A look at 7-11's potential Wii slip up
GameSpot does a nice breakdown of this issue that Infendo brought up concerning the 7-11 Wii promotion and a listed approximate retail value of the console stated at $299.
Since Nintendo has already gone on record and said the price of the Wii will not go above the $250 mark, could this 7-11 slip up be a sign that Nintendo changed their mind amidst the hype? Not so much.
Conventional wisdom would suggest that perhaps the 7-11 ARV price would include some sort of package deal with the Wii, maybe an included game. The only sign that this is not the case, is the other products listed in the promotion are consistent with their normal retail value.
At the moment, Nintendo has kept quiet about the whole thing, so we'll all just have to keep a close eye on whether or not the company will go back on their sub-$250 word.
Oh, and by the way, the contest begins Nov. 1.
Reader Comments (Page 1 of 1)
Fandel @ Aug 4th 2006 10:11PM
If that 299 dollar price is actually true. Then I think that Nintendo has once again, shown the world how to snatch defeat from the jaws of victory.
GSI @ Aug 4th 2006 10:14PM
Right...and I'm sure we all trust 7-11 and their part time employees for their up-to-the-minute game industry information.
dsub @ Aug 4th 2006 10:18PM
a $299 price for Nintendo would be every bit as disatrous as the $499-599 price for the PS3. This would mean that they are selling a system that is basically a gamecube with an online service, updated CPU and a new controller for the price of an XBOX 360 core system. One of the biggest strengths nintendo has is price point. A $300 Wii sounds alot less appealing than a $250 one. I think alot of people out there would agree with me to.
Edward James @ Aug 4th 2006 10:23PM
What if Nintendo is doing the same thing that Microsoft and Sony did with their next gen systems by making two "versions" of their console? How bout a "Basic" package that will go for $250 (or $249.99) and a "Premium" for $299.99...
A "Basic" may have one controller with a nunchuck attachment while the Premium may come with a regular shaped gamepad and a game...
Either way they'll still have the cheapest next-gen console.
iceatcs @ Aug 4th 2006 10:28PM
I have been suspecting Nintendo would increase the price little due the popularity. More profit for them.
To be honest, I think Nintendo is fat-cat company. But hey, I love their products.
Pixelantes Anonymous @ Aug 4th 2006 10:28PM
Could also be a bundle price. We all know how the video game manufacturers just loooooove bundles.
ElChibo @ Aug 4th 2006 10:31PM
Oh come on I wrote that story on my site before GameSpot did, and submitted it to Joystiq, and they never posted it. Now GameSpot gets the link on Joystiq, and all the hits that comes with it... Like they need more hits. Go to my website by clicking my name and you'll see I had it first!
Montana @ Aug 4th 2006 10:52PM
As I sent in before this would confirm the pic I got from Future Shop listing the Wii as $349.99 CANADIAN.
http://members.shaw.ca/gigablade77/wii_price_upc.JPG
wanderer @ Aug 4th 2006 10:56PM
Umm, it could also be because no one knows what the price of a Wii will be and 7-11 wants to inflate the total ARV of their contest to write off more company money as advertising/promotional funds. The contest isn't even starting for months, so the estimates could easily be revised.
Seriously, contest fine print? It's like the people who look up Best Buy place holder dates and think they know when Halo 3 is coming out.
earl g @ Aug 4th 2006 10:56PM
I will not buy a Wii for more than $250. It's sleazy by Nintendo, and the hardware itself isn't worth more than $250. It's, essentially, a gamecube with a little better graphics and a new controller. Cool, great system with lots of potential, but not worth more than $250 hardware wise.
For $299, I can buy an xbox 360 that has better graphics, and has a proven, quality online service. I'm still suspect of Nintendo's online service.
Just my opinion.
Will @ Aug 4th 2006 10:57PM
"Right...and I'm sure we all trust 7-11 and their part time employees for their up-to-the-minute game industry information."
Yes, because it's the part-time guys behind the counters handling these things. :rollseyes:
There are almost 28,000 7-11's worldwide. I think it's safe to say they know how to run a business.
Companies don't just throw out guesstimates on things such as these official rules. Those rules are in place for a variety of reasons. Most pertinent from the company's standpoint is that they help cover their own ass.
Could it be a mistake? Sure, I suppose. But the odds are definitely against it. Like I said, with things like this, they don't just throw out guesstimates.
stupidgit @ Aug 4th 2006 11:07PM
"ARV" DOES stand for *approximate* retail value. Better to overguess the total price value.
bounchfx @ Aug 4th 2006 11:18PM
Did nintendo not say it won't go over 250?
