Cowen & Company analyst Doug Creutz has issued a note today to investors about what he would like to see at – and what he expects to come out of – the Electronic Entertainment Expo next week. Creutz says that he believes Nintendo may announce a "badly needed" price cut at E3, and says that gamers should not expect PS4, Xbox One pricing info or details on used game schemes from the big players next week.
But Creutz had the most dire predictions for the Wii U. "After seven months on the market, Nintendo's Wii U is struggling mightily," Creutz said. "We note that the company has essentially abandoned the field to Microsoft and Sony at this year's E3 as Nintendo will not be holding a press conference. However, we do think there is a decent chance that Nintendo could announce a price cut for the Wii U at E3 in an effort to bring attention to the console and boost sales. We note that the console will have a series of key new games coming out through the late summer and fall, beginning with Pikmin 3 in August. Nintendo's window for igniting interest in its console is closing with Microsoft and Sony's competing machines soon to come to market."
Creutz also said that he believes Microsoft and Sony will not reveal the retail prices of the Xbox One or PlayStation 4 next week at E3, instead leaving those details for events later in the year. He also said that he does not expect news concerning used game policies for both next-gen platforms to be discussed.
"We also believe Microsoft likely knows this…and thus is unlikely to fumble the ball at the 1-yard line on this issue by getting greedy," he said. "However, we suspect they will avoid the issue as much as possible at E3, despite calls from the gaming community for clarity."
On Microsoft, he said that the company needs to make the case for the Xbox One to the core gaming community. They can do this by showing lots and lots of games. He thinks Sony's challenge will be to reestablish its relevance in the console space and to avoid a "me too" presentation that doesn't stand out from Microsoft's.
E3 2013 kicks off on Monday, June 10 with briefings from Microsoft, Electronic Arts, Ubisoft, and Sony. The show begins later in the week.