In a stunning show that game industry analysts indeed are fallible human beings, Wedbush Morgan's Michael Pachter has changed his mind on Natal's supposed price. The prolific analyst prognosticated last year that price would be the primary factor in moving Natal hardware, leading him to predict that it would launch for less than $50. However, he now tells IndustryGamers that it will likely cost more, noting, "consumers will come to believe that the product and software has a lot of value." Furthermore, Pachter says that the higher that Microsoft and Sony price their motion controls, the less likely a consumer is to buy the competing product. In other words, if you spend $100 on Natal, you probably won't be too keen to plunk down another $100 for Sony's motion controller (and vice versa).
Pachter also tackles the DSi XL. He has some choice words for the beefy handheld, pointing out the $60 difference between the DS Lite and DSi XL models. "I'm not sure that bigger screens provide the value that Nintendo thinks," says Pachter, adding his belief that the entire DS line is due for a price cut. He concludes the device won't succeed at launch "since it costs only $10 less than a Wii."
Other topics discussed include Richard Garriott's foray into social media, the marketing of Dante's Inferno and the specter of third party success on the Wii -- "most third party Wii games just plain suck," says Pachter.
Reader Comments (58)
Posted: Feb 25th 2010 7:57PM DBuckEye said
"most third party Wii games just plain suck," says Pachter.
So how do you explain Zack and Wiki not selling, o mighty Pach-Attack?
So how do you explain Zack and Wiki not selling, o mighty Pach-Attack?
Posted: Feb 25th 2010 8:09PM Co said
You act as if Zak and Wiki was donned to be the Wii's GTA 3 or something before it came out.
It's quite simply one of the most niche titles available. Just because it's deemed a great game by the people that loved it doesn't mean that equals milestone sales.
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It's quite simply one of the most niche titles available. Just because it's deemed a great game by the people that loved it doesn't mean that equals milestone sales.
Posted: Feb 25th 2010 8:39PM andsoitgoes said
Melty, you realize that Just Dance has sold an insane amount of copies, especially in the UK?
So yes, people are willing to pay for garbage, especially if the garbage equates to watching your friends get drunk and embarass themselves.
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So yes, people are willing to pay for garbage, especially if the garbage equates to watching your friends get drunk and embarass themselves.
Posted: Feb 25th 2010 8:02PM BPMOmega XBL PSN Steam said
DSi XL has done quite well in Japan (currently the best selling DS model for quite some time), so I'd say it's too easy to count it out in America. Granted, success in one country won't necessarily translate to success in another.
I, personally, don't care about the DSi XL. My DSi is fine just the way it is.
But if they release a navy blue DSi XL... I will be compelled to get one.
I, personally, don't care about the DSi XL. My DSi is fine just the way it is.
But if they release a navy blue DSi XL... I will be compelled to get one.
Posted: Feb 25th 2010 8:02PM Shadowbender said
That pic above makes me believe Pachter has psychic, mind-bending powers.
Posted: Feb 25th 2010 8:16PM Shadowbender said
I see some bottles in the background...Further investigation is needed.
That, or the man behind him is a ghost.
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That, or the man behind him is a ghost.
Posted: Feb 26th 2010 8:49AM xGeneral DEATHxDEETH82 said
I think the real story here is the fact that no one's pointing out the Ghost of Liberace cavorting behind him.
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Posted: Feb 25th 2010 8:07PM (Unverified) said
What/who gives Pachter so much credibility? tbh, I know people who post on internet message boards who do the same thing he does, and are more right more often.
Posted: Feb 25th 2010 8:08PM ch3burashka said
"Y'all remember what I said about the games industry, you know, 'cause it's my job to predict stuff? Just wanted to let y'all know I'm changing my mind."
"Don't worry; this time, it's for real."
tl;dr Why is he an analyst if he can change his mind just like that?
"Don't worry; this time, it's for real."
tl;dr Why is he an analyst if he can change his mind just like that?
Posted: Feb 25th 2010 8:26PM TraceurRyuk Prepping for LBP2 said
I wonder what would happen if I told my boss "I'm human, it happens"...
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Posted: Feb 26th 2010 12:42AM Shagittarius said
"I wonder what would happen if I told my boss "I'm human, it happens"..."
Then he'd say, "One more time and your fired, now get to work, fries are up."
Reply
Then he'd say, "One more time and your fired, now get to work, fries are up."
Posted: Feb 25th 2010 8:08PM Gaddes said
I still don't understand why he's held in such high regard... a lot of his "analyses" are either "no duh"s or end up being off anyway. Anyone here could do his "job" just as well.
