wedbush
Latest
3DS sold under cost since price cut, Nintendo 'hoping' to profit by March 2013
Nintendo took a big hit last year when it dropped the price of its then-nascent handheld, the 3DS, to $170 just a few months after initial launch. Such a hit, apparently, that Nintendo is selling the unit for less than it costs the company to produce, as revealed in the company's latest financial earnings. "Its hardware has been sold below cost because of its significant price cut in the fiscal year ended March 31, 2012," the financial report says.But don't count Nintendo out! The company says it "expects to cease selling it below cost by the middle of the fiscal year ending March 31, 2013." Which, in normal human terms, means Nintendo expects to start making money on the console around August of this year. So, you know, if you're really trying to stick it to Nintendo, go buy the 3DS between now and August. That'll show 'em!The 3DS currently sells for $170, down from the $250 price tag it launched with back March of 2011.Update: We've added context from financial analyst extraordinaires Michael Pachter (of Wedbush Securities) and Jesse Divnich (of EEDAR) just below the break.
Pachter: PS2 software sales to become 'almost irrelevant' in 2009
Despite the fact that the PS2 saw a sizable price cut just three months ago, Michael Pachter is claiming that the system is nearing the point of complete insignificance. In Wedbush's "2009 Interactive Industry Report," Pachter explains that he expects "PS2 software sales to decline sufficiently (around 64%) to be almost irrelevant to overall software sales growth, with PS2 software comprising less than 4% of overall software sales in 2009."Sony's probably not ready to give up on its most cost-efficient console, but as history has proven, nothing gold can stay in the fast-paced, constantly evolving world of video gaming hardware.
More analysts on non-global PS3 launch, one sees Wii in better position
We've chimed in on Sony's latest blunder so now it's someone else's turn. Who wants to offer their opinionated projections? Hmm? Oh, it looks like Ben Bajarin of Creative Strategies, Michael Pachter or Wedbush Morgans, and Mike Wolf of ABI Research all have something to say. Of all the things that is said among them, Mr. Pachter's statements are the only ones that are overall Wii-positive."To a limited extent, Microsoft will [benefit]. There aren't very many guys that will buy both a PS3 and a Xbox 360. There are maybe a couple (100,000-200,000) that will get a 360 instead... but a lot of people are going to buy a Wii, and it'll reverse the order of purchasing in Europe, with people getting the Wii first, then the PS3. It benefits Nintendo in the onset... MS also wins in terms of a PR battle."Pachter seems to be pro-Wii in the wake of Sony's latest news. His recent comments prior to this story support this. Of course you all already know our viewpoints on the matter, so let's hear from you. How does Sony's latest news affect us Nintendo-loving gamers out there?
Next generation console victor to be decided by Hollywood?
Wedbush Morgan Securities is of the mind that the battle between Toshiba's HD-DVD and Sony's Blu-ray disc format could very well dictate the conclusion of the next generation console wars. The report suggests that the film studios could be the ones responsible for deciding the victor in the next generation console war by choosing which format to support in distributing their movies to retail, whether it be on HD-DVD or Sony's Blu-ray technology. Considering that the gaming industry is pulling in as much revenue as the film industry, whichever format Hollywood favors could heavily tip the scales, without a doubt. Who do you think is going to come out on top of this conflict, HD-DVD or Blu-ray?
