Joystiq

Pachter: PS4, Xbox One under $400; current-gen price drops this year

David Hinkle — Mon, 03 Jun 2013 14:00:00 EST

Wedbush Morgan analyst Michael Pachter is predicting a sub-$400 pricing scheme for the PS4 and Xbox One - $349.99 for the PS4 and $399.99 for Xbox One. This comes from the investment firm's annual E3 preview report, which unsurprisingly calls out the next generation consoles as the main focus of this year's Electronic Entertainment Expo in Los Angeles.

Pachter says the Xbox One pricing "makes sense given that the Xbox 360 Pro debuted at that price point in November 2005," though he stresses that this is without any type of subscription or subsidies program - like a cable television provider. As for PS4, Pachter asserts it'll make its debut at a lower price point than the PS3 as that $599 debut "negatively impacted its long-term popularity."

"We also expect the hardware manufacturers to announce price cuts," Pachter writes in the report (pdf link). He predicts both the PS3 and Xbox 360 will be reduced by at least $50 in the run-up to the holidays, while he says the Wii will be knocked down to $99 - maybe we'll get our own Wii Mini? Pachter also says Nintendo may try to increase Wii U sales through a price cut or "a bundle that includes some of its more popular software." Finally, he anticipates a PS Vita price drop, too.

Pachter: PS4, Xbox One under $400; current-gen price drops this year originally appeared on Joystiq on Mon, 03 Jun 2013 14:00:00 EST. Please see our terms for use of feeds.

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Wedbush thinks Grand Theft Auto 5 will launch in October

Ben Gilbert — Wed, 09 May 2012 14:15:00 EST

With this morning's announcement that BioShock Infinite will now launch in February 2013, publisher Take-Two Interactive altered more than a game's launch date. Take-Two is a publicly traded company, and one fewer gigantic product launch during the holiday season - arguably Take-Two's only holiday product launch, unless you count fall launches of Borderlands 2 and XCOM: Enemy Unknown as "holiday" - means that shareholders will want to know what's up. That worry is reflected in Take-Two's stock price, which took a five percent hit since the market opened this morning.

But when Infinite got pushed out of the holiday season, it opened the slot up for another high-profile Take-Two-published title: Grand Theft Auto 5. "In our view, the delay opens the window for Grand Theft Auto V to be released in October 2012," Michael Pachter of Webush Securities wrote in an email this morning, echoing a release window leak from earlier this year.

In his eyes, Infinite wasn't just delayed to make it "something even more extraordinary," as Ken Levine put it, but because the folks at Rockstar, "notified Take-Two that GTA V would be ready for October." He believes this resulted in Take-Two offering Irrational Games an extra few months to prepare BioShock Infinite. His logic? "The studio [Rockstar Games] has scheduled every prior GTA release during that month (with GTA IV delayed to April 2008, due to bugs in the PS3 version)."

Furthermore, Pachter and co. speculate we could hear more about GTA 5's launch date "as early as May 22" during a scheduled quarterly investor call, or perhaps in a few more weeks at E3 2012. We've yet to hear back from Irrational, Rockstar, or Take-Two on the subject.

Wedbush thinks Grand Theft Auto 5 will launch in October originally appeared on Joystiq on Wed, 09 May 2012 14:15:00 EST. Please see our terms for use of feeds.

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3DS sold under cost since price cut, Nintendo 'hoping' to profit by March 2013

Ben Gilbert — Thu, 26 Apr 2012 09:50:00 EST

Nintendo took a big hit last year when it dropped the price of its then-nascent handheld, the 3DS, to $170 just a few months after initial launch. Such a hit, apparently, that Nintendo is selling the unit for less than it costs the company to produce, as revealed in the company's latest financial earnings. "Its hardware has been sold below cost because of its significant price cut in the fiscal year ended March 31, 2012," the financial report says.

But don't count Nintendo out! The company says it "expects to cease selling it below cost by the middle of the fiscal year ending March 31, 2013." Which, in normal human terms, means Nintendo expects to start making money on the console around August of this year. So, you know, if you're really trying to stick it to Nintendo, go buy the 3DS between now and August. That'll show 'em!

The 3DS currently sells for $170, down from the $250 price tag it launched with back March of 2011.

Update: We've added context from financial analyst extraordinaires Michael Pachter (of Wedbush Securities) and Jesse Divnich (of EEDAR) just below the break.

Continue reading 3DS sold under cost since price cut, Nintendo 'hoping' to profit by March 2013

3DS sold under cost since price cut, Nintendo 'hoping' to profit by March 2013 originally appeared on Joystiq on Thu, 26 Apr 2012 09:50:00 EST. Please see our terms for use of feeds.

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Pachter: 3DS will cost $250 in the U.S., likely won't come stateside before April

Griffin McElroy — Thu, 30 Sep 2010 09:50:00 EST

Filed under: Weird But True, Opinions, New In Pop Culture

Wedbush Morgan analyst Michael Pachter recently shared with us his insight on yesterday's pricing and release date announcement for the Nintendo 3DS. He predicts that the 25,000 yen ($299) price point for the Japanese launch of the handheld will depreciate somewhat as it travels to Western markets, arriving in the U.S. for $250, Europe for €250 and the U.K. for £200. And although Nintendo of America CEO Reggie Fils-Aime stated the 3DS would "launch in all of our major markets by March 31, 2011," Pachter foresees an even later arrival in the West.

