Analyst: Wii to lose momentum when PS3 under $300

Wedbush Morgan analyst Michael Pachter said in this month’s EGM that he thinks “the Wii momentum will last until the Playstation 3 is under $300”. Now that seems like a pretty wild statement to make.

It has become very clear that Wii isn’t even trying to compete for the same audience that Microsoft and Sony are fighting for. Wii is doing its own thing entirely — tapping into an untapped market by introducing video games to all the moms, dads and grandparents out there — so why would 360’s or PS3’s price drops affect its sales ? Let’s take 360’s Arcade unit for example – it’s in the same price range yet it has no effect on Wii’s sales and Nintendo is still having trouble keeping up with consumer demand. The average person buying a Wii is after an entirely different experience than those purchasing 360’s and PS3’s.

But even if, for the sake of argument, the price drops of other consoles should somehow, somewhere start affecting Wii’s sales, who’s to say Nintendo can’t drop the price as well ? After all, Nintendo is the only one of the big three who made a profit on each unit sold since day one.