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Brendan
18 Sep, 2006

PALGN Roundtable: Nintendo Wii launch

PALGN Feature | The PAL Wii launch details analysed from (almost) every possible angle.
It's been a big few days for Nintendo, with the company revealing the price and launch dates for most of the world's major territories. After countless months of speculation, Australians will be able to pick up their consoles, packed with Wii Sports, on December 7th for $399.95. Europe will have to wait a day (plus the time difference, of course) for their December 8th launch, where the bundle will cost £179/€249.

This is in comparison to the Japanese release, on December 2nd, for ¥25,000, and the US release on November 17th for US$250. This makes it the first time that PAL territories have ever gotten a Nintendo console in the same year as Japan and the US.

Our forums have been ablaze with people both applauding and voicing their disapproval of Nintendo's PAL launch plans. So, we decided to put the question to our staff: What do you think of the Nintendo Wii release date and launch price? Was it in line with your expectations? Is it a bargain? Or has Nintendo shot itself in the foot? And, most importantly, will you be getting one on launch day?

Chris, Contributor:

Well first of all, it’s not quite as cheap as I'd expected. £150 was what I had estimated, but with the inclusion of Wii Sports and hopefully a 360 style component/composite cable, it’s good value. Of course, when you consider that the Xbox 360 Core pack is now available at £200 (just £20 more) it suddenly doesn’t seem that cheap, but if you look at the plain facts, it's a different story. For £180 you've got a machine, a controller, broadband connectivity, a game and some way to actually save your game. Once you’ve bought a game and a memory card for the core Xbox 360 you're now looking closer to £300, especially if there's a component cable with the Wii.

As for the date, the 3 week wait from the US launch is a little disappointing. Having it within seven days would have been nice, but ultimately, as long as it was out a few weeks before Christmas, it doesn’t really matter given Sony’s PS3 delay. The inclusion of Wii Sports at the expense of a higher launch price is a good decision also in my opinion. By having it with every machine there is a game everyone has that anyone of all ages can play and enjoy. Zelda: Twilight Princess is all well and good, but it’s not the sort of thing that’ll get your family and friends around the TV on Boxing Day.


Everybody - EVERYBODY - wants this game.

Everybody - EVERYBODY - wants this game.
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Matt, Deputy Editor

I'm sticking to the import path with Nintendo home consoles once again for a number of reasons - namely price and timeliness. That doesn't mean that I don't think the PAL branches of Nintendo haven't improved - three weeks is one hell of a lot sooner than the seven months non-importing Australians had to wait for the GameCube, or the five months they had to wait for the 360 and will have to wait for the PlayStation 3. I do believe Nintendo's pricing strategies are a result of what Microsoft has done in recent times - basically they greased us up and got us to accept ridiculous prices for games and hardware, and Nintendo are following suit, but staying behind far enough so as to say, "Hey look - we're cheaper," which is a real bummer for lazy consumers. In summary, I guess you can say the pricing of Wii hardware and software is good, but not great.

There doesn't seem to be any shortage of software at the launch - I can see about five titles I'm interested in off the bat; I just hope they can keep up the flow of quality titles after the launch, and avoid the same mistakes they made with the GameCube. Then you take into consideration the fact that it's launching with 60 Virtual Console games and full backwards-compatibility with GameCube, and you start to realise that the machine has a whole lot of actual gaming to offer. I think Nintendo's method of planning to release ten titles per month for Virtual Console rather than just throwing everything up there at launch is a wise move - it should theoretically encourage people to spend more time with the games they've paid for, rather than just getting a whole bunch and skimming over them. It's also superior to the Xbox Live Arcade model, where we see scant few games released (where's Lumines Live?). I'm very happy with the pricing model for these titles, and really do hope that Nintendo sticks to its plan to allow gamers from PAL regions to sample some of the bigger titles from the US and Japan that they missed out on.

What I cannot believe is some of the reactions that are coming out of the woodwork, particularly from some American outlets and fans. Some people just have absolutely no idea about how to run a business, nor do they have any sort of formal education in business, and should therefore just learn to shut their damn mouths. Stick to playing games.


Luke, PR Director

I'm not entirely convinced $399.95 is a casual gaming pricepoint. The audience that Nintendo is going for are casual gamers who love having fun with their games. The DS appeals to these kind of people, with the 'Touch Generation!' titles, but with the Wii now double the price, you've got to wonder if it will be as successful. For a significant amount less you're able to pick up a PlayStation 2 and Singstar - we've got to ask whether they've set the price just a little bit too high.

However, despite the price point, I'm ecstatic that we're getting the Wii this year and that we don't miss out on getting a new console for Christmas. The fact that there's only around three weeks difference between the American launch and the European launch is something that Nintendo should be commended on. The Virtual Console is pretty exciting as well and, as Matt said, I think the pricing is very reasonable. With only one new console out this Christmas, Nintendo has a great head-start over Sony.


