Why Nintendo's 25,000Yen is Cheap and SCEI's 30,000Yen is Expensive

Why Nintendo's 25,000Yen is Cheap and SCEI's 30,000Yen is Expensive
Nintendo 3DS will launch soon, and the price is 25,000Yen.SCEI's next gen "NGP" has no price yet, but should be lower than 30,000Yen. I think should be around 29,800Yen. If higher than that, gamers won't buy NGP.
What can we know from that?
When users saw these prices, they would think 3DS is cheap and NGP is expensive.
Well, that's just a simple comparison...
Well, the difference is just 5000Yen and NGP really has a high spec, so it is not that expensive. However when gamers look at this difference, they must think 3DS is much more reasonable. And I would like to explain why.
So there are reasons huh.
That's related to the price zone. Statistically, a buyer with a budget of 10,000Yen would buy stuff from 8000Yen to 18,000Yen. This is the price zone.
How about other zones?
People with budget of 20,000Yen would buy stuff from 18,000Yen to 27,000Yen. For budget of 50,000Yen, 40,000 to 80,000Yen is acceptable. So for 5000Yen budget, 4000 to 8000Yen is the zone.
Huh.
Consider game console, budget for most people is 20,000Yen. Those who bought PS3 for 60,000Yen in the beginning were not common.
Those who paid such high price were real core users or those who love new stuff.
So, for a 20,000Yen budget, price zone is 18,000 to 27,000Yen. Nintendo's 3DS is 25,000Yen and that's within the zone. On the other hand, SCEI's NGP would be 29,800Yen, out-ranged. This means NGP is hard to sell as a game console.
Quite expensive for normal game console huh.
Nintendo always set the price within this zone. Since Famicom, their consoles were under 25,000Yen. They just created the common sense of a suitable budget 20,000Yen for game console. And this sense still in effect after 30 years, we can know the talent on pricing of Nintendo's ex-CEO Hiroshi Yamauchi.
Here are the Japanese price of each Nintendo consoles on the day of launch.
  • Famicom: :14800 Yen
  • Super Famicom: 25000 Yen
  • NINTENDO64: 25000 Yen
  • NINTENDO GAMECUBE: 25000 Yen
  • Wii: 25000 Yen
  • Gameboy: 12800 Yen
  • Gameboy Pocket: 6800 Yen
  • Gameboy Light: 6800 Yen
  • Gameboy Color: 8900 Yen
  • Gameboy Advance: 9800 Yen
  • Gameboy Advance SP: 12500 Yen
  • Gameboy Micro: 12000 Yen
  • NINTENDO DS: 15000 Yen
  • NINTENDO DS Lite: 16800 Yen
  • NINTENDO DSi: 18900 Yen
  • NINTENDO DSi LL: 20000Yen
  • NINTENDO 3DS: 25000 Yen
  • Virtual Boy: 15000 Yen
All below 25,000Yen huh.
It is interesting that for portable console, the price increased gradually, and this time 3DS would sell at 25,000Yen, just the same as a home console. Nintendo just know this is the maximum acceptable price for users.
Same situation happens in game soft too.
After the popular of DS, game price is around 5000Yen now. Consider the price zone, 4000 to 8000 Yen is acceptable. If higher than that, it is hard to sell as a game. That's why FINAL FANTASY XIII can't sell over 2 million copies in Japan. It set a price of 9240Yen and that is out-ranged for many who wanted to buy.
Interesting.
So, if NGP want to be successful as a game console, it should at least set a price around 26,800Yen. If higher than that, after the launch period the sales would be low for a while.

February 21, 2011 6:59 PM | Japanese Video Game Industry | Nintendo,SCEI

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