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.

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.