Phil, Contributor

Console launches have never interested me. This may be in part to never being able to afford any at launch, or perhaps the lack of quality titles. Maybe both. The Wii is different somehow – the actual gameplay I will experience from this new console is going to be completely unknown until I waddle down to the store and pick it up. I knew what I was getting when I bought my PS2, and I know what I will be getting with my 360. The Wii is like a journey into the unknown.

Yes, the price could stand to be a little lower for some, but it really was exactly as I expected, and I always thought we would see it before Christmas. Perhaps my correct answers were just guesses, but it doesn’t matter now. Put it this way – I paid a little under $600 for my PS2, with Metal Gear Solid 2 and a memory card. This was also a while after launch – I forget the exact time frame. So, the Wii packaged with Wii Sports (which seems to be a quality introductory game to help players familiarise themselves with the new control system) really does seem like a reasonable price for launch. Well, at least I can afford it - but maybe that’s because I do some pimping on the side. Wiicognise, trick!

Like it or lump it, Wii will be invading our homes come December, and at a price cheap enough for many; the PSP sold well-ish at launch for the same price, and the Wii is a console, so better value there. As I write this I have only just come back from my pre-ordering expedition, picking up one of those suspiciously good Toys 'R Us offers (“Free Game”? - don’t even think about telling me it’s Wii Sports when I rock up at opening time). Shop around and you should be able to score back money you lost on the inflated price.


Not out 'til next year, but still in our hearts.

Not out 'til next year, but still in our hearts.
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Jeremy, Contributor:

It's excellent that we're getting the console this year. I think we all should at least be grateful that we don't have to wait a stupid amount of time for it to arrive. There's a pack-in game and, while I don't really care about it, it's good that it's in there. Then of course you have a great launch line-up. OK, so Metroid got pushed back, but we're getting a Zelda game at a launch. On top of that, you've a large amount of titles that in the least, have the potential to keep us going for a while.

However, the bad bits are very disappointing. For a console that was being touted as SO MUCH MORE affordable than the competitors, the pricing structures are a let down - for ALL regions. Every region will probably be paying more than they should or more than they believed they would be. Basically, Nintendo can no longer tout the system as one for everybody. I mean, if you want to utilise Wii Sports, you have to go and plonk out a rather large amount for an extra controller. Conceptually, Wii Sports is great and Nintendo has consistently been pushing an "everyone can play" approach. But to do that, you need to fill Nintendo's coffers first. Then there's the retro controller and VC games... A DS is affordable because you DON'T need to buy anything other than games for it. There simply isn't as big a gap between prices as Nintendo were leading us to believe.

Pretty much, the pull is that it's an "innovation system" rather than an "affordable" system (as David has mentioned in the forums). The question is: is innovation enough to encourage people to purchase the unit? Innovative AND affordable would have been much better. It would have been nice to see a more dynamic pricing strategy for games, especially when the Nintendo President himself was saying how they wanted to find a balance between lower production cost gaming (Wii Sports) and higher production cost gaming (Zelda). Originally, I was glad that there was region-free support, but the fact that no one in Nintendo has an idea what's REALLY going on is quite worrisome.

This is slightly problematic for the future of Nintendo outside of Japan. I think that it is obvious by now that Nintendo is likening its approach of Wii to that of the DS. That is, making sure that the console owns all in Japan. This is good, especially when we see how many of the bigger publishers have jumped back on board the DS. If this can be mirrored with Wii, gaming will be better for it. However, the downside with the Japanese focus is that Ninty doesn't really care about what happens in the rest of the world, and we get the leftovers. The whole approach to this launch has lacked any sort of aggression. With PS3 very likely to suffer huge supply issues like the Xbox 360 did, this was Nintendo's chance to really get in and push home a great advantage. Instead, it seems that it's left it up to chance and hope for success, rather than going out and getting it. The reason that Microsoft found success with the Xbox was aggressive marketing. I'm worried that unless Wii really takes off this next year, we'll be in for another tanked system. Unfortunately, I don't think we can count on the suits in Kyoto to do anything about that...

The disappointment on pricing is most likely based on the hype generated by Nintendo, in terms of being much cheaper and much more affordable. It would have been more comforting to see Nintendo take a more aggressive stance in light of Sony's failures and Microsoft's imminent aggression. If anything, we're all in the same boat so we might as well get comfy. Will I be buying one at launch? Well, I will but only after a great deal of shopping around. I jumped the gun with the Xbox 360 and I'm not making the same mistake here. But the bad is not bad enough to completely derail the good and, come Christmas, good times can be foreseen. Even though we'll be paying more for it than we were originally led to believe.


