Nintendo To Undercut Sony, Microsoft Game Consoles-Nikkei
OSAKA (Nikkei)--Nintendo Co. (7974 or J.NTD) will set the suggested retail
price of its new video-game console, to be released on Sept. 14, at Y25,000,
a company source told the Nihon Keizai Shimbun Monday.
Nintendo's "Gamecube" will be more than Y10,000 lower than Sony Computer
Entertainment Inc.'s (J.SNY) "PlayStation2" and Microsoft Corp.'s (MSFT)
"Xbox."
The company aims to ship a total of about 2.5 million units in Japan and the
U.S. this year on the strength of such a low price.
Dedicated only for video games, the Gamecube cannot play DVDs or access the
Internet, helping to keep the price low, an important factor given that
Nintendo is primarily targeting the children's market, the source noted.
In the U.S., where it will go on sale in November, the suggested retail
price will be $199 for the Gamecube and $49.90 for each software title.
Matsushita Electric Industrial Co. (6752 or J.MAT) will start producing
controllers for the console in June. However, because Matsushita's capacity
is limited to 600,000 devices a month, Nintendo will not be able to ship
more than 2.5 million units this year, the source said.
Nintendo will suggest a Y6,800 retail price for Gamecube software titles
sold in Japan. It will release two to three titles when the console goes on
sale, planning to increase the number to six by November. The company
expects to sell 6 million software units at home and abroad within the year.
(END) DOW JONES NEWS 05-21-01
09:26 AM
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