Mike Hickey, a Senior Research Analyst following emerging and existing technology companies for Janco Partners, says the Wii needs another price drop to ward off the impending motion-control hardware debuts from Microsoft and Sony.
“We believe Nintendo needs to cut the price of their console from $200 to $150 immediately, as they should establish as meaningful of an installed base as possible before the Natal and Arc are introduced,” Hickey wrote.
Hickey drums it up a bit more and said a significant portion of the Wii audience will jump ship in favor of Project Natal and Sony’s Motion Controller when they release.
“The casual hardware extensions from both Sony and Microsoft will likely drive both additional hardware and software sales, for casual and non-gaming mass market opportunities,” he added. “We expect a potential up-migration from a portion of Nintendo’s Wii market, as many new gaming console households chose to upscale their game entertainment experience, enjoy a broader array of multi-media options and experience “the new” casual gaming opportunities.”
How Nintendo responds or reacts to the coming of new motion-control technology from its competitors will be a spectacle to watch. Grab some popcorn!