David, Contributor:

It's simply incredible that Australia and Europe will be getting this console at about the same time as the rest of the world. Microsoft promised a worldwide launch but skipped Australia and vastly under supplied Europe (while thousand of consoles gathered dust in Japan). Sony promised the world but have failed to deliver (literally). Nintendo didn't promise anything, and yet - assuming all goes to plan - will deliver more then the others even promised. For the first time ever, European, Australian, Japanese and American gamers will be enjoying launch games together.

And what a launch it will be. The controller is so different that almost any game will likely be immediately entertaining, but the launch line-up is as strong as any I can remember. Red Steel probably won't be remembered as an all time classic, but I still think it will be 'the' multiplayer launch hit. Excite Truck may be the first racing game I've bought since Burnout 3. And while some of us are sick of hearing about Twilight Princess (it has been a long time coming), once we have it in our homes I'm sure we'll all be sick of hearing the phrase 'game of the year' too.

I was initially annoyed at the Australian and European launch prices, and I still am from a personal point of view - hey, why should we pay 20% more then American gamers? It's still a lower mark-up then either Sony or Microsoft's were/will be over their respective US prices - it seems we've been spoilt recently by the exceptionally priced DS. Though it does make some sense - for its entire lifespan, the general population mistakenly assumed the GameCube was inferior to its competitors simply because it was cheaper - what would these people think of a system that was a fraction the price of the others? Nintendo are smart to position Wii as the 'new, fresh technology' console rather then the 'budget and gimmick' console - in much the same way they have successfully managed to re-position the mega-hit DS. By packing in a game that could easily have sold for $70 (hey - people lapped up Table Tennis), Nintendo gets an advertisement for one of the the system's strengths into every owner's home, some price drop head room, and a few extra bucks in its bank account. Bad for us and good for them right now, but perhaps good for everyone long term?

Did I mention we're getting it this year?


Multi-disc slot loading drive. Crazy.

Multi-disc slot loading drive. Crazy.
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Joseph, Contributor:

The price for the launch in Europe and Australia seems a little steep when compared to the launch in America and, at most, I expected it to be AU$350. But looking at GameCube's price point back in 2002, it really is of good value considering it includes a copy of Wii Sports. While many people are saying they weren't initally going to buy Wii Sports anyway, they're forgetting who Nintendo is aiming the Wii at. Not only is the company aiming it towards gamers, but it's also trying to open up the market towards people who don't usually play video games. By bundling Wii Sports with the Wii, and giving people a chance to play it in stores across the globe, I feel Nintendo is on to an excellent marketing strategy. Does this account for the higher price point? No, it dosen't. But really, is an extra $70 going to hurt you that much in the long run? I highly doubt it.

Concerning the launch line-up, I'm very pleased with the variety that will be avaliable. We have the likes of Zelda, Rayman: Raving Rabbids and Red Steel to look forward to, among others. Sure Metroid won't be there, but do we really need it? A thing I noticed with Metroid Prime 2 when it was first released was that its sales dropped off, due to the likes of Pikmin 2 and Paper Mario stealing the spotlight. Now it's been delayed until 2007, it will most likely get the full recognition it deserves from the public. On the bright side, this also means that the game will not be rushed and will have a lot more elements implemented to it... Hopefully. It would even be interesting to see how it fares against Halo 3 if released alongside it.

Will I be getting a Wii at launch? Yes, I will. I am looking forward to the first time I load the disc into its shiny disc drive and turn the power button on. That one moment in time when myself, and many others, enter a new era in Nintendo gaming. And with blinds and windows wide open, I'll be waiting for someone to look inside and see an odd man swinging his arms around like some insane person.


Brendan, Editor:

Nintendo has got a lot right with this launch. The PAL release date is marvellous, coming only 5/6 days behind the Japanese launch - brilliant! Contrary to the opinions of some of my colleagues, I think the bundling of Wii Sports was a good move. Even if the game turns out to be a fancy tech-demo, it will still give everyone a good idea of what the Wii is about and how to use the controller. The launch line-up also seems strong, but whether this turns out to be correct once we get to play it is another matter.

But they've also done a few things wrong. I think the biggest oversight is the lack of the classic controller in the standard package. I can understand Nintendo wanting to encourage developers to make use of the shiny new magic wand, but if developers who want to make a game using traditional controls (like it or not, not everything is going to be suited to the Wii-mote) are faced with the possibility of making a game which only 1/3 (or however many people buy the classic controller) of Wii owners can actually play, why bother? Some Virtual Console games won't be terribly great on the classic controller either, but eh.

Price is also a concern. Everything we heard from Nintendo suggested that this console would be bargain basement. It's not. If it came with an additional nunchuk, remote and classic controller, I'd be happy with it. As it is, I fear Nintendo may be asking just a bit too much for the average punter to be interested. Still, it's the same price as a PSP, so it's not too bad.

