GameStop CEO Questions Sony's Price Cuts, Predicts Big Nintendo Game In '09

Illustration for article titled GameStop CEO Questions Sonys Price Cuts, Predicts Big Nintendo Game In 09

Don Matteo is the head honcho at GameStop, so he's in a position to know a few things. Things like what kind of price cut the PlayStation 3 needs and what Nintendo's planning for 2009.

Matteo tells CNBC that the recent price drop on the PlayStation 2 "really wasn't worth doing" and wonders if a $50 price drop on the PlayStation 3 will really make that much of a difference. GameStop's big boss also thinks a Wii price drop might not be too far in the future, as demand for the console slows. Nintendo can afford it, he thinks, as the company "used to break even on the Wii, but now they're making a considerable margin."

He's also expected something big from Nintendo by end of year.

"We think there will be a Nintendo key property coming out by the end of the year," he says. "They haven't given us any insight, but they have told us to reserve [shelf] space."

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Perhaps Matteo is referring to the already announced The Legend of Zelda: Spirit Tracks, but perhaps Nintendo has something else up its sleeve for the holidays. Oh, who are we kidding? Of course they've got something.

GameStop Wants Cheaper Consoles, Predicts Hot Titles [CNBC]

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DISCUSSION

cornerman8-old
cornerman8

I think the PS3's problems lie with awareness rather than pricing. A headstart by the competition, a less than stellar launch, a host of new technology to explain, and a lack of advertising (likely stemming from the heavy cost of development) all contribute to Sony's current situation.

Yes, I actually think their value proposition pitch holds some merit. Folks can get an mp3 player for $20 bucks, but they pay 10x as much for an ipod...in some cases every time Apple releases a new model. Same thing for cell phones etc. You get what you 'want'. People could just not like the PS3, but I believe its mostly due to folks not being familar with it.

As for the Wii, Nintendo just has to find another "gimmick" (lack of a better word) to reignite the casual market.

I'm sure gamestop would love all the consoles to be cheaper. He knows prices will come down eventually, as they always do. Perhaps he's speaking to investors to put pressure on the manufacturers?