"Looking at how Nintendo does things," Pachter said, "if you're launching February 26 in Japan, and their earnings reports say before the end of the fiscal year in U.S. and Europe -- is there any prayer, even a 1 percent chance that they'll launch a week later in the U.S., March 5? No freaking way. It's not even remotely possible they're launching first half of March. I'm betting it gets delayed until April in Europe and U.S.."

Some analysts have balked at the fairly high Japanese launch price of the 3DS. Though Pachter admits the launch price is "higher than what's customary" for the handheld market, he said the market will bear the toll -- a lesson hard learned by Nintendo when it launched its latest home console.

"They screwed up on the Wii. It was sold out for two full years! You just couldn't get one," Pachter said. "What was the point? They should have sold it for $300 at launch, and made another $50 for every Wii sold during that period. It sold so competitively in the first few weeks that it was going for $1,000 on eBay -- and they absolutely don't want to see the 3DS on eBay."

Gallery: Nintendo 3DS final hardware

Continue reading Pachter: 3DS will cost $250 in the U.S., likely won't come stateside before April

Pachter: 3DS will cost $250 in the U.S., likely won't come stateside before April originally appeared on Joystiq on Thu, 30 Sep 2010 09:50:00 EST. Please see our terms for use of feeds.

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Roundup: Analyst commentary on Kinect pricing

Alexander Sliwinski — Tue, 20 Jul 2010 13:32:00 EST

Filed under: Weird But True, Opinions, New In Pop Culture

Everybody has an opinion at the moment about Kinect's $150 price tag, but let's hear what the analysts who get paid for their opinions think. We've got reactions from EEDAR's Jesse Divnich, Lazard's Colin Sebastian and Wedbush Morgan's Michael Pachter, after the break.

Continue reading Roundup: Analyst commentary on Kinect pricing

Roundup: Analyst commentary on Kinect pricing originally appeared on Joystiq on Tue, 20 Jul 2010 13:32:00 EST. Please see our terms for use of feeds.

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Pachter: EA, DICE and Respawn will impact future Call of Duty sales

David Hinkle — Thu, 22 Apr 2010 21:15:00 EST

Do you imagine that every morning, when Michael Pachter wakes up, he dons a black robe, a pointy hat, drops a bunch of stuff into a bubbling cauldron and just predicts? Yeah, we do too. What a life, right?

His latest portent involves Respawn Entertainment, the new shop of former Infinity Ward-ers Jason West and Vince Zampella, and it goes a little something like this: the Call of Duty franchise will see lowered sales, thanks to more competition in what we like to call 'the near-superhuman military dudes blowing junk up' market.

"I think that it is likely that future games will sell fewer units in the past, primarily due to increased competition from Respawn, DICE and EA games that will likely be in the same or similar genres," Pachter said. He also anticipates that many gamers will recognize that West and Zampella are off the franchise, but that "the majority of consumers will either not know or will not care enough to shun future games." The lack of Infinity Ward's branding certainly didn't stop World at War from moving a bajillion units.

Pachter: EA, DICE and Respawn will impact future Call of Duty sales originally appeared on Joystiq on Thu, 22 Apr 2010 21:15:00 EST. Please see our terms for use of feeds.

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Report: EA planning premium, pre-launch DLC for retail games at $10 - $15 [Update: EA explains]

Ben Gilbert — Mon, 22 Mar 2010 15:30:00 EST

During a recent visit to EA's offices, Wedbush Securities' Michael Pachter (and other analysts) got what he calls a "candid" view of the future for the publisher. Among the many glowing things that Mr. Pachter had to say in the report from the meeting, he reveals that EA group general manager Nick Earl told him EA has plans "to release premium downloadable content (PDLC) as a product for sale prior to the release of a packaged product."

Comparing the PDLC to Battlefield 1943 -- a game for which we unfortunately have yet to see any post-release support from EA -- Earl revealed that the content will be priced at between $10 to $15 through Xbox Live Arcade and PlayStation Network, and will arrive prior to a "full-blown packaged game." That "full-blown packaged game" will of course still carry a "full retail price" when it does arrive in stores. Pachter expanded to Gamasutra, "I think that the plan is to release PDLC at $15 that has 3 - 4 hours of gameplay, so [it has] a very high perceived value, then [EA will] take the feedback from the community (press and players) to tweak the follow-on full game that will be released at a normal packaged price point."

This is just one part of the digital effort EA is gearing up for in the coming year, according to the report, which details an expected "1/3 [growth] of revenues over the next few years" in the digital market. Between this and 'Project Ten Dollar,' EA's certainly taking an aggressive approach to new monetization routes on the digital frontier. It remains to be seen how it'll all pan out, but for now things are at least staying interesting.