A bit of a mixed bag, then, with the good and bad cancelling each other out in my view. Personally, I'll be sitting on the fence for a while before purchasing one (PAL GameCube Twilight Princess release pending).


Tristan, Contributor:

Finally, a console launch that doesn't leave us behind by half a year and playing catch-up with the rest of the globe. Domo Arigato Nintendo, for thinking of us once again. It's good to hear that we are not considered the ugly stepchild of the world by every console developer.

The price announced for Wii was a little higher than I first expected, and at over $100 more expensive than the Japanese price, I might, for the first time, even consider importing mine. I had expected a $350 price point here in Australia, which to me feels more reasonable. $399 does however, make a little sense when you think about it from a marketing perspective. When compared to the Xbox 360's current price, anything lower may make your average consumer jump to the conclusion that the cheapness of the Wii comes with a sacrifice in quality. I do worry a little that $399 is a little high to attract the new market that Nintendo is aiming for, especially when you factor in buying a second Wii-mote. As Nintendo is marketing the Wii as a system that is also for more social gaming, a second controller seems a neccessity.

I think the most groundbreaking news is the quality launch lineup. Well to be fully frank, it's having Zelda as a launch title. Not to say that there aren't other great launch titles - there are definitely those - but nothing brings the Nintendo fanboys/girls out of the woodwork these days like a Zelda launch. Coupled with some excellent casual games, it seems likely that the Wii will make a big splash (excuse the unintentional pun). Having Wii Sports bundled with the console is a great move and, tech-demo or otherwise, to me it looks like it could be great fun. Virtual Console still seems slightly gimmicky. There are only a couple of titles that I am interested in playing, and that will only be out of curiosity. I assume interest in them will wane after a short time, as tends to happen with retro compilations. However, it's good to see that Nintendo's blatant rip-off of Microsoft's system of paying for things online correlates more sensibly to real world dollars. Wii channels look like a great addition to the online functionality of the console, and it will be interesting to see where this gets taken (very interesting for a company that, for the last generation, decided to focus on games, and only games).

Overall I'm relatively optimistic about what we have in store for us on December 7th. I think that, like the DS, it may take a while for the Wii to fully take flight, but after a while, and after developers fully understand its potential, people will start picking up on what makes this console so interesting. Minus a few disappointments, I am still looking forward to the coming of the Wii.


Some are happy with Wii Sports... Some aren't.

Some are happy with Wii Sports... Some aren't.
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Mark, Contributor:

How can you put a price on an innovative console? The Wii is only a beefed-up GameCube, but it also has a lot of new and exciting features that can bring out the best in games, so I think it’s difficult to say that $399 is a bad price. What makes the PS3 a $1000 console? Its cutting-edge technology. I don’t see how the Wii is any different. It’s at an affordable price, and it’s an interactive console that people of all ages can enjoy. There’s no guarantee that high-end graphics will be the next-generation ‘thing’, so I think Nintendo has at least done a good job at making its console the cheapest.

Nintendo is doing an excellent job with the launch line-up. There’s a great deal of variety of Wii software within the first couple of months of its release: key Nintendo franchises, strong third-party support and several titles that show off some of the key features of the console. I think it’s equally important that it allows gamers to check out the Virtual Console games too, offering even more appeal at launch, and at a decent price. The release date is another great incentive, meaning that we’ll surely see some great pre-Christmas deals for the console too.

I think it’s great we’re getting a packed-in game. Not since the Sega Master System have I actually looked forward to buying a system, because I’m getting a free game to boot. The only real disappointment I have with the launch is that we’re only receiving one Wii controller and one nunchuk controller, meaning that those of who want to enjoy some of the games will have to buy further items – that probably won’t be cheap either. And I think Nintendo has done an absolutely shocking job on showing it wants to actually push itself into the online market. There's been very little talk about the system’s online components, and none of the launch titles will be supporting online features. Even when the console is actually launched, it seems Nintendo still wants to keep a few secrets from us. Seems a little stupid, in my opinion.

I’m certainly going to be buying one on December 7th, and I honestly can’t wait to check out some of the exciting Virtual Console games that’ll be available at launch.


James, Manager:

For me, the most disappointing aspect of the Australian launch is the way that it was announced. Japan, America and Europe were all treated to press conferences and hands-on opportunities. Australia had no such event; in fact we were not even told when we were going to be told. Now I can certainly forgive Nintendo for the lack of an event, since there are very few Wii consoles and even games in the country. However, only telling us that we would know “some time on Friday” and then delivering a poorly written press release at 9:10pm just isn’t on. Not only did they inconvenience many of their fans (and journalists) who were waiting all day for the announcement, but they’ve now lost all the mainstream Australian press they could have generated on Friday by releasing the information while the global hype was at its peak. Nintendo have historically been notoriously bad at PR in Australia. There were some signs of improvement in recent times, however this blunder makes it seem like the company has fallen asleep at the wheel again. Wake up Nintendo!

