Electronic Entertainment Design and Research, or EEDAR, just issued a bunch of reports detailing research on various parts of the games industry. One of those reports contains a very interesting nugget of info about Wii games: they drop in price way, way faster than games for other consoles. Called "early price protection", these price drops indicate a game is performing poorly and that retailers want to clear it out of their inventory quickly. Head EEDAR Analyst Jesse Divnich, quoted by GameDaily, says this indicates retailer misunderstanding of the Wii market.
"Because of the highly competitive and unpredictable mainstream and casual markets, EEDAR believes retailers and publishers are overly aggressive on expectations for Wii games," he continued. "This is directly leading to a higher percentage of third party Wii titles entering into early price protection. ... Aside from the often congested holiday release schedule, most publishers typically avoid releasing their big AAA core targeted titles against other AAA titles, whereas it is common to see many mainstream/casual titles, targeting similar markets, released in the same week."
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