Update: EA's Jeff Brown explained the PDLC concept to us in more detail this afternoon, saying:

"EA is working on a number of projects for delivering premium content to consumers before, during, and after the launch of a packaged-goods version of the game. EA SPORTS, EA Games and EA Play are each experimenting with download strategies that deliver fresh game content in formats players want to experience. To date, there is no set pricing strategy for the entire EA portfolio. And many of the proposals include free-to-play content on models similar to Madden Ultimate Team, Battlefield Heroes and Battlefield 1943. None of the proposals call for charging consumers for traditionally free game demos."

Report: EA planning premium, pre-launch DLC for retail games at $10 - $15 [Update: EA explains] originally appeared on Joystiq on Mon, 22 Mar 2010 15:30:00 EST. Please see our terms for use of feeds.

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Analysts: No cause for concern over reported unpaid Modern Warfare 2 bonuses

Alexander Sliwinski — Tue, 02 Mar 2010 15:30:00 EST

Following the departures of two Infinity Ward executives, a related story has gained significant traction and deserves some attention. BingeGamer reports that the development studio "has yet to be paid a single dime in royalties for Modern Warfare 2," ostensibly to be paid by publisher Activision. As Infinity Ward is a wholly-owned Activision studio, we turned to some leading industry analysts to explain what appears to be a private contractual matter.

EEDAR analyst Jesse Divnich tells Joystiq, "I couldn't speak to what the royalty agreement between Activision and Infinity Ward is. If royalties haven't been paid out yet, I wouldn't consider that too alarming. The game has only been out for a little over 90 days. Additionally, it is common to see royalty agreements based upon factors such as hitting release date, review scores (a.k.a. 'Metacritic Clauses') or revenue milestones. I think if you just replace the word 'royalties' with 'bonus' it should make some more sense."

Wedbush Morgan's Michael Pachter explains, "I don't know the nature of [Infinity Ward's] contract, but my bonus is paid after year-end (in February), and theirs is likely the same. The idea that they haven't been paid 'yet' is not all that surprising. The year just closed, and the final SEC documents were filed yesterday." He continues, "IW sold itself to Activision back in 2004, Activision owns the [Call of Duty] IP, and the guys leaving were employees under some kind of contract. Activision appears to believe that they have breached this contract, and may or may not be justified in withholding bonuses."

Check out Pachter and Divnich's full analyses after the break.

[Editor's note: This post has been altered to reflect updates in the Infinity Ward leadership shakeup.]

Continue reading Analysts: No cause for concern over reported unpaid Modern Warfare 2 bonuses

Analysts: No cause for concern over reported unpaid Modern Warfare 2 bonuses originally appeared on Joystiq on Tue, 02 Mar 2010 15:30:00 EST. Please see our terms for use of feeds.

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GameStop reveals 2010 capital allocation program

Ben Gilbert — Tue, 12 Jan 2010 18:30:00 EST

We know, we know -- you've been sitting around all day worried sick about GameStop. Ever since the recent announcement of a cut profit forecast and the resultant drop in share prices, we've been in exactly the same boat. Good thing then that the company has announced plans to repurchase $300 million in stock from investors as part of its 2010 "Capital Allocation Strategy," with intentions to increase earnings per share by 10 percent.

Wedbush Morgan analyst Michael Pachter sees the announcement as "positive," echoing the company's statement of continued financial growth in 2010. "We believe that industry sales will rebound in 2010 and that GameStop is well-positioned to gain share the first half of the year. The company has high exposure to the hardcore software releases, which we expect to drive market growth in 2010, and comparatively low exposure to hardware, which we expect to decline," he says. It certainly doesn't hurt that GameStop plans to open 400 new stores over the course of the year -- the financials even leave $100 million on the side, reserved for "acquisition activity." It would appear that, at least for now, we can all can stop worrying. Finally.

GameStop reveals 2010 capital allocation program originally appeared on Joystiq on Tue, 12 Jan 2010 18:30:00 EST. Please see our terms for use of feeds.

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Sources: Red Dead Redemption development in trouble [update]

Ben Gilbert — Tue, 12 Jan 2010 16:00:00 EST

When we recently spoke with our trusted sources from Rockstar San Diego, in addition to yesterday's information regarding the Midnight Club franchise, we were also told about the allegedly troubled state of Red Dead Redemption. One source said that the game "was a complete disaster for most of 2009 and previous ... it has since turned around a little bit, but there are huge problems with it still." Unsurprisingly, the issues with the game are repeatedly claimed to be the result of mismanagement -- along the same lines as what was mentioned in the recent "Rockstar spouse" letter.

"Red Dead [Redemption] has been in production for six years (mainly because of horrible management/lack of direction due to fear of disrespecting Rockstar NY) and it will never get the money back in sales it cost to create for those six years," claimed another source.

We asked Wedbush Morgan's Michael Pachter to estimate how many copies he thinks Red Dead Redemption needs to sell to make back its development costs and, more importantly for Take-Two, to be profitable. "I'd say realistically, if everybody [at Rockstar San Diego] was working on it this whole time -- so let's assume it's four years to be fair [Red Dead Revolver was released in March 2004], that's $40 million (about $10 million a year to run the studio) -- to make that back and just break even you need at least $80 million in sales; 1.75 million units. For profit: $160 million/3.5 million units."

