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Pachter: Next-gen consoles may be cheapest in history, Wii U doomed

Tuesday, 16th April 2013 01:08 GMT By Brenna Hillier

Industry analyst Michael Pachter believes the PlayStation 4 and especially the next Xbox may be very cheap, which is very bad news for the expensive, current-gen Wii U.

In a note to investors reported by GamesIndustry, pachter said he expects the Wii U to underperform when the NPD releases its March retail figures.

“Its fortunes appear unlikely to improve for several months, even if Nintendo decides to drop price, as there are an insufficient number of core titles that are generating interest in the console,” he said.

“We think that core gamers are far more likely to turn their attention to the PS4 (due in the holiday season) and the next Xbox, which we believe will be unveiled before E3 and have a launch alongside that of the PS4, and believe that the long-term appeal of the Wii U will be severely limited by the perception that the PS4 and next Xbox will be much more powerful with greater online integration and multimedia functionality.”

If the PlayStation 4 and Microsoft’s next console are priced reasonably, then Pachter believes Wii U sales will continue to “stagnate”.

It’s a situation Pachter considers quite likely, as he’s a believer in the service commitment model – where you’d buy a console on a contract, like a mobile phone, with an extended period committed to a particular provider. The next Xbox, in particular, with its expected IPTV focus, may end up quite cheap.

“It is likely that the next Xbox will appear more affordable to many consumers than currently anticipated, and it may capture market share faster than many expect,” Pachter said.

“We don’t expect Sony to sit idly by watching, and believe that the PS4 will follow Microsoft’s lead in short order, suggesting to us that next-generation consoles could have lower starting prices than any in history.”

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23 Comments

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  1. melonbuster1

    $199.99 hell yeah.. I’ll take both with all the launch titles! !!

    #1 1 year ago
  2. Erthazus

    “Michael Pachter believes the PlayStation 4 and especially the next Xbox may be very cheap”

    He is actually right. Look at the PS4. The cheapest hardware available from AMD without backwards compatible and even without PS1. You can’t play CD’s and stuff. Don’t forget that with each generation Sony used new formats: PS1 – CD, PS2 – DVD, PS3 – Blu-Ray, PS4 – ??? “Blu-Ray”.

    and that’s just to play current gen games in 1080p with better AA and a bit better quality. Next gen is the same generation right now but with 1080p.. wow…

    PC’s are going 4K way already and WiiU is just a kitchen sink.

    #2 1 year ago
  3. Zohar

    He’s right about WiiU. We already know Unreal Engine 4 won’t be on the device so that’s a HUGE chunk of next gen games that will straight up not be available. It’s also not clear if Frostbite 2 will see lots of action on the Wii U. I’m pretty sure it’s already been confirmed no BF4 for WiiU.

    He’s also right about not having core Nintendo games. I want a WiiU but I’m waiting for more Nintendo first party games since that’s the only reason I’d want one.

    If MS and Sony have base prices of ~$400 to buy outright and $199 or so for a contract model, Nintendo really only has their exclusives to fall back on and $350 is a big hurdle for a lot of people to play the new Mario Kart/Metroid/Zelda.

    #3 1 year ago
  4. Schwarzerwind

    He might want to ask the cell phone industry about how much people love buying things on contracts. Even T-Mobile has come out against it. Meanwhile, Metro PCS, a non-contract carrier (and one of the biggest of those I believe) has skyrocketed.

    Myself and some people I know were very interested in the advertised $199 XBox 360 a couple months back, until we saw the fine print locking you into a 2-year XBox Live “experience”. No thanks.

    Sure, people with great credit and a history of jumping into contracts would adopt this model of buying a contract console and having their credit card/debit card locked into it for a few years, but most people, I would wager, would pass.

    People really, REALLY want the Wii U to die, and die early. If anything can be said for certain of the next-gen systems, it’s that.

    #4 1 year ago
  5. Telepathic.Geometry

    It’d be a real shame if Wii U were to die out there, a real shame. That said, I could easily see it happening, not this generation obviously, no matter how bad it gets, I reckon Ninty has one more generation in them…

    By the way, does any believe that the PS4 can cost less than $450/$500 without prescription? Because I don’t…

    #5 1 year ago
  6. eorl

    Zohar, you do know that the Unreal Engine 4 can run on Wii U. The previous comment that Epic Games made was refuted by the man who said it, stating that the Wii U can use the Unreal Engine 4, just that Epic Games won’t be doing so, and it will be up to developers to port it over.

