Pachter: Not Even a Price Cut can Help Wii U Sell Units

April 15, 2013 -

Wedbush Securities analyst Michael Pachter said in a preview note sent out to investors late last week that not even a price cut to Nintendo's Wii U will help it sell more units. He also predicts that Nintendo will report another month of weak sales for the console later this week.

"The only key hardware device to underperform our expectations was the Wii U," Pachter said of last month's numbers, "and its fortunes appear unlikely to improve for several months, even if Nintendo decides to drop price, as there are an insufficient number of core titles that are generating interest in the console. We think that core gamers are far more likely to turn their attention to the PS4 (due in the holiday season) and the next Xbox, which we believe will be unveiled before E3 and have a launch alongside that of the PS4, and believe that the long-term appeal of the Wii U will be severely limited by the perception that the PS4 and next Xbox will be much more powerful with greater online integration and multimedia functionality."

Pachter adds that if pricing is reasonable on the nest consoles system from Sony and Microsoft then the Wii U will really have a hard time moving units.

"We think that the next-generation consoles will perform a wide range of multimedia functions. We should learn more in the coming months, but we expect the next Xbox to have an IPTV tuner that will allow an MSO to deliver services over the Internet outside of the MSO's regulated geographic boundaries. If we are right, any of Microsoft's MSO partners will have an incentive to subsidize the purchase of the next Xbox in exchange for a long-term service commitment (similar to the cell phone model). If the subsidies are steep, it is likely that the next Xbox will appear more affordable to many consumers than currently anticipated, and it may capture market share faster than many expect. We don't expect Sony to sit idly by watching, and believe that the PS4 will follow Microsoft's lead in short order, suggesting to us that next-generation consoles could have lower starting prices than any in history," he said.

Source: GII


Comments

Re: Pachter: Not Even a Price Cut can Help Wii U Sell Units

Wanna sell me a WiiU? Give me Zelda and Metroid games!

Re: Pachter: Not Even a Price Cut can Help Wii U Sell Units

I'll confess that when more games start releasing for it it'll likely helps sales, but to claim that the Wii U has no games is kinda, weird, since it clearly has games. I've been playing Lego City Undercover for a few weeks now, and the Eshop is getting some really nice titles on it.

And I saw his claim that no one will get it because it's a glorified DS, I have a DS, and a Wii U, and I have each for games that won't be on the other.

Re: Pachter: Not Even a Price Cut can Help Wii U Sell Units

LEGO City Undercover does look awesome and by all accounts is a fantastic game but it, Monster Hunter 3 Ultimate and a six-month late port of Need for Speed are the only games of note to release for the console so far this year (actually I think the only other games to release this year were the reportedly terrible Fist of the North Star and a year-late port of Amazing Spiderman).

We have Injustice tomorrow.  Deus Ex, Sniper Elite V2, and Resident Evil Revelations come out in May and while I'm happy to have them, they're all ports of old games.

And that's it until the end of summer.  Pretty bleak.

 

Andrew Eisen

 

Re: Pachter: Not Even a Price Cut can Help Wii U Sell Units

I'll concede to that, then again I tend to be pretty patient with these things. I'm not saying other gamers aren't patient and I can understand the frustration with the current lineup.

Especially since no original Zelda has even been announced yet, just an HD remake.

Re: Pachter: Not Even a Price Cut can Help Wii U Sell Units

Eshop titles don't hold a lot of weight when it comes to Walmart shopping. When Walmart shoppers are looking at consoles, what they see is what leaves an impression. If they see a console sitting next to only 12 or so games, they think that is a weak console. When they compare that console to the others that have 4-5 dozen games next to them, they think the WiiU is even weaker.

Re: Pachter: Not Even a Price Cut can Help Wii U Sell Units

I suspect Nitnendo will do two things - cut the basic set version, and reduce the cost of the premium set. 

And you know what? I reckon that will help increase sales.

Re: Pachter: Not Even a Price Cut can Help Wii U Sell Units

I don't think a price cut is going to matter much until games start coming out.

 

Andrew Eisen

Re: Pachter: Not Even a Price Cut can Help Wii U Sell Units

"Wedbush Securities analyst Michael Pachter said in a preview note sent out to investors late last week that not even a price cut to Nintendo's Wii U will help it sell more units."

Well yeah, not when there are no games to play.  And with almost every single multi-console release skipping the Wii U (about three dozen titles), a lot of potential buyers are going to think twice.

 

Andrew Eisen

Re: Pachter: Not Even a Price Cut can Help Wii U Sell Units

Pachter adds that if pricing is reasonable on the nest consoles system from Sony and Microsoft then the Wii U will really have a hard time moving units.

Yes, because that will totally happen.

Re: Pachter: Not Even a Price Cut can Help Wii U Sell Units

This whole tablet crazy that every system must now be a tablet or the OS has to be designed to look like a tablet menu NgE, New PS STORE, Windows 8 are nothing but crap
 
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