Wedbush: Industry Rebound Possible on New Hardware

June 21, 2010 -

Wedbush analysts Michael Pachter and Edward Woo, who no longer think that the video game industry is "recession proof" (remember that?) are now saying that the new hardware introduced during E3 last week in Los Angeles has the potential to reinvigorate the sector. The major hurdle, they say, is pricing. The Wedbush duo were apparently most impressed with the Nintendo 3DS, which provides gamers (not under the age of 7, says Nintendo, because 3D is the devil to your eyes at that tender age) with 3D gaming and entertainment without the need for goofy 3D glasses. The 3DS is rumored to have a price point of $250 or more, but the pair do not believe it will matter, saying that Nintendo will sell millions of units.

Microsoft's Kinect, on the other hand, will have to be priced reasonably to sell, they believe:

"We think that if Microsoft prices Kinect close to cost (which we estimate to be around $70), it will see a very high attach rate, with the potential to drive $200 – 400 in lifetime value from each Kinect household," the pair states. "On the other hand, it is equally logical to charge a very high price for the device, especially if it is expected to be supply-constrained. We are not yet convinced that the hard core Xbox 360 user, who typically 'controls' decisions about his/her console, will find the game lineup for Kinect sufficiently compelling to purchase the device at a price point over $100, and think that pricing at the higher point would severely limit sales."

You don't have to be an "analyst" to figure that out. On the PlayStation Move, the pair offers a similar opinion:

"If purchased as part of a bundle, the all-in cost to play with Move will approach $180, which we think is beyond the reach of the typical household. We think that Sony's Move is truly impressive, but remain concerned that initial sales could disappoint."

Sony announced that the Move controller would cost around $50 each. But Pachter points out that consumer confusion may ensue over what or how many peripherals you might need to play a game; some Move enabled titles use the camera and one controller, while others require two for one person and there is also a separate entertainment "navigation device (a remote) that can be purchased for around $30. That confusion could fluster some consumers to no end, though most hardcore gamers that want move are quite capable of reading the back of a game box to figure it out..

On the software front, Pachter and Woo believe that this year's E3 lineup "was perhaps the most impressive in years" (?) naming MTV's Dance Central as the Kinect's "killer app," and predicting that Activision's Call of Duty: Black Ops will be this year's best selling game. A pretty safe prediction on the latter..

Source: Gamasutra

Posted in

Comments

Re: Wedbush: Industry Rebound Possible on New Hardware

 well he has a gaming web show with over 100 episodes, and has appeared on every major gaming show sever times, but I guess that doesn't matter. (this was intended as a reply to an above comment)

Re: Wedbush: Industry Rebound Possible on New Hardware

Kinect and Move will have to be reasonably priced to sell?

 

They won't sell, I guess.  Neither MS nor Sony are known for pricing anything reasonably, and since they still lose money for everything they sell that isn't a game, I don't see that changing for these.

---

With the first link, the chain is forged.

--- With the first link, the chain is forged.

Re: Wedbush: Industry Rebound Possible on New Hardware

When are gaming websites finally going to realize that no gamer gives a fuck what Mr. Pachter "thinks", "believes" or, especially, "says"?.

And now he comes with a sidekick. My god, what a bore.

Re: Wedbush: Industry Rebound Possible on New Hardware

I would love a job where you get paid a lot of money to say the most obviouse stuff like this.

http://www.magicinkgaming.com/

Re: Wedbush: Industry Rebound Possible on New Hardware

What are you smoking? New hardware costs more than games........ dose not compute......


I have a dream, break the chains of copy right oppression! http://zippydsmlee.wordpress.com/2010/05/21/cigital-disobedience/


Copyright infringement is nothing more than civil disobedience to a bad set of laws. Let's renegotiate them.

---

http://zippydsm.deviantart.com/

 
Forgot your password?
Username :
Password :

Shout box

You're not permitted to post shouts.
PHX Corp@Jessy I actually saw it on gamespot, seems that Nintendo accidently turned Samus into a Badass11/23/2014 - 9:28pm
Jessy HartAnybody else see the Samus Amiibo with 2 arm canons?11/23/2014 - 9:10pm
Andrew EisenNeo - If you're not bleeding then it's probably not you who needs to go to the doctor.11/23/2014 - 5:45pm
Wonderkarpgood. that kind of behavior is unnecessary.11/23/2014 - 5:44pm
WonderkarpGeorgina Young - Are Video Games Sexist? https://www.youtube.com/watch?v=rX9LV4GuG9E11/23/2014 - 5:43pm
ZippyDSMleehttp://deadspin.com/starcraft-player-says-hell-rape-opponent-is-booted-f-1662346891/+Fahey11/23/2014 - 5:40pm
Wonderkarphttps://www.youtube.com/watch?v=O4a9tMGSTG411/23/2014 - 5:32pm
WonderkarpDan Vavra of Warhorse Studios at the Nordic eCommerce Summit 2014 on Game Journalism and why ethics are important11/23/2014 - 5:27pm
WonderkarpGame Dev Ashley Ross on the Block/Blacklist https://www.reddit.com/r/KotakuInAction/comments/2n603f/thoughts_on_the_recent_igdaggautoblocker_incident/11/23/2014 - 5:25pm
Wonderkarpwhich is interesting cause this the first one 100% made by 2k games after the THQ buy11/23/2014 - 4:17pm
Wonderkarpbleh. the more I play WWE 2k15 on PS4, the more I get disappointed.11/23/2014 - 4:09pm
Neo_DrKefkaIt happened around 1030 this morning. I was not blooding because blood was on my hands11/23/2014 - 3:50pm
Andrew EisenThat depends on a lot. Were you bleeding at the time you requested to leave or did you want to leave work to go to the doctor over an incident that happened on a different day that you didn't file an incident report for?11/23/2014 - 3:21pm
Neo_DrKefkaThat would be a major OSHA violation correct?11/23/2014 - 1:54pm
Neo_DrKefkaOff topic but I was at work and went over to the first aid kit to get some eye drops. I look at my hand and noticed blood on my hands. My employers said their is no incident report and they won't send me to see a doctor and that I am abandoning my job.11/23/2014 - 1:54pm
MaskedPixelanteThe more I hear about AC Unity being rushed out, the more I think Ubisoft was telling the truth about why they couldn't add female co-op models.11/23/2014 - 1:14pm
IanCI wouldnt say the 360/PS3 version were superior. They were different games.11/23/2014 - 11:49am
MechaTama31It's hard to rank my top 5 against eachother, but they would include Ghostbusters, Back to the Future (all of it), Monty Python and the Holy Grail, The Shawshank Redemption, and The Princess Bride.11/23/2014 - 11:09am
Andrew EisenTrue, but I liked the fact that rather than do a crappy looking version of the PS3/360 version, it went with an art style more suited to the Wii's strengths.11/23/2014 - 12:26am
Wonderkarpif I had the money, I'd buy one of those expensive proton pack replicas11/22/2014 - 11:25pm
 

Be Heard - Contact Your Politician