Wedbush: Industry Rebound Possible on New Hardware

June 21, 2010 -

Wedbush analysts Michael Pachter and Edward Woo, who no longer think that the video game industry is "recession proof" (remember that?) are now saying that the new hardware introduced during E3 last week in Los Angeles has the potential to reinvigorate the sector. The major hurdle, they say, is pricing. The Wedbush duo were apparently most impressed with the Nintendo 3DS, which provides gamers (not under the age of 7, says Nintendo, because 3D is the devil to your eyes at that tender age) with 3D gaming and entertainment without the need for goofy 3D glasses. The 3DS is rumored to have a price point of $250 or more, but the pair do not believe it will matter, saying that Nintendo will sell millions of units.

Microsoft's Kinect, on the other hand, will have to be priced reasonably to sell, they believe:

"We think that if Microsoft prices Kinect close to cost (which we estimate to be around $70), it will see a very high attach rate, with the potential to drive $200 – 400 in lifetime value from each Kinect household," the pair states. "On the other hand, it is equally logical to charge a very high price for the device, especially if it is expected to be supply-constrained. We are not yet convinced that the hard core Xbox 360 user, who typically 'controls' decisions about his/her console, will find the game lineup for Kinect sufficiently compelling to purchase the device at a price point over $100, and think that pricing at the higher point would severely limit sales."

You don't have to be an "analyst" to figure that out. On the PlayStation Move, the pair offers a similar opinion:

"If purchased as part of a bundle, the all-in cost to play with Move will approach $180, which we think is beyond the reach of the typical household. We think that Sony's Move is truly impressive, but remain concerned that initial sales could disappoint."

Sony announced that the Move controller would cost around $50 each. But Pachter points out that consumer confusion may ensue over what or how many peripherals you might need to play a game; some Move enabled titles use the camera and one controller, while others require two for one person and there is also a separate entertainment "navigation device (a remote) that can be purchased for around $30. That confusion could fluster some consumers to no end, though most hardcore gamers that want move are quite capable of reading the back of a game box to figure it out..

On the software front, Pachter and Woo believe that this year's E3 lineup "was perhaps the most impressive in years" (?) naming MTV's Dance Central as the Kinect's "killer app," and predicting that Activision's Call of Duty: Black Ops will be this year's best selling game. A pretty safe prediction on the latter..

Source: Gamasutra

Posted in

Comments

Re: Wedbush: Industry Rebound Possible on New Hardware

 well he has a gaming web show with over 100 episodes, and has appeared on every major gaming show sever times, but I guess that doesn't matter. (this was intended as a reply to an above comment)

Re: Wedbush: Industry Rebound Possible on New Hardware

Kinect and Move will have to be reasonably priced to sell?

 

They won't sell, I guess.  Neither MS nor Sony are known for pricing anything reasonably, and since they still lose money for everything they sell that isn't a game, I don't see that changing for these.

---

With the first link, the chain is forged.

--- With the first link, the chain is forged.

Re: Wedbush: Industry Rebound Possible on New Hardware

When are gaming websites finally going to realize that no gamer gives a fuck what Mr. Pachter "thinks", "believes" or, especially, "says"?.

And now he comes with a sidekick. My god, what a bore.

Re: Wedbush: Industry Rebound Possible on New Hardware

I would love a job where you get paid a lot of money to say the most obviouse stuff like this.

http://www.magicinkgaming.com/

Re: Wedbush: Industry Rebound Possible on New Hardware

What are you smoking? New hardware costs more than games........ dose not compute......


I have a dream, break the chains of copy right oppression! http://zippydsmlee.wordpress.com/2010/05/21/cigital-disobedience/


Copyright infringement is nothing more than civil disobedience to a bad set of laws. Let's renegotiate them.

---

Patreon

Deviantart

 
Forgot your password?
Username :
Password :

Shout box

You're not permitted to post shouts.
Matthew Wilsonhttps://twitter.com/NintendoAmerica/status/581579256704081920 for those who did not see it zelda wont be at e3 ether.03/28/2015 - 2:22pm
ZippyDSMleeGot my keyboard working now now trying to sort and customize my stuff back to where I had it.03/28/2015 - 2:03pm
InfophileSony's customer service has always been crap, but up till now it's been manageable crap. A few cases of people having to pay for being hacked at worst, the Other OS removal... This one is going to be much worse for them.03/28/2015 - 1:34pm
WymorenceWhen did Sony start doing the ransomware stuff...? other than the old BMG rootkit stuff that is.03/28/2015 - 12:45pm
ZippyDSMleeother keyboards work but my keyboard will not work on it works on all the laptops tho...03/27/2015 - 11:22pm
ZippyDSMleeComp crashed acouple days ago and ate my keybaord drivers worse yet it's mislabel the drivers or hardware ID or soemthing and can not install the right drivers even manually it gives errors... going to try another restore point....03/27/2015 - 11:18pm
PHX Corphttp://ps4daily.com/2015/03/ps4-update-bricks-gamers-console-sony-wants-150-to-fix-it/ New PS4 update bricks gamers’ console, Sony wants $150 to fix it03/27/2015 - 11:11pm
MaskedPixelantehttp://www.newsarama.com/23947-axel-alonso-says-x-men-will-have-new-world-post-secret-wars.html Marvel gives 20th Century Fox the finger, takes their ball and segregates the mutant population in their own universe. According to rumors at least.03/27/2015 - 10:21pm
Papa MidnightSure thing!03/27/2015 - 9:00pm
Andrew EisenPM - Thanks, I've updated the story.03/27/2015 - 8:59pm
Papa Midnighthttp://arstechnica.com/tech-policy/2015/03/13-year-old-minecraft-player-confesses-to-swatting-police-say/03/27/2015 - 8:38pm
Andrew EisenThat would mean either Nintendo's next home console will be out by next year or the next Zelda game is suffering a two year delay. Both extraordinarily unlikely.03/27/2015 - 8:34pm
Matthew Wilsonsome people are thinking we might have a Twilight Princess situation on our hands, what do you guys think?03/27/2015 - 8:01pm
MechaCrashMiyamoto once said "a delayed game is eventually good, a bad game is bad forever." While this can be taken to excess, it is good that Nintendo remembers it.03/27/2015 - 7:44pm
MaskedPixelanteYay for it not being a buggy mess like AC Unity. Boo that it got delayed til November 2016.03/27/2015 - 7:07pm
Andrew EisenAgreed. Considering we've seen nothing of the game (and those who did see it last E3, said it was super duper early) I would be quite surprised to see it this year.03/27/2015 - 5:28pm
Matthew WilsonI am sure star fox is 2016 too.03/27/2015 - 5:14pm
ZippyDSMleeThe primary reasons I would get a Nintendo system is Zelda and Metroid, Metroid prime collection was beyond words awesome even if 3 was the weakest one. I played TWP on the emulator I have Skyward Sword but like TWP I been putting it off…. LOL03/27/2015 - 5:14pm
Daniel LewisI actually thought star fox would be the game to be delayed,hopefully that isn't as well!03/27/2015 - 5:13pm
Daniel Lewiswoah post shared at the same time matthew,you just beat me!03/27/2015 - 5:11pm
 

Be Heard - Contact Your Politician