm, now they are both the same price, so my decision will be based on which system offers me more." and of course the answer at this point is the PSP. It plays games, movies, music and has Wi-Fi.

Most importantly though as with any system it's the games that sell it, not the price or features. So if Nintendo comes out with half a dozen killer games around the PSP launch they'll be fine. If the PSP launch games are better than the DS games, PSP will pull ahead.

I can't say I think Sony will beat Nintendo in the handheld market; but then again who thought Sony would beat out Nintendo 9 years ago?

[postulio]

"Hmmm, now they are both the same price, so my decision will be based on which system offers me more." and of course the answer at this point is the PSP. It plays games, movies, music and has Wi-Fi.



DS plays games and has WiFi, as for movies i think everyone pretty much established that its a worthless endevour, why spend 15 bucks on a mini blue dvd when you already have the movie at home? and the damn thing is too big to matter as a music player. especially if youll have to spend another 100 bucks on a decend memory card for the music

[slip81]

"Hmmm, now they are both the same price, so my decision will be based on which system offers me more." and of course the answer at this point is the PSP. It plays games, movies, music and has Wi-Fi.

DS plays games and has WiFi, as for movies i think everyone pretty much established that its a worthless endevour, why spend 15 bucks on a mini blue dvd when you already have the movie at home? and the damn thing is too big to matter as a music player. especially if youll have to spend another 100 bucks on a decend memory card for the music

I know DS has wi-Fi, but as of right now there is no online network, so it's kind of useless except to play with people in the same room. If the PSP has an online network form the start it could give it an edge over the DS.

As far as movies an music go, sure a lot of people on the boards here may think it's useless, but average casual gamer Joe may like the idea of having a multi faceted handheld system, or maybe someone who travels a lot and doesn't want to tote around an MP3 player, portable DVD player and game system.

[squirrelnut]

As far as movies an music go, sure a lot of people on the boards here may think it's useless, but average casual gamer Joe may like the idea of having a multi faceted handheld system, or maybe someone who travels a lot and doesn't want to tote around an MP3 player, portable DVD player and game system.

Yeah it sucks carring my laptop around so much. Seriously thats all the PSP is going to be. A palm pilot with a mini dvd drive. I mean yeah buy a cheap laptop for like 400 bucks put every single emulator and rom you can find in it. A dvd drive and slap a sticker on it and call it the PSP.

But yeah I will end up buying a PSP eventually anyways and a DS. So don't bother flammin me fanboys

[CAR25]

It's called the Chivas Regal Effect - when you drop the price, demand *also* drops as people believe that the good is worth less than it once was. Any business school will tell you that the timing of price drops/increases is critical (and the way you frame them also matters - i.e., you don't add a 5% surcharge for buying plane tickets over the phone, but instead quietly raise all prices 5% and give a 5% discount to people who buy over the net).

As Zach said, a price drop this close to launch is a sign that a) Nintendo didn't know what they were thinking when they set the 150 price originally and/or b) Nintendo is exhausting the number of consumers who'll pay 150, whereas Sony has millions ready to drop two c-notes on the PSP. Either way, a loss for Nintendo.


Ummm... when the GBA had a price drop... this was on factor that made me want to buy it... same goes for everything else.

I don't think a price drop would be a bad thing, IMO I would not pay $150 for a portable like the DS... but the PSP I understand.

[CAR25]

"Hmmm, now they are both the same price, so my decision will be based on which system offers me more." and of course the answer at this point is the PSP. It plays games, movies, music and has Wi-Fi.



DS plays games and has WiFi, as for movies i think everyone pretty much established that its a worthless endevour, why spend 15 bucks on a mini blue dvd when you already have the movie at home? and the damn thing is too big to matter as a music player. especially if youll have to spend another 100 bucks on a decend memory card for the music

Well... the features in the PSP is a lot more than what the DS offers... I won't mind being able to play MP3s and Video from a memory disk... ALOT better than "picho chat" or whatever it's called... it looks like what kids would find "usefull" when at school or something. LOL

So what's so bad about such features when the DS gives none of them... even though it's only ~$30 less ? What an impractical statment.