Pachter added that "it's got a shot" and that, from what he's seen of the game, "it looks phenomenal." Our sources are less hopeful, unfortunately: "The functional team that was Midnight Club was shattered. All the people who didn't quit or get fired were thrown onto Red Dead Redemption, many of them being demoted. The completely disfunctional team that is RDR was put to top priority. The people who had floundered on that project or outright screwed it up were promoted and are now in complete control of the studio, and they're running it into the ground." We'll have to see when the game arrives in stores this April -- if it does.

We contacted Rockstar for comment on this story and have yet to hear back as of publishing.

Update: We were contacted regarding this story by one Rockstar source, who told us: "It will take ~~5 million~~ 4 million sales at full price to recoup the development costs of Red Dead. The good news is they [Rockstar] are not expecting to make money with Red Dead Redemption. At this point, that project is just supposed to prove that the San Diego studio can make a great quality AAA title." If you'd like to contact us regarding this or other stories surrounding the "Rockstar spouse" letter, we'd love to hear from you.

Sources: Red Dead Redemption development in trouble [update] originally appeared on Joystiq on Tue, 12 Jan 2010 16:00:00 EST. Please see our terms for use of feeds.

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GameStop shares drop 15% following holiday sales info release

Ben Gilbert — Fri, 08 Jan 2010 14:30:00 EST

Following yesterday's lowered profit forecast announcement from GameStop, the company's stock took a 15 percent dive as of last night. According to GamesInudstry.biz, stocks opened yesterday "sharply down" due to the release of lowered profit expectations, but rose again before ending the day at $20.46.

We might not know what the future holds for GameStop, but Wedbush Morgan analyst Michael Pachter returned from the future for just long enough to say he believes "industry sales will rebound in 2010 and that GameStop is well-positioned to gain share [over] the first half of the year." It certainly doesn't hurt the retailer that 2010 is chock full of delayed 2009 releases, we imagine.

GameStop shares drop 15% following holiday sales info release originally appeared on Joystiq on Fri, 08 Jan 2010 14:30:00 EST. Please see our terms for use of feeds.

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Current console adoption rate only now passing last cycle's, Pachter reports

James Ransom-Wiley — Wed, 01 Jul 2009 06:00:00 EST

Among the many fascinating (and not so fascinating) takeaways from Wedbush Morgan analyst Michael Pachter's recent and massive industry report are revelations about the current console adoption rate. As much as the Wii has seemingly penetrated previously untapped demographics (see grandma's now defunct bridge club) and ostensibly raised console adoption rates to new highs, the current generation is practically dead even with the last one when comparing the two generation's first four calendar years on the market. That is, from 2005 (when Xbox 360 launched in late November) through 2008, the current generation of consoles (Wii, PS3 and 360) combined for approximately 78 million unit sales, according to Wedbush Morgan estimates. Comparatively, from 2000 (the year PS2 launched) through 2003, the previous generation (GameCube, PS2 and Xbox) combined for 78-79 million unit sales. However, in this pivotal fifth year, Wedbush Morgan predicts the current adoption rate will begin to pull ahead of the previous rate.

Continue reading Current console adoption rate only now passing last cycle's, Pachter reports

Current console adoption rate only now passing last cycle's, Pachter reports originally appeared on Joystiq on Wed, 01 Jul 2009 06:00:00 EST. Please see our terms for use of feeds.

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Pachter: Nintendo is benefiting from global recession side effects

Ben Gilbert — Wed, 01 Jul 2009 04:00:00 EST

Normally when Wedbush Morgan analyst Michael Pachter whips out his crystal ball and starts getting the vapors, he doesn't have time to turn on his minirecorder and take down the futurespeak channeled through his body. Luckily for us (and you!), he not only recorded it this time, but also wrote it down in the form of the 2009 Interactive Industry Report! We delved through the beast of a document this afternoon and found an interesting segment regarding the Nintendo Wii relying on "slower adoption rates of current generation technology" (read as: high-def displays) to help boost sales.

Pachter writes on page nine of the report, "The global recession served to benefit Nintendo at its competitors' expense," referencing Microsoft and Sony as having slower console sales this generation due to HDTV functionality built into the systems. He argues that consumers who might purchase the Xbox 360 or PlayStation 3 are more likely to buy the Wii not only because of the lower price point, but because of the subsequent HDTV purchase price. "Expect most consumers to defer purchasing a PS3 or an Xbox 360 until they have purchased an HD monitor," Pachter explains. Though we're not convinced that the same folks who would be purchasing an Xbox 360 or a PS3 would be running out to buy a Nintendo Wii in every case, we digress. What say you, Joystiq Biomass?

Pachter: Nintendo is benefiting from global recession side effects originally appeared on Joystiq on Wed, 01 Jul 2009 04:00:00 EST. Please see our terms for use of feeds.

