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

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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.

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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......


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Andrew EisenZip - And yet, you can't site a single solitary example. (And no one said you hated anyone.)08/29/2014 - 3:51pm
Andrew EisenSaint's Row: Gat Out of Hell was just announced for PC, PS3, PS4, Xbox 360 and Xbox One making it the 150th game For Everything But Wii U! Congratulations Deep Silver!08/29/2014 - 3:49pm
ZippyDSMleeI do not hate them jsut think its mostly hyperlobe.08/29/2014 - 3:40pm
Andrew EisenSleaker - I'd say that's likely. From my experience, most who have a problem with Sarkeesian's videos either want to hate them in the first place (for whatever reason) or honestly misunderstand what they're about and what they're saying.08/29/2014 - 3:16pm
james_fudgeWe appreciate your support :)08/29/2014 - 2:55pm
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TechnogeekI just want to say that while I've disagreed with the staff of this site on several occasions, it's still good to see that they're not automatically dismissing Anita's videos as a "misandrist scam" or whatever the preferred dismissive term is these days.08/29/2014 - 2:49pm
E. Zachary KnightZippy, So you can't find even one?08/29/2014 - 1:04pm
ZippyDSMleeAndrew Eisen:Right because shes prefect and never exaggerates... *rolls eyes*08/29/2014 - 12:53pm
SleakerAnd honestly, nearly all of the games she references, or images she depicts I've always cringed at and wondered why they were included in games to begin with, from pinups through explicit sexual depictions or direct abuse. I think it's cheap storytelling.08/29/2014 - 12:35pm
Sleaker@AE - aren't most people fundamentally misunderstanding her at this point? haha.. On a related note I think a lot of the backlash is coming from males that think she is telling them their 'Generic Male Fantasy' is bad and wrong.08/29/2014 - 12:33pm
Andrew EisenAnd no, I don't think the female community would be upset over the performance of a case study in and of itself. Possibly the mostivations behind such a study, the methodology or conclusions but not the mere idea of a case study.08/29/2014 - 12:29pm
Andrew EisenAmusingly, these videos aren't saying you can't/shouldn't use tropes or that sexual representations are inherently problematic so those are very silly things to have a problem with and indicate a fundamental misunderstanding of the series.08/29/2014 - 12:29pm
SleakerDo you think the female community would get extremely angry over a male doing a case study on the negative impact of sex-novels and their unrealistic depiction of males and how widespread they are in american culture?08/29/2014 - 12:25pm
SleakerThe other thing that people might find problematic is that they see no problem with sexual representations of females (or males) in games. And realistically, why is there anything wrong with sexual representations in fiction?08/29/2014 - 12:24pm
SleakerTo even discuss or bring up these issues at a cultural level to begin with. Going straight for games to many probably feels like a huge overstepping given that it's interactive story in many cases, and when you're telling a story why can't you use tropes.08/29/2014 - 12:21pm
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