Reggie Fils-Aime, EVP of Sales and Marketing for Nintendo of America, hints that the Revolution may be introduced at a lower price than both the Xbox 360 and the PS3. How low will they go?
It’s an interesting but risky strategy – one Nintendo has tried before. A lower price isn’t always good: it can signal lower quality, older technology, and/or less “prestige” to the consumer. In fact, if the Revolution puts the Xbox 360 in the middle of the pack, price-wise (see Merrill Lynch’s PS3 price predictions) then Nintendo could be doing Microsoft a big favor. Researchers have found that consumers will lean towards the middle-priced choice in a given selection. It’s called the compromise effect, and it can be very powerful.
That said, if Nintendo does a really good job of lining up great content prior to launch, a lower price could just lead more people to buy the console and use the savings on games.