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Pachter: PlayStation software sales will account for 31% of all games sold worldwide in 2009

Majed Athab — Wed, 01 Jul 2009 01:30:00 EST

Although Wedbush Morgan analyst, Michael Pachter, predicts PS2 will become somewhat irrelevant in 2009, he doesn't discount the combined strength of the PlayStation brand. He remains optimistic for the entire PlayStation family as he expects "software sales for Sony consoles to account for 31% of all game software sold worldwide."

Pachter indicated in Wedbush's annual Interactive Industry Report that, while the numbers have been dwindling for PS2, overall worldwide software sales for PS3 titles have more than doubled within the last year. In 2008, 62.4 million units of PS3 software titles have been sold -- a huge step up from the 29.6 million units sold in 2007. The momentum of this growth will carry into 2009, according to Pachter, who believes PS3 and PSP titles (the latter of which only saw a 15% increase in worldwide sales last year) will pick up PS2's slack.

PS3 titles will be the top sellers, despite the fact that Pachter predicts Sony won't "secure significant third party exclusivity" as it continues "to focus its internal development efforts on blockbuster games." It's interesting to note, in light of another report, this strategy hasn't really worked out for Sony.

Pachter: PlayStation software sales will account for 31% of all games sold worldwide in 2009 originally appeared on Joystiq on Wed, 01 Jul 2009 01:30:00 EST. Please see our terms for use of feeds.

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Pachter: Mobile games are a fad, EA's emphasis on sector 'misplaced'

Xav de Matos — Tue, 30 Jun 2009 23:00:00 EST

Some people in the video game industry predict the mobile games business could eventually grow to topple the handheld gaming market, Wedbush Morgan disagrees. In its July industry report, analyst Michael Pachter estimates the mobile games industry is currently closer to $2 billion and, even with expected growth, the market may only expand to $4-6 billion in the next three to five years.

In a section titled "Mobile Phone Games are a Fad," Pachter explains that, while 1 billion iPhone applications have been downloaded across 31 million Apple products sold, "it is not evident that more than 20% of these downloads are games." Suggesting the iTunes App Store has generated "under $400 million in game downloads" in its first year. Pachter does predict the mobile game industry will grow at 25% per year for a few years, but will eventually fall as competing devices enter the market.

The report also calls Electronic Arts' emphasis on mobile games "misplaced." EA Mobile has grown steadily over the last few years, but the report estimates the mobile games division is -- along with that of competitors Gameloft and GLU Mobile -- "barely profitable."

According to the report, finger pointing in Apple's camp should directed toward the "open forum" structure of the store and Apple's business model. Apple runs the game download service for an estimated 30% fee, leaving 70% to the game's publisher, the report claims. The section on mobile games goes on to conclude that handheld systems, like the new PSP Go, will "maintain its niche, without significant cannibalization" from the mobile games industry.

Pachter: Mobile games are a fad, EA's emphasis on sector 'misplaced' originally appeared on Joystiq on Tue, 30 Jun 2009 23:00:00 EST. Please see our terms for use of feeds.

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Top brands of 2008 owned by Nintendo, EA, Activision, and not Sony

JC Fletcher — Tue, 30 Jun 2009 21:00:00 EST

Wedbush Morgan Securities' 2009 industry report includes a list of the top thirty brands of 2008. The report notes that of the companies whose brands appear on the list, Nintendo, EA, and Activision were the only three with more than one brand to generate over $100 million at retail in the US last year.

And boy, did they. The top brand of the year, Guitar Hero -- perhaps you've heard of it -- was responsible for $992 million in US sales in 2008. The next two brands, Mario Bros. and Rock Band, generated $761 million and $662 million, respectively.

One company is notably absent from the top brands list: "Most strikingly," the report reads, "Sony had no top 30 brands for the third year in a row." Microsoft had two brands on the list (Gears of War and Fable) and Nintendo had four (Mario Bros., Wii Fit, Wii Play, and Pokémon). See the list of brands after the break.

Continue reading Top brands of 2008 owned by Nintendo, EA, Activision, and not Sony

Top brands of 2008 owned by Nintendo, EA, Activision, and not Sony originally appeared on Joystiq on Tue, 30 Jun 2009 21:00:00 EST. Please see our terms for use of feeds.

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Pachter: Crysis via OnLive like 'playing on a fully-optimized gaming PC'

Richard Mitchell — Tue, 30 Jun 2009 20:00:00 EST

No, it's okay. You can read that again. According to a report released by Wedbush Morgan's Michael Pachter, the company was given a demo of streaming game service OnLive this past March. Pachter states that latency between the user and OnLive's servers is supposed to be no more than 80 milliseconds, while the games he demoed were running at 25 milliseconds. While Pachter isn't certain if OnLive will "dominate any time soon" he believes that the micro console's video conferencing feature "will likely attract widespread demand." (Wait, it plays Crysis like a gaming PC and it's video conferencing that will sell this thing?)

Pachter states that OnLive should appeal to families that have yet to buy into the current generation of consoles, especially if the service is priced right. The sweet spot, apparently, is right around $5 a month. A higher price could be met with "consumer resistance," says Pachter. Furthermore, Pachter is already predicting that OnLive may not last long as a standalone service, suggesting that it might be purchased by another company and offered as "part of an expanded service offering."

