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‘Wii U is priced too high, expect a price cut next year’ – Pachter

Friday, 14th September 2012 11:54 GMT By Dave Cook

Wii U has been priced too highly to keep people buying throughout 2013, Wedbush analyst Michael Pachter has told CVG. The analyst also speculates that the console will see a price cut before holiday season 2013.

Speaking with CVG, Pachter theorised, “We think that Wii U’s price points are appropriate given likely demand from Nintendo’s core fanbase, but believe that pricing will be too high to sustain demand given current competition from other consoles and tablets,” he said in a research note.”

Meanwhile Nintendo of America CEO Reggie Fils-Aime has stated that the company’s $299 pricing gives players ‘strong value’.

Pachter continued, “In our view, Nintendo was smart to introduce the Wii U at higher price points in order to maximize initial sales from its core audience. We expect 1 – 1.5 million Wii U units to be shipped into the US by the end of GameStop’s fiscal year (January).”

“We expect demand from Nintendo’s core fan base to remain high through the end of its March 31 fiscal year. Once initial demand begins to subside, we expect Nintendo to lower prices”, he added.

“We don’t expect a price cut until summer 2013, at the earliest,” Pachter concluded, “but do expect a cut prior to holiday 2013. Any prospective price cut will depend largely on competition, which we expect to materialize in the coming weeks.”

What do you think? Is $299 too high? Speak your brains below.

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25 Comments

  1. stealth

    its already selling out

    #1 2 years ago
  2. Beta

    Thanks for the update Captain Obvious. I want this man’s job ;P

    Confident I’ll find an affordable UK price somewhere I usually do :)

    #2 2 years ago
  3. Fin

    @1

    It is? Got a source on that?

    #3 2 years ago
  4. Freek

    His job is financial analyst, his hobby is trolling gamers/games media.

    #4 2 years ago
  5. AHA-Lambda

    ok I have to ask, waht is so bad about $299? Isn’t this already comparable to the PS3 at $249 and the 360 Elite at $299? For a brand new console I’m not seeing the issue =/

    #5 2 years ago
  6. The_Red

    Actually, he says the price is right for Nintendo fans:

    “We think that Wii U’s price points are appropriate given likely demand from Nintendo’s core fanbase, but believe that pricing will be too high to sustain demand”
    It’s sustaining of sales that might be a problem with 299. I actually think Nintendo is being rather smart. They now a lot of N fans will get the system at launch. The moment this rush stops, they will lower the price for the mass market and then lower it again by the time next-gen system come out next year.

    #6 2 years ago
  7. DrDamn

    @6
    I agree they have set the price to sell to fans now, but they hope they can maintain it – see the Reggie article – http://www.vg247.com/2012/09/14/wii-u-price-we-think-299-is-a-really-strong-value-3ds-repricing-was-painful-for-us-reggie-talks-money

    Personally I don’t think they will be able to though. Unless it really takes off.

    #7 2 years ago
  8. DSB

    @5 It’s the exact same price that the Wii launched with, so I think it’s fair to say that he’s talking out of his ass.

    Let’s not forget that Pachter was also the guy who said the iPhone “wasn’t a viable gaming platform”.

    I reckon he thinks that the 360 and PS3 are still the most exciting things on the planet, so the Wii U needs to be competing with them. But I think he’s forgetting how people react to “new stuff”, yet again.

    All it takes is a little bit of early adoption and it’ll be flying off the shelves.

    #8 2 years ago
  9. DrDamn

    @8
    Wii was $249, Wii-U is $299/$349

    #9 2 years ago
  10. OlderGamer

    Need to read the entire article folks, not just the headlines.

    #10 2 years ago
  11. ManuOtaku

    I think the price is right for various reasons, first the Wii came at $249, and this is aprox. 6 to 8 times more powerfull, second most of the wii users will not have to buy more controllers they already have, so its a sweeter deal for them, for new commers it will be like any other new console, third comparing with the other current two consoles is not that much especially for the basic model, and even the Deluxe one is including a game and a 10% discount on future games, and this console has more power than the other two consoles, therefore to sum things up i think is fair comparing with other previous launches, but the important thing is how the consumer will see those values, i think the deluxe option is great with a game included, and a future 10% discount on games, i think that will be key to some consumers.

    #11 2 years ago
  12. Kabby

    I want to know the UK price.

    #12 2 years ago
  13. AHA-Lambda

    UK price might be more of a problem I admit. At £249 (according to amazon) it is a harder sell than the US price imo. You can get a base 360 for almost half that price.

    #13 2 years ago
  14. _LarZen_

    It’s super cheap in the US..but then again the economy in the US is going down the hill.

    Where I live it wil be around $499…but then again the economy in this country is realy good.

    #14 2 years ago
  15. DSB

    @9 My bad, it was 300 dollars in the UK. Still, not exactly a fortune.

    I think the Wii succeeded because everybody could afford to put it under a tree, or fetch one for a birthday.

    I’ve gifted two of those things, personally. I don’t think 50 dollars prices it out of that spot.

    Personally my next buy is gonna be a PS3.

    #15 2 years ago
  16. Eskander

    299 in North America is too much in my opinion. Should of come in at 249. Is there going to be a game bundled ala wii sports / resorts? Some might laugh at this now, but it was a big selling point for a lot of people.

    #16 2 years ago
  17. Kabby

    Your next buy is a PS3. What?

    #17 2 years ago
  18. OlderGamer

    Eskander Nintendoland is included with the deluxe bundle. It is not included with the standard unit.

    #18 2 years ago
  19. xino

    @5
    the issue is, Wii U is basically 7th gen console with little 8 gen feature.
    what is the 8th gen feature? 2 gb Ram, HUD on controller….that is all!

    worst yet…many games coming out on Wii U are ports!
    how many copy n paste Mario games will you play?

    Ps3 cost £200!!! how long has it been out for?
    xbox 360 comes in 2 packages yet you can get it for £200 (for 250gb!)

    and a console that is basically 7th gen ARRIVING late cost £250.
    Sounds retarded to me!

    one thing that pisses me off is the package.
    £300 for the black console with LITTLE added accs. 8gb and 32gb
    and what is the comparison for PS3 and XBox consoles?
    4gb and 250gb xbox 360! 80gb, 160gb and 320gb ps3!

    sorry but Nintendo are doing this to rip off their fans once again!
    because they will introduce another version that is better with same price.

    #19 2 years ago
  20. DSB

    @17 What, what?

    I’m saying I’d rather grab a PS3 and play those games than go with a Wii U at launch :P

    #20 2 years ago
  21. PEYJ

    @20

    So you’re a pc-guy only for the moment?

    #21 2 years ago
  22. Kabby

    You don’t already own a PS3?

    #22 2 years ago
  23. DSB

    Oh I do, I just need the second one for a paperweight. Mine isn’t expensive enough :P

    #23 2 years ago
  24. Kabby

    But the Wii is everyone’s paperweight. You are a strange guy!

    #24 2 years ago
  25. magnumfinger

    I heard Pachter will be dead after 60 years. Oh wait, did I just state the obvious?

    #25 2 years ago

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