    Also does this mean the Wii U will be the greatest thing ever, considering Pachter is wrong a majority of the time?

    #6 1 year ago
  7. Brenna Hillier

    Wowgtp, stop including that link in all your comments. I’m marking them all as spam.

    #7 1 year ago
  8. Just-Joe

    For someone who seems to not like the Wii U, he sure talks about it a lot.

    #8 1 year ago
  9. Joe_Gamer

    I’m gonna buy a Wii-U just to stick it to Pachter…

    @1 Where did you pull that absurd price from? The only way a console could get that cheap is by seriously skimping on hardware OR directly subsidizing the box with contractual obligations for the consumers, neither is appealing to me.

    I game on PC and I buy my kid Nintendos, I guess male teenagers are(as always) the demographic M$/Sony are banking on.

    #9 1 year ago
  10. HaMmOdY

    Next gen consoles won’t be cheaper than $400. Why do you think it’s gonna be cheap ?!

    #10 1 year ago
  11. Francis O

    2004 – Pachter “the DS is doomed”
    2006 – Pachter “the Wii is doomed”
    2011 – Pachter “the 3DS is doomed”
    2013 – Pachter “the Wii U is doomed”

    Nothing to see here folks, just a old troll who doesn’t play video games here.

    #11 1 year ago
  12. mojo

    i can see this subsidised consoles becoming a thing, although i personaly dont like it.

    MS and Sony both allready testetd the waters, MS with their 199 Xbox (although i dont know how successfull that was) and in my country there have been quite a few deals where you got a PS3 for free when you signed a contract for mobile phones or ISPs and i heard from quite a few people who did this.

    #12 1 year ago
  13. OmegaSlayer

    @9 LOL
    If you buy a WiiU you only stick it to yourself.
    Not even Nintendo knows what to do with that turd they released on the market.
    They only tell people to wait.

    #13 1 year ago
  14. The_Red

    @11
    To be fair though, even a broken clock is right twice a day, so…

    #14 1 year ago
  15. Gregard

    @14 well, it’s not broken yet…. just wrong :P

    #15 1 year ago
  16. cartina

    Funny, personally I’ve out down 148 hours on my Wii U past four weeks. I do agree games are scarce, but honestly, if one more person says MS/Sony/Nintendo is dead/doomed/bankrupt… But I guess I’m naive and can’t see the “signs”.

    #16 1 year ago
  17. Vice

    It’s not the console prices I worry about, it’s games…

    #17 1 year ago
  18. NooB GobliN

    @17
    Agreed. A killer line-up of games is a highly motivating factor for purchase. WiiU without the Zelda, Metroid and Mario adventure isn’t selling. Mario Cart? Super Smash? Come on! (Gob style)

    #18 1 year ago
  19. DrDamn

    I think both Sony and MS will be going for £300/$400 main entry price. The design of both systems is to support this. This might not satisfy the @2′s out there but this is a very sensible approach from both.

    #19 1 year ago
  20. RocknRolla

    Consoles are going to be cheaper because of all the Plus services that they have deals with like netflix PS-Plus and so on.. they know they will be making money out of that, for us consumers this is good, but tbo I prefer a expensive console like the PS3 was :) because you know you are getting real quality :) it held for 6 years lol, but lets wait and see how this all plays out :)

    #20 1 year ago
  21. RocknRolla

    I am getting the PS4 for the exclusives Sony has, and a high end PC for games like BF4, ARMA 3 :)

    #21 1 year ago
  22. megaawesome

    Michael Patcher aka The Man that Hates Nintendo, something negative will always come out of his mouth about the company. Not a shocker, but the least gamers can do is game on what we want, let others game on what they want, and basically stfu with fanboy bull$hit, because the gaming industry as a whole needs continued support, so who in the f*ck are you fighting against?

    #22 1 year ago
  23. demonkat0420

    contracts are not going to happen for me

    #23 1 year ago