For example, Microsoft could purchase the company to further expand the Xbox as an entertainment hub -- Pachter notes Microsoft's previous acquisition of WebTV, which was co-founded by OnLive CEO Steve Perlman. That's assuming neither Apple nor Verizon beat Microsoft to the punch, of course.

It's too early for us to say if any of this will come to pass -- we're not analysts, after all -- but we were certainly impressed with our own OnLive experience. Still, until we can plug OnLive into our internet and play Crysis for ourselves, we're a bit skeptical. That's okay though, because we're supposed to be.

Pachter: Crysis via OnLive like 'playing on a fully-optimized gaming PC' originally appeared on Joystiq on Tue, 30 Jun 2009 20:00:00 EST. Please see our terms for use of feeds.

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Pachter says Sony is 'ripping off' consumers with PSP Go

Ben Gilbert — Tue, 09 Jun 2009 18:55:00 EST

Wedbush Morgan analyst Michael Pachter hates the PSP Go. Alright, alright, he doesn't quite hate it, but he does despise its price point. On a recent episode of Bonus Round, Pachter matter of factly states, "$249 is too much. Period." He goes on to say that while the handheld is priced to compete with Apple's $229 8GB iPod Touch, it doesn't deliver the iTunes App Store or downloadable music from iTunes (as conveniently, at least, as the iPod Touch).

Furthermore, he posits the $250 price of the PSP Go is vastly overinflated considering its contents, claiming it costs Sony less to build and ship the PSP Go than the PSP-3000 model, "The $169 PSP-3000 is a profitable device -- the disc assembly, for a UMD, costs more than 16 gigs of flash does. So this new device doesn't cost them as much as the PSP-3000 and they jack the price up $80?" When Keighley presses Pachter as to whether Sony is "ripping off" the consumer or not, he answers, "They're rippin' off the consumer ... they're making a lot more money on the PSP Go than the PSP-3000."

Gallery: PSP Go

Pachter says Sony is 'ripping off' consumers with PSP Go originally appeared on Joystiq on Tue, 09 Jun 2009 18:55:00 EST. Please see our terms for use of feeds.

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THQ's Farrell says company is aiming for core foothold

Xav de Matos — Wed, 11 Mar 2009 18:15:00 EST

THQ CEO Brian Farrell believes his company can still gain footing in the core gaming market, focusing on a quality level that "resonates with the consumers and the press." Speaking at the Wedbush Morgan Securities annual conference, attended by Gamasutra, Farrell maintains THQ has continued to strike a chord with the core audience. Saint's Row 2 -- a game Farrell described as "the number-two open-world game in the category" behind Rockstar's GTA -- has "done 2.6 million units life to date." Whether "done" means sold or shipped, is unclear.

Farrell also told the audience the Warhammer 40K franchise is one "we should start talking about more." Citing upwards of 4 million units for the original Dawn of War RTS, through initial release to expansion and gold edition. In its first week, Dawn of War 2 jumped to the top of the PC sales charts.

Farrell could be accused of shining as might positive light on the current poor situation his company is in. Analysts have predicted the publisher has a 50% chance of bankruptcy since THQ reported a net loss of $191.8 million for the three months ending December 31, 2008, and a loss of 24 percent of its workforce. As for Farrell's comments, it could be said that achieving a quality bar may be difficult when the company has recently decided to axe a large portion of Quality Assurance employees from Volition, the team behind Saint's Row 2. In the streets, we call that irony.

THQ's Farrell says company is aiming for core foothold originally appeared on Joystiq on Wed, 11 Mar 2009 18:15:00 EST. Please see our terms for use of feeds.

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Pachter: Nintendo is like McDonald's

David Hinkle — Tue, 10 Mar 2009 21:50:00 EST

The man with his own Joystiq tag, Michael Pachter, is at it again, this time talking about Nintendo and the Wii. In likening Nintendo's success with the Wii to that of McDonald's success in slowly killing you, Pachter says a lot of what worked for the food chain is working for Nintendo right now. Does that make Mario a Big Mac?

"They buy the Wii games that they buy for the same reason that people go to McDonald's," Pachter said on consumers. Further elaborating on his comparison of the two companies, he said, "McDonald's doesn't win a lot of restaurant critic awards but they are approachable, they're consistent, and you know what they're going to serve you." He says that if the "concept is right," the "recognition factor" is there, and if "you can 'get it' from what's on the box," then "sometimes the game doesn't even have to be that good in order for it to sell."

He must have skipped lunch today, because Pachter also brought Nintendo's competition into the food comparison mix, saying, "Nintendo has become the fast food machine. Sony is very much the high-end restaurant. And Microsoft is somewhere in between."

So, basically, the Wii is like a #4 on the value menu, the Xbox 360 is like lunch at Applebee's, and the PS3 is like getting a reservation at Dorcia on a Friday night. Got it.

