Janco Partners analyst Mike Hickey suggests that more game console price cuts are needed in 2010 to spur slumping software sales, starting with Nintendo Wii. Industry Gamers reports on Hickey’s comments. The news outlet quotes Hickey as saying that console makers should dramatically cut price points in calendar 10, to continue hardware sales momentum from the holiday. Hickey said that traditionally the console cycle would be nearing full maturity now, leaving the market dependent on price cuts for hardware and software as well as hardware extensions. Expanding on the latter, Hickey said he doesn’t expect Microsoft to drop the Xbox 360 price prior to the launch of its hardware add-on, the motion controller Natal. He added that he expects near-term success for Xbox 360 as well as Sony PlayStation 3 based on the introduction of motion controllers for both consoles, giving them a secondary casual market cycle. But he highlighted Nintendo’s precarious position, with its handheld DS facing competition from Apple devices, and the Wii facing upmigration of casual console game players to Microsoft and Sony’s more powerful consoles. Hickey said Nintendo needs to cut the price of Wii from $200 to $150 immediately to build a solid install base before Microsoft and Sony motion controllers hit the market. Industry Gamers also cites Hickey s comments that publishers should expect continued pricing pressure on premium priced games in 2010, with too many high-profile releases on slate for the market to sustain. Read more at Industry Gamers {link no longer active}.
Analyst: Game Consoles Need More Price Cuts
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