With the Wii being sold out for 14 months straight and still selling like water in the desert, I would think Nintendo executives might be hard-pressed to find a reason to drop the price on the goose that lays golden eggs, but that’s exactly what superstar analyst Michael Pachter, of Wedbush Morgan Securities, suggests they do.
In his opinion, to stay competitive Nintendo should stop bundling-in the cultural phenomenon that is “Wii Sports”, and sell the uber-popular console for a cool $199 dollars. He figures that 80% of new customers will buy a game to go with their Wii’s anyway, and that Nintendo would only lose $10 bucks in process. He says this should help stem the advances of the more grown up HD systems, with their higher tech specs and multimedia capabilities, that are more likely to end up as the center pieces of a families living room, than in the kids playroom.
Additionally, he goes onto say that Nintendo should have nothing to worry about until Wii owners decide to pick up a second system to compliment their Wii’s, and that he expects 3-to-4 million more Wii’s to hit the market worldwide this year with an estimated 1.5 million of those coming to the U.S.. With big-box retailers like Target and Wal-Mart finally keeping some units on store shelves with increasing regularity, this year is shaping up to be just as big as last year.
And then there’s this…
“I don’t perceive a big threat [to the Wii] until late 2008, with the impact felt in late 2009. By that time — as I’ve said before, Nintendo will likely combat the perception of “HD video inferiority” by introducing a “Wii-HD” model.”