Pachter: Nintendo is like McDonald's originally appeared on Joystiq on Tue, 10 Mar 2009 21:50:00 EST. Please see our terms for use of feeds.

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Pachter: Riccitiello is the right man to save EA

David Hinkle — Wed, 04 Feb 2009 14:45:00 EST

With all of the bombshells EA dropped last night, some might be questioning whether John Riccitiello is the right man to guide EA into a profitable future. Video game analyst Michael Pachter isn't one of those, however. Pachter thinks that's the kind of person that needs to be in charge at EA and describes Riccitiello as "a bright guy with a ton of experience" and being "sufficiently conscientious to lead the company."

It wasn't all sunshine and lollipops from Pachter's end, however, as he criticizes Riccitiello's past strategies for EA and his "desire to balance between future growth and current success." The past strategies Pachter refers to are likely the company's gamble on new IPs, Mirror's Edge and Dead Space. As for us, we like the more gutsy EA. But we also want Mass Effect 2 ...

Pachter: Riccitiello is the right man to save EA originally appeared on Joystiq on Wed, 04 Feb 2009 14:45:00 EST. Please see our terms for use of feeds.

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Pachter predicts PS3 price drop to $299 in April

Andrew Yoon — Mon, 12 Jan 2009 18:30:00 EST

Filed under: Business

We were so hopeful that PS3 would get a price drop this year. But no. Michael Pachter, analyst at Wedbush Morgan, had to "predict" a PS3 drop in April. Drats, we were looking forward to this one too. Unfortunately, with Pachter's track record, it's pretty good to bet that he'll be wrong.

"Once the PS3 is at a more affordable price point (we expect a cut to $299 in April), we think that sales of that device will once again begin to grow," he states. However, don't expect Microsoft to take that sitting down. "We expect another cut in price for the Xbox 360, with the feature-laden Pro model likely to come down in price to $249 at or before this year's E3 show in June." Nintendo, however, has no reason to lower its price and will unlikely drop the price of the bestselling Wii.

Pachter is right once in a while, so we're optimistic that a price drop will happen. Perhaps it won't be as significant as $100 off, or perhaps it won't happen in April. It'll be interesting to see what Sony chooses in '09: their bottom line, or making a more aggressive attack in the console wars.

Pachter predicts PS3 price drop to $299 in April originally appeared on Joystiq on Mon, 12 Jan 2009 18:30:00 EST. Please see our terms for use of feeds.

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Pachter talks Wii supply, forecasts August earnings

David Hinkle — Tue, 09 Sep 2008 18:12:00 EST

Filed under: News

We all know Michael Pachter has no problem tossing his two pennies around, and his estimations for the month of August might surprise some of you. When it comes to sales, the Wedbush Morgan analyst sees Nintendo making around $100 million on software. As for hardware, it's a different story, as a decline is expected.

"Because the U.S. has received only around 1/3 of total Wii production to-date, instead of a more normal 40 percent, there has been a severe shortage of Wii supply here that has yet to let up," says Pachter. He thinks that the supposed production increase won't take effect in North America until September.

See also: GameStop CEO sees no 'end in sight' for Wii shortages

Pachter talks Wii supply, forecasts August earnings originally appeared on Joystiq on Tue, 09 Sep 2008 18:12:00 EST. Please see our terms for use of feeds.

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Pachter raises year-end software sales expectation

Alexander Sliwinski — Tue, 02 Sep 2008 21:00:00 EST

Filed under: Business

Michael Pachter, analyst extraordinaire at Wedbush Morgan, recently shaved his Predict-o-Matic Monkey(R) as punishment for inaccurately guessing the industry's software sales growth this year. Turns out that instead of a mere 19% jump in US sales for 2008, the monkey's dart should have hit the index card marked with "32%" against the wall.

Pachter also tweaked his numbers for Europe, increasing the expectation from 20% to 40% growth. Wedbush Morgan now has a combined expectation of software sales growth in Europe and the US of 36% over 2007's record-breaking figures. Pachter is currently reviewing Predict-o-Matic's return policy.

Pachter raises year-end software sales expectation originally appeared on Joystiq on Tue, 02 Sep 2008 21:00:00 EST. Please see our terms for use of feeds.

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Pachter: Nintendo financial earnings greater than expected

David Hinkle — Mon, 28 Jul 2008 21:00:00 EST

Filed under: Interviews

Michael Pachter is of the mind that Nintendo made a whole ton of money during the second quarter. Nintendo is supposed to release figures on the 30th, but that hasn't stopped Pachter and Wedbush Morgan from coming up with some figures of their own. Pachter says the company will report earnings of ¥421 billion ($3.91 billion) and raise their yearly estimate to ¥1,907 billion ($17.7 billion).

"Nintendo's recent financial performance has been spectacular and we expect this to continue in FY:09," Pachter commented, going on further to state that "Nintendo's Wii and DS appear to be selling even better in FY:09 than in FY:08, and we believe the momentum will last through the end of FY:09." This is likely due to some smart advertising campaigns, which had female celebs showing off how awesome the handheld is. Plus, you know, the handheld has tons of amazing games.