I think they'll keep their promise.
hopefully at the show later this month we'll get an actual price and release date as well.
Tondog @ Aug 4th 2006 11:21PM
WTF, OMFG NINTENDO LIES!!!!!!111!!!!111!!11!11!!!!!!
Seriously, if Wii was really $300, do you think it would be worth it? I'm having my doubts...
Will @ Aug 4th 2006 11:30PM
""ARV" DOES stand for *approximate* retail value. Better to overguess the total price value."
Why?
The rules state that if for some reason the prize is unable to be awarded to a winner, 7-11 would be on the hook to give a prize of comparable or greater value. Wouldn't it therefore be better to underguess the total value? If they say it's $250, they're only on the hook for a $250 prize. But because they said it's $300, they're on the hook for at least a $300 prize.
We know that Nintendo knows the price. There's no way they can be 3 months away from launch without knowing the price. So the 7-11 people were able to work out a deal where they got 711 of the systems from Nintendo, but they were unable to find out the value of the prize, something they are required to disclose in the official rules?
But hey, let's assume they're just guessing. Why not guess $200 or $250, two much more wildly speculated price points? Why put themselves on the hook for more money?
The official rules weigh in at over 3,300 words. To think they just simply messed up one of the three main aspects of the contest (who can win, how to win, what to win) in such a detailed document is stretching it a bit. It's possible, sure, but it seems pretty unlikely.
I think the next few days will be pretty interesting. If the $300 price is wrong, you'd think Nintendo would want to say as soon as they could that it was wrong, to try and head the bad publicity off at the pass. If they say nothing, though, that might tell us all we need to know.
whisk @ Aug 4th 2006 11:48PM
Its says ARV which is approximate retail value.
The definition of approximate is almost or close to correct.
Therefore the wii can be anything but 299.99
If it was really 299.99 then it would say ERV and not ARV.
Joel @ Aug 4th 2006 11:50PM
Worth it? Honestly, I am of the belief that no game system now or in the near future is worth more than $200.
I promised Nintendo that I would only buy the Wii for $200 or less, and I intend to keep that promise. Fingers are crossed for this being wrong.
Though, as stated by others, the 'A' in 'ARV' does stand for 'APPROXIMATE', so it is very likely an inflated value.
pockyninja @ Aug 5th 2006 12:24AM
The $300 price is for a Wii and 50 Slurpees.
Peter S. @ Aug 5th 2006 12:58AM
When will people realize that "no more than $250" means no more than $250? 7-11 is just covering its ass -- plus it may just be a bundle being offered for a 300 USD value.
Anyhow--
USD Wii cost: $250 or less, most likely less. This was even announced two months ago.
END OF DISCUSSION.
LaughingTarget @ Aug 5th 2006 1:18AM
At this point in time, 7-11 needs to put SOMETHING in there. There is a good reason why they're holding out until November to run that portion of the contest, which allows them to change the ARV information prior to the start of the contest.
Listing the ARV above the actual retail price doesn't have any bearing on taxation. Contest prizes being tax deductible is a tricky situation. They have to meet a certain number of criteria before they can be considered as such. To be tax deductible, the prize has to be in company merchandise or the winner has to provide publicity for the prize winner. When any form of contractual obligation comes to play, such as attending a demonstration or providing personal information in exchange for the prize, then it can be tax deductible.
7-11 covers that nicely in line 15 which essentially ties you, permanently I might add, as a sponsor paid by one prize. Basically, they can stick your face in every commercial they make over the next hundred, thousand, million years and you will never get a dime for it. Unlikely unless you become famous otherwise, in which case 7-11 gets a free, famous spokesperson.
As for the ARV being listed at $300, this won't change the deductible amount. Simply saying it is $300 doesn't change the fact they can only use the adjusted basis of the prize as what can be deducted. Saying the ARV is $300 when in all reality they get it for $200 only lets them deduct $200 (and conversely, only adds $200 to the winner's tax return under income). 7-11 threw in $300 because they developed this contest over the past few months and are required by law to include the ARV of all prizes offered. The $300 is not unusual as the authors looked at the launch of the PS2 and Xbox and saw the $300 US price tag. Figuring that is what new consoles cost, they listed and added it as a placeholder.
This doesn't equal to a $300 Wii. 7-11 can amend the ARV at any time prior to that stage of the contest.
hey alex @ Aug 5th 2006 1:19AM
Compare the other 'instant win' prizes in the official rules, and you'll notice all the other ARV's equal the current pricing for that item.