As for the price and date, I’m reasonably happy. A few weeks ago I was expecting a $299 launch in early November, but after the PS3 delay the higher price and later date do make a lot more sense. $399 is actually a pretty good psychological price point. With $99 (or less) GameCubes floating around store shelves, Nintendo’s main hurdle is convincing the Australian public that the Wii is a sought-after device. At $299 not only would it have seemed “cheap” it would leave no room for price drops before they were at the bargain basement price of $99 again. $399 was the launch price for the PSP, but we’re getting a whole lot more in the package for the Wii.

The only thing that I’m worried about is that we’re going to see retailers pushing the “hi-definition” Xbox 360 and PS3 over the Wii. Nintendo’s bad PR extends to its relationship with the retailers. Despite the fact that Australia has such a low pick-up rate of HD-ready TVs (and hence for most households a lot of the power of the 360 and PS3 are going to be lost), you can still bet that Harvey Norman and JB Hi-Fi are going to have their employees telling people how much less powerful the Wii is.

I’ll certainly be getting one at launch (if only for Twilight Princess), but Nintendo has an uphill battle in Australia to make sure it doesn’t stay in last place for the next generation console wars.


Our reaction to the Wii launch date.

Our reaction to the Wii launch date.
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John, Art Director:

I was refreshing my browser constantly on Friday afternoon, mainly waiting for Nintendo to get the event started (took a good 40 minutes for them to sit everybody down) and then right through the dull DS sales figures (wasn't there a conference last month dealing with those?). They sure do like to tease, but the whole thing ended with even more questions than answers. Some of the non-game stuff is very impressive - the photo viewing and editing functions could be very enticing to someone who doesn't yet own a PC.

The European date is good, although the Australians aren't going to let us forget the time they get a console before we do (it's one day, get over it). Nintendo's policy of non-disclosure may pay off for them since they've managed to do what a certain competitor hoped it could accomplish, releasing the console when you say you are going to release it.

Price was one of the key things that Nintendo has been pushing (as well as the controller) and for the most part they've kept it reasonable. Including Wii Sports was a good idea as it means everything you need to enjoy the Wii right away is packed in. I've seen a lot of negative feedback on the price as many people have now found the joys of online currency conversion. The European price is more than we paid for the GameCube, but if you all remember, Nintendo originally planned on a £149 price, but dropped it to £129. A lot of people have recommended importing the Wii but you'll be back at £179 once you've added on international shipping, customs duties and the cost of a power converter (while missing out on a warranty).

I'm taking 8th December as holiday so I can throw my arms around like a mad man all day (mostly waiting for the postal service to hurry up and deliver it).


Chris Leigh, Contributor:

As a consumer based in the UK, I'll be paying more for Nintendo's Wii console than anyone else, if you ignore the clots who pay daft money for one on eBay. How have I taken this? Well, I'll still get one at launch, and from the UK at that. But that doesn't prevent Nintendo's recent announcement that Wii would cost me the equivalent of AU$450 being a little hard to swallow. Here in the UK, our mainstream tabloid press loves to refer to the UK as "Rip-off Britain". It's a phrase that's adorned many a headline, and while it's actually quite a flawed way of looking at things on one level, it rings true in this scenario. When it comes to the price of the Wii here, there's not just a gap between ourselves and other countries - this is a full-on chasm.

There's other things that irk me, however. In an age where other manufacturers (OK, I'll say it - Microsoft) are offering consumers a greater choice in what they have and don't have, prospective Wii owners are given no choice but to buy what is essentially an upgraded tech demo with their new toy. It's a thinly-veiled marketing ploy that last appeared in about, ooh, 1989. And one controller? Surely this completely goes against the philosophy being preached by Ninty over the last twelve months? I'll still trudge out to the shops to buy mine on December 8th, if only because Nintendo remains a masterful designer of games. But I'll have a bloody big frown on my face as I do it.



So, there you have it - the Wii launch, from every angle we could think of. Be sure to keep refreshing PALGN over the coming months, as we'll be keeping you informed with all the latest on the Wii launch.

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77 Comments
5 years ago
This is one of the main reasons I spend time here on PALGN, hearing such comments from the staff in an unbiased perspective. The thing that most of the people who have voiced their own opinions concerning the launch of the Nintendo Wii need to understand that not everything can go their own way.

Almost every single video game console that has been released isn't perfect. At the moment, I look at my three current generation video game consoles and see each piece of hardware for what it was made for, what it was made to do and take advantage of the particular piece of hardware in every possible way.

