In advance of next week's E3 event, Wedbush Morgan Securities analyst Michael Pachter has issued his own preview, taking a look at what to expect from the Expo. While he says that Microsoft's Project Natal and Sony's PlayStation Move should be the "highlight" of the show, he then goes on to say that Nintendo may "steal the show with its upcoming new handheld (scheduled for release by March 2011), the 3DS."
The hype for 3DS is building and earlier today, a report suggested that some developers familiar with the device said it's almost as powerful as a high-definition console, like PS3 or Xbox 360. We have a feeling that's an exaggeration, but we're very curious to see the final platform specifications.
As for Natal, while a permanent name will be announced at E3, Pachter notes that pricing might still come at a later date. "We do not expect pricing to be resolved at E3, and think that Microsoft continues to weigh the lifetime value of a new Natal customer against the profits that can be made by the initial hardware sale," he said.
Gamers shouldn't expect any major console price drop news to come out of E3 either. "The only price cut that we expect is for Nintendo’s DS in the U.S. (following recent price cuts in the UK and Japan). Nintendo is unlikely to drop the price of the Wii below $199 as it recently introduced a new bundle that includes Wii Sports, Wii Sports Resort, and the Wii Motion Plus. Similarly, Sony is unlikely to announce a PS3 price cut, as we believe a price reduction below $299 may lead to a loss on each unit sold. Microsoft is not expected to drop the price of the Xbox 360 below $299 either; instead, we expect the company to bundle the Natal motion controller with a redesigned (slim and black) console," he stated.
2 Comments
June 8, 2010
The biggest news for the gaming industry is happening outside of E3. The Google TV announcement, and the revamp of Apple TV, have vast implications for gaming. Imagine the potential for something similar to Android/iPhone app markets on devices connected to TVs, with their ease of use, wide range of apps, and thousands of free or low-cost apps. The current console business would be subverted in the same way that Android and iPhone are subverting the handheld gaming business. Motion controllers and 3D are merely rearranging the deck chairs into interesting patterns while the iceberg looms ahead.
I'd like to see some signs of business model innovation at E3, but I'm not holding my breath.
June 8, 2010
Interesting points Steve. The idea of Apple expanding to TVs with a box like Apple TV is something I think Pachter has mentioned to us before, but I agree, it's potentially a HUGE threat to MS, Sony and Nintendo.