Posted: Feb 25th 2010 8:17PM Johnnynumber5 is powered by cell said
I'm sure the XL will sell but it won't push lots of units out the gate.
Posted: Feb 25th 2010 8:19PM Ridgecity said
He predicted less than $50 and now says it's more than $50?? wow, doesn't sound like much of an expert to me...
I do wish he stood by his predictions, not change them a year later. His credibility has no validity if he acts like that. He gets paid to say what will happen not flip a coin.
I do wish he stood by his predictions, not change them a year later. His credibility has no validity if he acts like that. He gets paid to say what will happen not flip a coin.
Posted: Feb 25th 2010 8:19PM MLC said
Natal will be $50 my ass. MS is horrible in pricing accessories. I think Natal will be no less then $70.
The PS Eye and 1 "Arc" controller will be around $60. Each PS "Arc" controller could be around $30-$40.
The PS Eye and 1 "Arc" controller will be around $60. Each PS "Arc" controller could be around $30-$40.
Posted: Feb 25th 2010 10:31PM johnperkins21 said
They are indeed terrible at pricing accessories. But it doesn't much matter, as I wouldn't buy Natal if it were fifty cents, let alone fifty dollars.
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Posted: Feb 25th 2010 8:27PM GuitarHero666 said
I remember this was the guy that said that Borderlands was "on the death row" before it was released.
Basically, I don't trust him.
Basically, I don't trust him.
Posted: Feb 25th 2010 8:31PM Nintendo Tim said
An analyst who went back on his initial assumption that was made too early, and "updated" it because there's more evidence to believe otherwise.
I know Mike is one of the more "famous" analysts (only because he's the more sane one out there with a level head on his shoulders), but most people that frequent this site - or video games as a whole - can "predict" the same crap he's making a living off of.
Honestly, who here thinks the DSi XL is going to sell well outside of Japan?
I know Mike is one of the more "famous" analysts (only because he's the more sane one out there with a level head on his shoulders), but most people that frequent this site - or video games as a whole - can "predict" the same crap he's making a living off of.
Honestly, who here thinks the DSi XL is going to sell well outside of Japan?
Posted: Feb 25th 2010 8:48PM (Unverified) said
I don't know how it could sell well in the US.. You prob. would end up looking just as douchey with the XL as with an iPad.
Reply
Posted: Feb 25th 2010 8:38PM (Unverified) said
Didn't he say Wii HD would come out last year? Yeah I'm still waiting for that
Posted: Feb 25th 2010 8:47PM (Unverified) said
If MS is still charging $100 bux for hard drives that should be half the price, I would also doubt they'd charge less than 50 for what is marketed as a revolutionary add-on. I personally don't see myself getting Natal at all right now. I wasn't convinced by Milo so they better have a killer app for there as-yet unproven tech. The Arc, on the other hand, is essentially a wiimote and I have played the Wii so I know there is potential there. But I don't think I'd pay more than $50 for either one when there are so many games coming out this year that work with the controllers I ALREADY HAVE.
Posted: Feb 25th 2010 9:11PM Puertoricarious said
"Furthermore, Pachter says that the higher that Microsoft and Sony price their motion controls, the less likely a consumer is to buy the competing product. In other words, if you spend $100 on Natal, you probably won't be too keen to plunk down another $100 for Sony's motion controller (and vice versa)."
for being an industry analyst, pachter doesn't seem to understand basic economics. you LOWER your price to keep customers buying your product and to stay competitive, not raise it. raising your prices to keep your customers from buying another product IS ONLY GOING TO MAKE THEM BUY THE OTHER PRODUCT.
for being an industry analyst, pachter doesn't seem to understand basic economics. you LOWER your price to keep customers buying your product and to stay competitive, not raise it. raising your prices to keep your customers from buying another product IS ONLY GOING TO MAKE THEM BUY THE OTHER PRODUCT.
Posted: Feb 25th 2010 9:16PM (Unverified) said
He's overlooking one important detail about the DSi XL: It has the letters "DS" in it. Therefore it will sell out the ass
Posted: Feb 25th 2010 9:18PM Goaliegeek said
So a giant DS wont sell, but a giant iPod touch will?
Posted: Feb 25th 2010 9:20PM MGTrey said
"In other words, if you spend $100 on Natal, you probably won't be too keen to plunk down another $100 for Sony's motion controller (and vice versa)."
I won't be too keen on spending 100$ dollars on either by themselves, nevermind a bill for each.
These motion control systems are supposed to be bringing in new customers, anyways. Casuals who are just fine with their Wii won't want to buy an expensive piece of equipment before they even factor in the cost of the console and games themselves.
I won't be too keen on spending 100$ dollars on either by themselves, nevermind a bill for each.