Pachter: Nintendo financial earnings greater than expected originally appeared on Joystiq on Mon, 28 Jul 2008 21:00:00 EST. Please see our terms for use of feeds.

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Pachter expects 2008 to be 'significantly better' for Midway

Jason Dobson — Tue, 06 May 2008 10:25:00 EST

Filed under: Business

In the wake of yesterday's Q1 earnings announcement from Midway, financial prognosticator Michael Pachter has come forth with his predictions for the company, stating that despite suffering considerable losses during the quarter, the analyst expects the company to perform "significantly better" over the course of year compared to 2007.

According to Pachter, his firm, Wedbush Morgan, continues to advise investors to hold onto any shares of Midway stock that they may have collecting dust in their portfolios, adding belief that Midway "can generate sustainable profits if it can deliver revenues above the $300 million annual level." While possible, Pachter himself lowered his 2008 revenue estimates for the company to $265 million from $300 million based on what he called Midway's "weak first half results," as well as lowered his expectations for 2009. The analyst noted belief that Midway hit rock bottom "quite a while ago," and thus it seems like there is nowhere to go but up. We're just not sure that you can get to the top by clinging to Batman's cape.

[Via press release]

Pachter expects 2008 to be 'significantly better' for Midway originally appeared on Joystiq on Tue, 06 May 2008 10:25:00 EST. Please see our terms for use of feeds.

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Pachter foresees Wii coup in 2008

Candace Savino — Fri, 18 Jan 2008 19:00:00 EST

Filed under: News

2007 was the year of the Wii. So, which console's cuisine will reign supreme in 2008? According to super-analyst Michael Pachter, that would be the PS3.

In the latest issue of EGM, Pachter predicts that the Wii will fall to the PS3 this year. The thing that will bring about this fall is not software (well, that too), but price. That's right, Pachter predicts that the price will soon be right for the PS3. The Wedbush Morgan analyst stated, "I think the Wii momentum will last until the Playstation 3 is under $300, so another year."

Perhaps Pachter is making too many assumptions: Will the PS3 drop to under $300? And if so, does that necessarily mean that Nintendo won't cut the price of the Wii to compete? If Nintendo doesn't price drop, will people even care (check eBay, for example)?

Of course, it's his job to make assumptions, so we suppose we can't fault him for that.

[Via NeoGAF]

Pachter foresees Wii coup in 2008 originally appeared on Joystiq on Fri, 18 Jan 2008 19:00:00 EST. Please see our terms for use of feeds.

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Pachter insists Mass Effect coming to PS3

Ross Miller — Tue, 18 Dec 2007 19:45:00 EST

Filed under: Sony PlayStation 3, Microsoft Xbox 360, RPGs, Business

Wedbush Morgan analyst Michael Pachter is all but certain the Mass Effect trilogy is going multiplatform. In the latest episode of GameTrailers' Bonus Round (start about three-fourths of the way into the video), Pachter notes that, given the financial expectations Electronic Arts has with its recently-acquired developer, Mass Effect 2 "has to, has to" come to the PlayStation 3 in addition to the Xbox 360.

More interesting is what Pachter says after his ME2 assertion. "I wouldn't be shocked if Mass Effect One came to the PS3," he said. We aren't sure the exact details of EA's acquisition, but we do know the original Mass Effect was published by Microsoft Games Studio, leading us to assume it was a safely exclusive title. Could EA port and publish the game on Sony's console? We doubt Microsoft would be willing to let that platinum-selling title go without a fight.

Pachter insists Mass Effect coming to PS3 originally appeared on Joystiq on Tue, 18 Dec 2007 19:45:00 EST. Please see our terms for use of feeds.

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Want a Wii? Wait until April.

Candace Savino — Tue, 04 Dec 2007 18:00:00 EST

Filed under: News

It's been more then a year since launch, and demand is still heavily outweighing supply for the Wii. According to Wedbush Morgan analyst Michael Pachter, the two won't manage find balance in the U.S. until April. That means that people won't be able to walk into a store and find a healthy supply of Wiis for another four months. Pachter also estimates that the Wii will sell 1.7 million units this December, beating out the Xbox 360 and PS3 despite its limited supply.

Need we really bring up the printing money meme again?

Want a Wii? Wait until April. originally appeared on Joystiq on Tue, 04 Dec 2007 18:00:00 EST. Please see our terms for use of feeds.

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Wedbush Morgan predicts Wii launch lineup and sales

David Hinkle — Tue, 10 Oct 2006 15:50:00 EST

Filed under: Rumors

Wedbush Morgan recently released its list of anticipated launch titles and sales figures for both the PS3 and Wii. The sales figures they present are very selective and they do not predict figures for every title, but we take what we can get. Their entire proposed lineup and sales figures, which we must say is not a confirmed list by Nintendo in any shape or form, is included after the break.

Continue reading Wedbush Morgan predicts Wii launch lineup and sales

Wedbush Morgan predicts Wii launch lineup and sales originally appeared on Joystiq on Tue, 10 Oct 2006 15:50:00 EST. Please see our terms for use of feeds.

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