Haphazard Records

I'm gonna take a stab in the dark using econs terms and concepts to explain why the price for Wii will not be affected by the decreased prices of the PS3 and the XBOX 360

Here goes.

Recent decrease in the prices of 2 seventh generation consoles, the Sony Playstation 3 and Microsoft's Xbox 360, will not have a major effect on the price of Nintendo's Wii. If Nintendo does not bring the price of its Wii down, there would not be a huge drop in demand for it. Factors discussed are mainly taste and preferences and advertising.

Taste and preference plays a very important factor for the demand for Wii. The games that come bundled or complemented with Wii differ much from the ones which complements Ps3 and Xbox360. The gameplay and game types for Wii are more relaxing and easy-going. They are usually directed to families and parties, unlike its counterparts where its games are very action-packed and mainly focus on single-player options. Nintendo has already very much differentiated its product from its rivals in the market. Hence, the market demand for the Wii will not be affected by it's rivals from Sony and Microsoft. The cross elasticity for demand for the Wii will be price inelastic(XED<1). Therefore, a decrease in the price of PS3 or Xbox360 will lead to a less than proportionate change in the demand for Wii.

Advertisting plays the other major role of differentiating a product. It has aggressive advertising in the console market like it's other 2 rivals. But, Nintendo has successfully managed to make the Ps3 and Xbox360 seen has weak substitutes through advertising and carefully chosen complements. It is not rare to find games that are only playable on the Wii. Also, the Wii itself already has a different gameplay concept from its rivals. Partially virtual-reality, it is a feature that the other 2 products do not have. This already differentiates the product. Therefore, a drop in the price of Ps3 or Xbox360 will lead to a very small decrease or none at all for the demand for Wii.

Therefore, Nintendo's Wii price is not falling as quickly as PS3 or Xbox360 due to these reasons.

There's only one word to describe me from this blog post: GEEK.

I wish the econs essay test would be about this...