Analyst: Wii will need price cut when PS3-360 motion controllers arrive
Despite remaining adamant for the most part about not cutting the Wii price, Nintendo eventually gave in and brought the hardware down to US$ 200. But if you ask Janco Partners analyst Mike Hickey, they’ll need to cut it down further to stay competitive.
Despite remaining adamant for the most part about not cutting the Wii price, Nintendo eventually gave in and brought the hardware down to US$ 200. But if you ask Janco Partners analyst Mike Hickey, they’ll need to cut it down further to stay competitive.
“We acknowledge that a traditional hardware cycle would now be nearing completion, leaving further market growth dependent on continued and aggressive hardware price cuts, software price cuts, hardware extensions and an economic lift,” Hickey said, adding that they expect “continued market weakness through ’10 for Nintendo related products.”
With the release of Natal and Arc/Sphere/nameless glowing lollipop, Nintendo would be losing its motion control advantage over its rivals. “We believe Nintendo needs to cut the price of their console from US$ 200 to US$ 150 immediately, as they should establish as meaningful of an installed base as possible before the Natal and Arc are introduced,” the analyst continued.
Furthermore, Hickey also believes that a portion of Nintendo’s casual game market will begin to migrate over to the PS3 and Xbox 360 when their respective motion controllers are launched. “We expect a potential up-migration from a portion of Nintendo’s Wii market, as many new gaming console households choose to upscale their game entertainment experience, enjoy a broader array of multi-media options and experience ‘the new’ casual gaming opportunities,” said Hickey.
[via IndustryGamers]