Sunday, November 8, 2009

Pricing Strategy



Nintendo has two main different strategies for their products. One for their consoles, and another one for their games. In Japan, prices usually change according to the game from 40 to 70 dollars per unit. Whereas in the U.S the pricing strategy has been based in a more stable price for the games when launched. All Nintendo consoles have always had an initial retail price of $199.99, an amount of money that is referred by Nintendo as the "affordable price," in which later on they go down in price from it according to the demand of the product. However, the Nintendo Wii had a different price when first launched, it was $249.99, because it included a game with it. And anyway the Nintendo Wii had an affordable price compared to its biggest competitors, the PS3 and the Xbox, who were respectively  charging around 600 hundred and 400 hundred dollars per unit.

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