Each and every video game console contains both pro and con features, and this trend will continue.
5 years ago
I agree with you James, Nintendo Australia should all be fired and PR team that actually know what they are doing should be employed. Ever since the N64, the marketing as been a joke.

But yes, a common point is, why on earth didn't they include the classic controller? I mean, they WANT people to download virutal console games and make $$$.
5 years ago
Matt, Deputy Editor wrote
I'm sticking to the import path with Nintendo home consoles once again for a number of reasons - namely price and timeliness. That doesn't mean that I don't think the PAL branches of Nintendo haven't improved - three weeks is one hell of a lot sooner than the seven months non-importing Australians had to wait for the GameCube, or the five months they had to wait for the 360 and will have to wait for the PlayStation 3. I do believe Nintendo's pricing strategies are a result of what Microsoft has done in recent times - basically they greased us up and got us to accept ridiculous prices for games and hardware, and Nintendo are following suit, but staying behind far enough so as to say, "Hey look - we're cheaper," which is a real bummer for lazy consumers. In summary, I guess you can say the pricing of Wii hardware and software is good, but not great.

There doesn't seem to be any shortage of software at the launch - I can see about five titles I'm interested in off the bat; I just hope they can keep up the flow of quality titles after the launch, and avoid the same mistakes they made with the GameCube. Then you take into consideration the fact that it's launching with 60 Virtual Console games and full backwards-compatibility with GameCube, and you start to realise that the machine has a whole lot of actual gaming to offer. I think Nintendo's method of planning to release ten titles per month for Virtual Console rather than just throwing everything up there at launch is a wise move - it should theoretically encourage people to spend more time with the games they've paid for, rather than just getting a whole bunch and skimming over them. It's also superior to the Xbox Live Arcade model, where we see scant few games released (where's Lumines Live?). I'm very happy with the pricing model for these titles, and really do hope that Nintendo sticks to its plan to allow gamers from PAL regions to sample some of the bigger titles from the US and Japan that they missed out on.

What I cannot believe is some of the reactions that are coming out of the woodwork, particularly from some American outlets and fans. Some people just have absolutely no idea about how to run a business, nor do they have any sort of formal education in business, and should therefore just learn to shut their damn mouths. Stick to playing games.
that is sooooooo QFT. its the most QFT thing i have ever QFT. especially the Bold bits.

and man icon_eek.gif icon_eek.gif icon_eek.gif i didnt relise how many people contribute to PALGN.
5 years ago
Quote
Everybody - EVERYBODY - wants this game.
Except me. icon_lol.gif

Great roundtable guys.
5 years ago
I can't believe some of the reactions that have come out of everybody about the wii launch and price.

It's one topic i pretty much stayed away from, i've my opinions on the price and whatnot, but i'm not gunna daisy chain a whole heap of economics jargon and sales figures to try and make out i'm an expert on something that i know nothing about.
5 years ago
The 20% markup is the department stores markup not Nintendo, It has nothing to do with Nintendo the fact that Australia is getting it 20% more expensive. If you want to blame someone? Blame EB, blame GamesWizars, blame Myer, blame David Jones, blame Toys R' Us and blame Harvey Norman. If a store is selling Wii for $400, blame the store, not Nintendo. Paying $100 for a game that costs $US50 has been around for as long as I can remember. Its not Nintendo's fault and the markup will be dropped after 6 months, its how they work and how they make money.

I am disapointed about having to fork out for a VC Controller and another Wiimote (at what they are priced).

I will buy a 2nd Wii-Mote but wait until it hits $50 or lower before I buy 2 more
5 years ago
renegadesx wrote
The 20% markup is the department stores markup not Nintendo, It has nothing to do with Nintendo the fact that Australia is getting it 20% more expensive. If you want to blame someone? Blame EB, blame GamesWizars, blame Myer, blame David Jones, blame Toys R' Us and blame Harvey Norman. If a store is selling Wii for $400, blame the store, not Nintendo. Paying $100 for a game that costs $US50 has been around for as long as I can remember. Its not Nintendo's fault and the markup will be dropped after 6 months, its how they work and how they make money.
Where'd you get that idea? The retail price and the amount of markup that the department stores receive is set by Nintendo. They have to approve any price drops with Nintendo.
5 years ago
Approve price drops? Isn't that tantamount to price fixing?

I thought the RRP was set by the company and if distributors wanted to sell for less they could as it was a 'recommended' retail price.
5 years ago
troublemaker wrote
Approve price drops? Isn't that tantamount to price fixing?

