Sony Corporation (ADR) (SNE), Nintendo Co., Ltd (ADR) (NTDOY): Microsoft Corporation (MSFT)’s Xbox One Is Too Expensive

Back in June, Sony Corporation (ADR) (NYSE:SNE) launched a stealth attack on Microsoft Corporation (NASDAQ:MSFT). This week it’s been Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY) attacking from the other side.

When Microsoft Corporation (NASDAQ:MSFT) hits the market with the Xbox One in November, its $499 price point is going to stand out against Sony Corporation (ADR) (NYSE:SNE)’s PS4 at $399 and a deluxe Wii U bundle at $299. Fans of the Xbox console franchise will argue that it’s worthy of a premium. They’ll say the Wii U is for kids. They’ll point out that the PS4 was able to undercut Microsoft Corporation (NASDAQ:MSFT)’s machine by leaving out the motion-sensing camera that’s included with the Xbox One. That may all be true, but history hasn’t been kind to the higher-priced console. That was the PS3’s role last round, and Sony Corporation (ADR) (NYSE:SNE)’s market leadership position in this country suffered as a result of initially pricing its machine at least $100 higher than the competition.

Microsoft Corporation (NASDAQ:MSFT) probably thought it had this generation in the bag when it announced its pricing and release strategy in kicking off the annual E3 gaming powwow back in June. It couldn’t have imagined that Sony Corporation (ADR) (NYSE:SNE) would turn heads a day later by unveiling a lower price for its PS4 and taking shots at the Xbox One’s restrictive ways.

Everything seemed to be settling down for Mr. Softy, but then Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY)’s desperation kicked in.

Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY)’s move earlier this week — slashing the price of its deluxe Wii U console by $50 and making it an even better deal by bundling it with a new Zelda game for the Wii U — wasn’t a surprise. The Japanese gaming pioneer cleared only 160,000 systems worldwide in its latest quarter. A price cut was a given, and it had to act before the November PS4 and Xbox One rollouts to hammer home its value proposition.

Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY) didn’t stop there. It also unveiled the 2DS handheld gaming system at $129. Microsoft Corporation (NASDAQ:MSFT) doesn’t have a portable gaming system on the market, but it will be one more item for adult gamers and parents of young gamers to consider as they size up their holiday shopping priorities this year.