3 months of AOL's music now is ARV $29.85, which is 9.95/month, the current cost of the service
iPod shuffle (512MB) ARV is $69.00, which is the current cost on Apple's website
So it's natural to conclude the Wii's pricing will be ARV $299.99 (US), or there will be a version available for that price.
llamapalooza87 @ Aug 5th 2006 1:42AM
Imagine if they put the ARV as $200 and then Nintendo came out with Wii at $250. That just makes NINTENDO look bad.
Also, I seriously doubt that Nintendo would LET them print the real price before it's announced. They probably just told them to print $300 so that it's not an issue.
Since Nintendo has been emphasizing the low price of Wii SO MUCH, there's no reason for them to make it the most expensive system they've ever launched.
Ian @ Aug 5th 2006 2:10AM
Maybe their recent showing at E3 made them increase the price. But I don't think its true, that would be a sony move. Remeber when Ken or some other rep said the PS3 would not go above $425 USD?
justchris @ Aug 5th 2006 2:25AM
This discussion leads me to believe that not a single one of you has ever run a successful business. This all has to do with budgetting.
This is a promotion, that promotion has to have a certain place in the budget. You have to put a number done on what you expect it to cost you in advertising, merchandise, etc. so that a cost/benefit determination can be made, and it can be okayed.
If you don't know the actual cost of everything you will need, it's in your best interest to oeverestimate how much you need, so that if you turn out to be wrong, but come in under budget, you look good, and that surplus money can be spent on something else. But if you underestimate, then end up having underbudgeted, that gets you in trouble, gets your boss in trouble, and often ends up in someone being fired. Goverment projects do this *all the time*. You always, always say you need more money than you actually think you do, and more time than it will actually take you, just to cover eventualities. It's always better to estimate up than down, because if you don't spend as much money as expect, hey extra money. If you spend more money than expected, that money has to come from somewhere and even a minor discrepancy can cause problems for the entire company.
Now, that doesn't mean the Wii *won't* be $300, but if 7-11 doesn't know the actual price, I guarantee you they overestimated it so they'd get sufficient budgetary allocation.
Jadamo @ Aug 5th 2006 2:35AM
Considering the physical size of Wii, I don't think the initial cost needs to be in the 300's. The bulky competitors obviously think "bigger = more expensive" - not the case with Nintendo. In order to see the future, one must revist the past. Nintendo is notorious for creating games that need new accessories [ie, Donkey Kong Bongos, Pokemon Microphone. Mario dance pad...]and this is where the big bucks come in. Look at the Rumble Pack, everone had to buy it separately because it made the controller vibrate. Great! The Wavebird was a first and most important innovation to GC, but we all had to have it. Now, all the vibration and wirelessness comes built-in with Wii. Maybe Nintendo will release a revamped "classic" controller in case the WiiRemote and Nunchuck get bad reviews after launch...I doubt it, but who knows??. This low price seems very, VERY appetizing to consumers, especially for the holiday season. So, for a Wii bundle with four remotes and a game, you're probably looking at $389-$400. Batteries not included. I like Nintendo, so I'll be the first in line to reserve my system!! I LOVE Mario Kart!!... Neeeeeen-tendo!, Woo-hoo!!
Jed Merrill @ Aug 5th 2006 2:58AM
I would buy a Wii for $500. I won't buy a PS3 for $500. Still, I prefer $249.
hoob @ Aug 5th 2006 3:25AM
Honestly, do any of you people who say "I won't pay any more than $250 for a Wii." really think you matter all that much? Even if a handful of people were of your mindset, I guarantee you Nintendo will make money hand over fist with the Wii. $300, $250, $200. Whatever price point, I think Nintendo's gonna be raking it in.
Honestly, acting like your money is gonna make it or break it for Nintendo.
Jacob @ Aug 5th 2006 5:07AM
Y'all need to calm down, truth is that 7-11 does not know the price of the Wii, they are guessing. 7-11 does not know the release date, in fact no one knows but Nitendo knows...
Nintendo did say it was not going to exceed $250...
My guess, since it's a little better than the GameCube (in graphic), which is at $99, the Wii should be at $149 or $199 + Wii Sports included.
Pixelantes Anonymous @ Aug 5th 2006 6:49AM
"The official rules weigh in at over 3,300 words. To think they just simply messed up one of the three main aspects of the contest (who can win, how to win, what to win) in such a detailed document is stretching it a bit. It's possible, sure, but it seems pretty unlikely."
