Pachter: Wii could receive bundles or price drop, DS price drop possible
“We think that a rebound in Wii hardware sales is possible only with price cuts or a more attractive software bundle. At its current run rate, Nintendo is tracking to sales of only 12 – 15 million Wiis, compared to its reiterated guidance for sales of 26 million. An increase of this magnitude is possible only with a more attractive software bundle or a price cut. We think it is likely that Nintendo will experiment with alternative bundles, possibly including a Wii Sports Resort bundle or a Wii Motion Plus bundle in the next several weeks…We think that Nintendo’s reiteration of its Wii hardware guidance indicates its intention to cut price on the hardware prior to holiday. Should alternative bundles fail to sufficiently drive hardware sales, we think that the company is in a good position to drop the price of the Wii to below $200. In our view, a price cut on the core DS unit to $99.99 is possible, should Nintendo decide it is necessary to achieve its shipment forecast.” – Wedbush Morgan Securities analyst Michael Pachter
According to Mr. Pachter, if Nintendo were to cut the price of the Wii to below $200, the company may decide to take the original Wii Sports out of the package.
