Pachter's Podium: Apple's Gaming Console, Wii Sports Resort to Dominate '09 and More

Wii Price Cut?

IG: Is a Wii price cut absolutely necessary this year? Nintendo has a huge lead, and while demand for Wii has slowed, it's still outselling the other consoles every month. Couldn't Nintendo do just fine without cutting price?

Pachter: Nintendo doesn't have to cut the price of the Wii, but if they don't, they will likely miss their 25 million unit goal for the year (down only 1 million from last year).  They're tracking down 40 - 50% year-over-year, and holiday demand won't get them to 25 million without a price cut.  They can do what they wish, but if they report earnings in late July and maintain their hardware shipment forecast, it is highly likely that they will cut price to get there.  You're right that they will do just fine without a price cut, but they won't likely hit their hardware forecast without one.