Obviously you didn't participate in the PGR3 Worldwide Tournament this spring. Trust me, you can mess up whole sections of official rules.
the_game_master @ Aug 5th 2006 7:23AM
Nintendo Wii will be $199 in the US at launch.
Mark my words
striderhayasa @ Aug 5th 2006 8:41AM
a $299 Wii is a bad idea. At $299 you can get a core 360 that has superior tech under the hood. Not good. At $199 Nintendo hits the sweet spot with possible record breaking sales. At $149, mass hysteria, I'd buy one for myself and one for my girlfriend and use the extra cash for even more games and accessories, because it's so damn cheap.
People that say that the Wii is little better than the Cube need to get a clue. By your logic, Xbox wasn't that much better than the Cube. Look at Doom3, Forza and Ninja Gaiden and tell me the Xbox was barely more powerful than the Cube. The Wii is more powerful than the Xbox with better optimization for game development. Also considering the Gamecube still produced visually impressive games that rivaled xbox's best efforts and the potential of the Wii should be clear. The internet, gotta love with it, where the clueless want to be an authority but don't know what the hell they're talking about.
Ford Dent @ Aug 5th 2006 9:23AM
Why do people still consider the Gamecube's graphics crappy?
Hell, why are graphics still such a big deal? I own all three current-gen systems, and honestly graphics have never been a big deal. Hell, most of my favourite games aren't even 3d!
And it's okay everyone, 7-11 is just making damn sure they don't find themselves underbudgeted for the contest. Happens all the time.
That said, I'd plunk down $300 for a Wii any day, any time--but I'm hoping for a $149 price point. I'd buy one for every room in the house.
Mike Harris @ Aug 5th 2006 11:21AM
Who's willing enough to trust a place like 7-11?
Rare Hare @ Aug 5th 2006 1:54PM
"It's sleazy by Nintendo, and the hardware itself isn't worth more than $250. It's, essentially, a gamecube with a little better graphics and a new controller. Cool, great system with lots of potential, but not worth more than $250 hardware wise."
Right, just like how the Xbox 360 is, essentially, an Xbox with a little better graphics and.. oh no wait, that's all.
460 @ Aug 5th 2006 2:59PM
For the record, I'm going with the "7-11 is overbudgeting for this promo" route. Makes the most sense to me in regards to both 7-11 and Nintendo.
7-11 makes the smart business move; Nintendo protects their still secret "under $250 gauranteed" price point.
manuel @ Aug 5th 2006 3:12PM
The only reason they wrote 299$ is that expensive prizes are cooler and attract more people.
They say like, wow, a 300$ prize. (which is more that 250 or 200) Expensive prizes appeal to customers.
nick @ Aug 5th 2006 5:22PM
It doesn't make any sense for 7-11 to over estimate or attempt to keep the pricing a secret. They're a major corporation. They have lawyers. I'm sure they checked and double checked everything. You can't over estimate the value of a prize or you're going to invite yourself to a lawsuit. The value of the prize is the suggested retail price. Just because it wasn't previously published, doesn't mean they weren't informed of Nintendo's pricing plans. Obviously the two are partnering on a cross promotion. And because a prize is involved, they had to know the value of the item for their rules. The only mistake here is that 7-11 inadvertently released the pricing early, buried in their rules, when it wasn't previously announced.
Audie @ Aug 5th 2006 6:13PM
Well I think they would give you a game with the system not just the system. Like the xbox 360 dew deal. What good is a brand spankin new system with no games.
nambit @ Aug 5th 2006 7:15PM
People have to stop jumping to conclusions. Anyone who uses their brain would realize there are a few considerations that kinda blow the whole $299 speculation:
1. They mention $299US ($399 Canadian). For the record, $299 US is barely worth approx $340 Canadian.
2. They use the words "Approximate" indicating they don't know and just made an approximation. Anything in the range of $200 to $300 can be approximated as $299. Heck, looking at the $340 Canadian value of $299 US is Approximated to $399 in that promotion. That's how it works.
3. Promotions always seriously overinflate values of their prizes. There are many instances of going beyind MSRP's when indicating a prize value.
For the folks who don't know the promotion, here it is below:
"November 1, 2006 through January 31, 2007 the following Instant Prizes will be available to be won: (711) Nintendo Wii, ARV: $299.99 USD ($399.99 CDN) each..."
Eric @ Aug 5th 2006 8:57PM
There's no way the Wii will be more than $199. Every Nintendo console has hit the market at a $199 price point, and the Wii was designed and built as a budget alternative to the 360 and PS3, and $249 brings the Wii too close to the 360 Core's $299 price point to be realistic.
