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Prices of Video Game Systems Dropped By Nintendo, Microsoft and Sony Print E-mail
Tuesday, 21 May 2002
In response to Sony and Microsoft dropping the price on their Playstation 2 and X-Box game systems respectively from $299 down to $199, Nintendo has cut the price of their Game Cube 25 percent. The Nintendo Game Cube will now carry a retail price of $149.

Despite the fact that it does not feature a DVD-Video player like the PS2 and the X-Box, the Game Cube benefits from blockbuster video game titles like "Super Mario Brothers" and "The Legend of Zelda" and is targeted to a younger audience than the Microsoft and Sony units. AP reports that Nintendo is breaking even on the sale of each Game Cube and are looking to make their real score in the ultra-high margin world of video game software. With game prices ranging from $40 up to $60 or more per title, the video game industry has been able to do something that the music industry hasn’t, - maintain the perceived value of the software. A good CD that you listen to over and over can provide hundreds of hours of entertainment whereas most video games are good for about 10 to 20 hours of gameplay, but consumers seemingly don’t hesitate to drop $50 on a game at the local electronics store.

Compare the value of buying a video game to the cost of a night at the movies for two in any major city in the US. Parking in mega-malls can run as high as $3 to $10 per car. The tickets are nearing the $10 mark for non-matinee showings and there must be a popcorn and soda shortage because chances are you aren’t getting away from the concession stand without using up most of another twenty-dollar bill. This brings two hours worth of entertainment in at nearly $40. Despite record movie attendance this summer with huge films like Spiderman and Star Wars Episode II, the video game industry still wins the battle of perceived value. Now that the game consoles are even easier purchase, there are going to be more and more consumers on the market for games.

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