These motion control systems are supposed to be bringing in new customers, anyways. Casuals who are just fine with their Wii won't want to buy an expensive piece of equipment before they even factor in the cost of the console and games themselves.
Posted: Feb 25th 2010 9:57PM KaBob799 said
Why in the world is he comparing the XL with the Lite? The XL is competing with the DSi for sales, not the Lite.
Posted: Feb 25th 2010 10:12PM krizoitz said
@Ridgecity
If only Microsoft would release it for EXACTLY $50 just to make him be wrong twice :)
If only Microsoft would release it for EXACTLY $50 just to make him be wrong twice :)
Posted: Feb 25th 2010 11:09PM benheck said
There is no way in heaven or hell the Natal will only cost $50.
Hell, we might be lucky if it's "only" $99.
Course for many of us who think motion gaming is just a stupid waste of time, Natal will set us back $0! Great bargain, that.
Hell, we might be lucky if it's "only" $99.
Course for many of us who think motion gaming is just a stupid waste of time, Natal will set us back $0! Great bargain, that.
Posted: Feb 26th 2010 12:25AM Tatsunoku vs Fapcom said
It will probably be the price of a Wii. Speaking of that, isn't Natal a Wii duct taped to a webcam?
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Posted: Feb 25th 2010 11:31PM (Unverified) said
Usually the exact opposite happens with his predictions. So, if I read this right. Natal will be $49.99 and the DSi XL will be the bigger seller than sliced bread.
Posted: Feb 26th 2010 9:31PM yugo said
$ !
Posted: Feb 26th 2010 1:42AM ructus said
Was he like, "Most 3rd party Nintendo games suck AHAHAHAHA ..." cos thats how it looks from that pic.
Posted: Feb 26th 2010 2:22AM SnatchTease said
Prachter couldn't look up and predict rain.
Posted: Feb 26th 2010 2:39AM (Unverified) said
sounds like he gets bummed off microsoft and sony because most devs think it wont do that well at retail including ubisoft and boss of square enix and i dont think it will do well either natal will be the biggest fail having to imagine everything in thin air will put most people off or it could fool everyone at first then it will spread that its a joke arc is basically a wiimote so i think lots of games will work well with arc in fact it might sell about 8 million in its first year capcom have lots of cross platform games with this arc and the wiimote they are using wii 's MT FRAMEWORK game engine to make the games in question ground up then porting them to ps3 ive heard this is to save on dev costs by 33%
Posted: Feb 26th 2010 2:56AM (Unverified) said
i bet the next cross platform game by CAPCOM is ps3/wii
Posted: Feb 26th 2010 11:16AM ViolentSquirrel said
Yeah, for sure. I do not want to spend time wiggling my arms in front of my TV, pretending to grasp virtual objects.
This is idea sounds ridiculous to me and I won't buy that junk even if it's cheap.
This is idea sounds ridiculous to me and I won't buy that junk even if it's cheap.
Posted: Feb 26th 2010 8:44AM JRMG said
Wait. Doesn't the PS3 motion controller need the playstation eye to work? And doesn't the playstation eye already cost like $35 retail? 35 + 50 is already 85 bucks--minimum! Then, if you consider that Natal is even more impressive/complex technology than what Sony is offering, Selling Natatl for anything less than $85-100 is near impossible...unless they want to sell it at a loss (Or sell the technology in increments like Nintendo and their motion plus).
Wow! I've already come up with the same conclusion as Pachter--and it took me 2 minutes.
And about the DSi XL:
Some are saying it won't sell very well, but like the phenomenon that was "Brain Age" I'm willing to give grandma and grandpa the benefit of the doubt. Also, consider that this is America--where only the biggest and fattest are revered. If American consumers are still thinking of buying a DS, then it's a given they'll go for the XL: it's the "value size"!
Wow! I've already come up with the same conclusion as Pachter--and it took me 2 minutes.
And about the DSi XL:
Some are saying it won't sell very well, but like the phenomenon that was "Brain Age" I'm willing to give grandma and grandpa the benefit of the doubt. Also, consider that this is America--where only the biggest and fattest are revered. If American consumers are still thinking of buying a DS, then it's a given they'll go for the XL: it's the "value size"!
Posted: Feb 26th 2010 9:07AM Tuxy79 said
Excuse me?
I thought the whole point of removing the on-board processor was to reduce cost. Anything more than 50 bucks and the last whisp of interest I had left in the peripheral will dissapear.
I thought the whole point of removing the on-board processor was to reduce cost. Anything more than 50 bucks and the last whisp of interest I had left in the peripheral will dissapear.
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