The Wii will launch will likely follow the 360's and PS3's trend and launch with two SKUs: a console-only bundle at $199, and a value bundle with a second controller, two Classic controller shells, and a cheap game like Wii Sports on the flash memory. 7-11's $299 price point is probably either the value bundle Wii (most likely) or the standard bundle Wii with two games.
The only thing worth mentioning in this press release is the start date of November 1st. Since 7-11 didn't mention anything about getting the Wii early, I'd assume that the Wii is launching that week or sooner.
Greg @ Aug 6th 2006 1:36AM
No. 31 "People that say that the Wii is little better than the Cube need to get a clue. By your logic, Xbox wasn't that much better than the Cube. Look at Doom3, Forza and Ninja Gaiden and tell me the Xbox was barely more powerful than the Cube. The Wii is more powerful than the Xbox with better optimization for game development".
WTF!! are you Blind or something the fact you even named some of the Graphic heavyhitters and said GC in the same sentence is rediculous! Xbox damn near had PC like graphics especially when it 1st came (pre AMD 64/geforce6 series) NO GAMECUBE GAME CAME CLOSE TO NINJA GAIDEN OR FORZA!!!! DO NOT KID YOURSELF BUDDY!!!! The closet yall had was RE4 and maybe metroid...and even those look ugly next to doom and Ninja Gaiden........Cant believe you said that
Evan @ Aug 6th 2006 9:55AM
"As I sent in before this would confirm the pic I got from Future Shop listing the Wii as $349.99 CANADIAN."
$349.99 CDN = $310 USD
If Future Shop photo price is correct, the US price would be around $300.
Like everyone else says, this would be suicide for Nintendo. I know a dozen people who were planning to pick up a Wii because [they thought] it would be cheap and fun, but I know no one who's planning to invest in a Wii as their main console.
josh @ Aug 6th 2006 11:38AM
Maybe they are just going by the 7-11 price? They charge $1.29 for chips that would be $0.99 anywhere else, after all...
splash @ Aug 6th 2006 1:22PM
Has anyone considered the approximations are the Canadian pricing? All the US numbers appear to be spot on. And all the Canadian pricing is inflated. Perhaps because the exchange rates fluctuate and all the items being offered are based on US rates.
Rare Hare @ Aug 6th 2006 4:14PM
Um, Greg?
I believe that was his point. He was saying that the Xbox had much better graphics than the GameCube (which I don't necessarily agree with, however), and that to say that the Wii is barely more powerful than the GameCube is incorrect, being that the Wii is more powerful than the Xbox.
Perhaps you should actually read a comment before jumping all over someone in a fanboy rage.
JonFitt @ Aug 7th 2006 5:33AM
Also, you've got to consider that Nintendo will then pull the usual tech company sh*t of charging £300 UKP for a $300 US item, which essentially will make the Wii cost $570 US in the UK...
vidGuy @ Aug 7th 2006 1:47PM
Wii console pricing information, coming Aug 23rd
Wii Action Pack $199
Wii console
2 Wii remotes
1 Wii nunchuck
Wii Sports on WiiDVD
Wii Action+Retro Pack $249
Wii console
2 Wii remotes
1 Wii nunchuck
Wii Sports on WiiDVD
512MB SD card
Virtual Console ("Classic") controller
Virtual Console download credit (5 games)
Disclaimer: These are my ideal bundles, and I in no way have inside information. However, I fully expect Nintendo to go this route.
If Nintendo is producing the Wii as cheaply as expected, Nintendo would only lose a few dollars per bundle. After a year or so, these bundles would be earning good cash. The first is designed to really get the "we" across with multiplayer gaming out of the box. The second bundle provides that same experience, plus the added bonus of retro games, complete with the VC controller and more storage space. Each is a definite value, which Nintendo has hinted at wanting to provide with this launch.
Regardless of how it's bundled, the Wii will cost no more than $249 USD. In addition, no Nintendo 1st or 2nd party game will release for more than $49.99. Plain and simple.
Josh @ Aug 8th 2006 1:27PM
You guys are missing something important too, it says or an equivalent value, that does not mean something that costs $300.00, it means something that costs the same as the Wii (whatever that price may be). So if the Wii came out for $50.00 and they give you an equivalent value prize, it would be $50.00 not the $300.00 that they estimated it would be. They have plenty more lawers than we have and aren't going to let some punk kid who won a contest cheat them out of money.