I thought the RRP was set by the company and if distributors wanted to sell for less they could as it was a 'recommended' retail price.
I know that retailers faced losing support if they dropped the 360 price at launch without approval from Microsoft, I suspect the same situation occurs with Nintendo. Regardless, the base price point is set by Nintendo - retailers expect to receive a certain markup. It's Nintendo who create the price difference between Australia and the US, not retailers.

::EDIT - ok scrap the part about not being able to price drop. I spoke to someone who manages a game store and he said there's no such restrictions. However, the SRP is set by Nintendo - it's still them who are responsible for the Us / Aus price difference. ::
5 years ago
James wrote
troublemaker wrote
Approve price drops? Isn't that tantamount to price fixing?

I thought the RRP was set by the company and if distributors wanted to sell for less they could as it was a 'recommended' retail price.
I know that retailers faced losing support if they dropped the 360 price at launch without approval from Microsoft, I suspect the same situation occurs with Nintendo. Regardless, the base price point is set by Nintendo - retailers expect to receive a certain markup. It's Nintendo who create the price difference between Australia and the US, not retailers.
Question.

is anything acctually proven or can be proven to why Consoles, albeit Nintendo, Sony or M$ are marked up in specific regions?

I have heard allot of crap as to why over the years but it seems nothing has been proven, maybe its both the company marking up and local taxes ect. I wonder if say there was mark up by a comapany how much that compared to other companies in the industry and even other products.

And Maaaaybe PALGN should do its first study....you would get massive coverage LOL icon_biggrin.gif
5 years ago
James wrote
::EDIT - ok scrap the part about not being able to price drop. I spoke to someone who manages a game store and he said there's no such restrictions. However, the SRP is set by Nintendo - it's still them who are responsible for the Us / Aus price difference. ::
Yes, to do so would be illegal for Microsoft/Nintendo/Sony icon_wink.gif

The way it works is the manufacturer sets the RRP to incorporate the retailer's margin into it. If the retailer wants to price drop they're more than welcome to, but it's their own margins they're cutting in to, so it's up to them to decide whether the increased sales will offset that. Price drops initiated by the manufacturer will involve a lower purchase cost to the retailer, so their margins are maintained.
5 years ago
Spanca wrote
James wrote
::EDIT - ok scrap the part about not being able to price drop. I spoke to someone who manages a game store and he said there's no such restrictions. However, the SRP is set by Nintendo - it's still them who are responsible for the Us / Aus price difference. ::
Yes, to do so would be illegal for Microsoft/Nintendo/Sony icon_wink.gif
It's also technically illegal to sell anything at a loss to gain marketshare in most countries, but that doesn't stop anyone.
5 years ago
David wrote
Spanca wrote
James wrote
::EDIT - ok scrap the part about not being able to price drop. I spoke to someone who manages a game store and he said there's no such restrictions. However, the SRP is set by Nintendo - it's still them who are responsible for the Us / Aus price difference. ::
Yes, to do so would be illegal for Microsoft/Nintendo/Sony icon_wink.gif
It's also technically illegal to sell anything at a loss to gain marketshare in most countries, but that doesn't stop anyone.
Do you know where that comes from, if it is in fact true? It would seem odd to legislate against such a thing. There are quite a few restrictions on pricing, but whether or not a product is sold below manufacturing cost does not seem to be within the realm of regulation.

James wrote
I know that retailers faced losing support if they dropped the 360 price at launch without approval from Microsoft, I suspect the same situation occurs with Nintendo.
That may be true, and if it is it's a very underhanded way of dodging the rules. They couldn't outright refuse supply based on a retailer's price, but it could seriously hamper the relationship in the channel and have repercussions in the future for that retailer. For most retailers, it's in their interests to play the game according to the manufacturer's rules, so RRPs are generally adhered to.
5 years ago
here ya go ...
Predatory Pricing:
http://www.accc.gov.au/content/index.phtml/itemId/322986/fromItemId/3669

edit: and this ...
http://en.wikipedia.org/wiki/Predatory_pricing

edit2: not sure how closely RRPs are adhered to at launch, I remember JB Hi Fi dropping the launch price of the 380 to something like $600 within the 1st week
5 years ago
Predatory pricing =/= selling below cost.

Predatory pricing would be Microsoft selling the 360 for $5 and owning the Wii and PS3 for market share until they could no longer compete. (in reality it probably wouldn't work anyway due to the perceptions of such a cheap console, and the obviously malicious strategies).

If the 360 cost $499 to make and Microsoft sold it for $498, it's not illegal, just stupid icon_razz.gif
5 years ago
Isn't the 360 sold below cost anyway? (in hope of recouping money via software etc)

In the case of the 360, it couldn't be accused of predatory pricing as there aren't any (next gen) competitors.