[zmweasel]

I don't think a price drop would be a bad thing, IMO I would not pay $150 for a portable like the DS... but the PSP I understand.

A price drop after three months would be a very bad thing. It would piss off the early adopters. It would indicate that Nintendo can't sell the DS at $150. It would cause Nintendo to lose (more) money on DS hardware. It would draw comparisons to the GameCube's rapid price drop, and Nintendo does NOT want anyone comparing the DS to the GameCube.

A DS price drop at the time of the PSP's launch will absolutely not happen. So confident am I in my opinion that I'll back it up with my $100 Challenge. (It used to be my $1000 Challenge, but that scared too many potential bettors away.) I'll bet anyone here $100 that the DS's MSRP will remain the same when the PSP launches in North America. PM me if you're interested and we'll work out the details (contract, escrow, et cetera).

-- Z.

[zmweasel]

NOTE: This is strictly speculation on my part - I haven't even heard a rumor indicating anything like this.

Am I the only one who thinks Nintendo will counteract the PSP by dropping the price of the DS on or around the PSP's launch day? It would certainly win a few converts to the DS side from the people who are currently on the fence about which portable to buy.

What do you guys think? Do you see something like this happening? I personally think that Nintendo would be foolish NOT to do this. It would be an absolutely brilliant strategy and a major blow to Sony.

I'm draggin' this thread out of Limbo to point out that Nintendo did not, in fact, drop the price of the DS last week.

-- Z.

[tholly]

i dont think we will see one until nintendo starts to loose money due to high psp sales....if this does happen

[vincewy]

Also keep in mind that they just released DS in Europe, in UK they broke the launch record as most sold in 2 days, if Sony pushes PSP launch in Europe back after summer (for Nintendo the longer the delay the better), they'll just flood the markets while they're still hot cakes.

Needless to say, Nintendo shouldn't rest on the laurels, they need to get games out fast, I want to see some competition.

[Querjek]

Walmart rolled it back from 149.96 to 149.87.

[Bluteg]

Walmart rolled it back from 149.96 to 149.87.

I think I'd rather spend 9 more cents NOT to shop at Wal-Mart.

[lendelin]

The thought of a price drop BEFORE the PSP-launch was ridiculous. You don't do something drastic like this in anticipation of a lost race, you wait some time how the race looks after acouple of months. Price drops are as a rule a reactive measure to prevent anticipated losses in marketshares, and you can only calculate them after the competitor is on the market.

A premature price drop would have been non-sense becasue it would have been an unnecessary financial loss; unnecessary becasue a lower price wouldn't have been effective to get more systems out w/o the competitors clearly higher price. If the PSP does well, and N is afraid of a 50/50 marketshare after two months of the PSP launch, THEN we'll see the first price drop of the DS.

[Jasoco]

You sure are Mr. Bumpy tonight, Mr. Weasel. ;)

[NintendoMan]

Walmart rolled it back from 149.96 to 149.87.

I think I'd rather spend 9 more cents NOT to shop at Wal-Mart.

Yep, Exactly!!!!

[Nature Boy]

I would've been one of those who originally thought that yes, DS prices might've dropped, but after reading through the responses it becomes pretty obvious that it's a bad move so soon after it's release.

Continuing the conversation though: if the PSP came out 9 months after the DS, would there have been a potential price drop? Or some other time period? Does anybody think Nintendo is going to wait 2 years, like they did with the aforementioned GBA SP, or will we see something next year? By Xmas? By either company?

(And what if it were the PSP beating DS to market?)

Thoughts?

Nintendo didn't have any competition prior to this, so price drops could be done at a time most advantageous to them. But doesn't Sony and Nintendo look at each other and try to anticipate the other's moves? Won't they therefore blink sooner if you will?