To me it seems the concept of predatory pricing is based purely around drastic (unsustainable) cost cutting (even to the point of making a loss) with the intention to drive out competition.
5 years ago
^ Correct on all accounts. Predatory pricing regulation is intended to stop price cutting that initiates a price war competitors are incapable of waging.
5 years ago
To the Noob that spouted the Retailer BS, what do you think they do in the
states? sell the software for Nintendo at $50US for no profit because they love
Nintendo? I mean WTF? Retail in the USA works on approx 20 to 25% profit
on software, just like australia does, your comments are the most ignorrant thing
that I am yet to hear.

and FYI as retailers we only make approx 6 to 8% profit on hardware like consoles,
You my friend need to learn one thing, the Retailers are there to make money,
not just to give you the luxury of buying games at the price that they get charged,
we dont do it becasue we love you, Id like you to remember that.



Rant Over.
5 years ago
Well written article and I agree with most it... well done PALGN guys!
5 years ago
Spanca wrote
^ Correct on all accounts. Predatory pricing regulation is intended to stop price cutting that initiates a price war competitors are incapable of waging.
What, you mean like...Sega?

I remember Sega and Atari were considering an anti-trust suit against Sony in 1995 on the basis that the electronics mega-conglomerate were 'dumping' the original playstation at below cost (which they were) to quickly drive out competitors, which they succeded at doing - by the time the N64 turned up, the Saturn and Jaguar were already effectively dead in the US (the Saturn lived on profitably for years in Japan, where the laws are tougher and it and the playstation were both sold at above cost). The lawsuit didn't happen because neither company could afford it.

Most of that Wikipedia artile sounds like Microsoft's actions with the Xbox. What other theory explains US$7 bilion down (and counting) on the project? The only way it seems they can ever make money is if they become dominant.

It's just impossible to prove dumping and predatory-pricing.
5 years ago
One thing I think Nintendo got right is releasing the Wii console in Australia before Xmas.

I really thought they would screw the Aussie Nintendo fans over.

Will disappointed gamers who were going to buy a PS3 buy a Wii? Well I think its not going to be that simple but it doesn't hurt to have it on the shelves just in case there is a huge shift in opinions. The old motto you have to be in it to win it.

Whilst I'm not getting one (can't see the need at the moment) Nintendo's biggest concern will be is "mr and mrs joe average" going to believe this is a next gen console beside a Xbox 360 (or later with PS3)? Lets face the facts they will want to compare "apples vs. apples". And its really an "apples vs. oranges" argument.

Will they be enticed by the Wii remote controller? If its too left field or they believe Sony/MS will give this too them than its going to be a liability rather than a great asset.

Will they perceive Wii as a glorified Gamecube? This is part I think that is really going to hurt if the perception gets rampart in the general press and retailers. Consumers can get a slimline PS2 for Xmas and have a huge selection of games.

Just look at the slick images for the new Spryo game very nice for an aging PS2 console.

These are in my mind rather large hurdles that need to be managed.

On the subject of price $399 doesn't make it mass market icon_sad.gif. Sony sees a huge lift in its sales when its console(s) are around the $250 mark.

Great article btw!!!!
5 years ago
Good to hear everyone's view on the launch. Most of it sounds pretty positive, which is good to hear I'm fairly happy with the launch details, I'll go with the flow and buy it on launch day. icon_smile.gif
5 years ago
Please, not another 10 page thread about the Wii!
5 years ago
Jibbs wrote
I can't believe some of the reactions that have come out of everybody about the wii launch and price.

It's one topic i pretty much stayed away from, i've my opinions on the price and whatnot, but i'm not gunna daisy chain a whole heap of economics jargon and sales figures to try and make out i'm an expert on something that i know nothing about.
Same for me as to reactions, I don't think I've even commented on my thoughts in any forum yet, only to people I know / chat.

It seems that a lot of people are bashing the price of the console based on what they wished it to be, rather than taking a look at the market, and what actually goes into making the console.

I agree with the majority of the opinions voiced in this roundtable about it being a good deal with plenty to look forward to, at launch, for every region (well major, including Australia) in the world. I also remember how Nintendo said they were going to release the console this year, and in the space of fourteen weeks for various launches, of which they've actually exceeded by providing the Wii in all regions this year in the space of three weeks. Something that is commendable, instead of the delays that we have faced with the 360 and PS3.

Having Zelda at launch is also all I really need, as I have only have a 2.5 week break before I end up back at studying (starting January 2nd or 3rd feels really bad), and I have plenty to look forward to on top of Zelda at launch including Excite Truck, Rayman and Red Steel.

Obviously though, we'll need to wait another year before we know exactly as to whether support will be like the Cube or changed in the right direction.

EvilHayama wrote
Please, not another 10 page thread about the Wii!
I think it's already begun, no matter how many times, our opinions will be echoed across these forums numerous times. icon_razz.gif
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