Pachter Says ‘The Only Thing That Will Get Wii U Moving Is A Price Cut’

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Famed Wedbush Morgan analyst Michael Pachter has commented on Nintendo’s third quarter financial results and says that Nintendo cutting the Wii U forecast is further evidence that Wii U doesn’t capture the imagination of the Wii. Pachter went on to say that the only thing that will get the Wii U moving off store shelves is a much needed price cut. Here’s what he had to say.

“I always thought Nintendo’s Wii U software forecast made no sense.”

“They initially guided 24 million, are taking that down to 16 million, which is a 4:1 software attach rate. That’s reasonable, especially given that the installed base is 3 million hardware units now and the guidance implies they need to ship only 4.31 million more software units.”

“The hardware guidance is disappointing, and there isn’t really anything that will get hardware moving other than a price cut. I think they got it wrong with this console, it just doesn’t capture the imagination the way that the Wii did.”

“The Wii U is not going to be very competitive if Sony and Microsoft launch comparable consoles at comparable prices. The early weakness will cause many third party publishers to re-think support for the Wii U, and we might not see much support at holiday 2013.”

93 thoughts on “Pachter Says ‘The Only Thing That Will Get Wii U Moving Is A Price Cut’”

  1. No, games will get the system moving.

    Everyone going on about price cuts for the WiiU are in for a big shock when the other 2 consoles arrive. Either that or they’ll magically drop the bias act.

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      1. Has a comsumer a price drop will be heaven but has a rational person Nintendo needs that money to invest in more games does patcher knows companies need money to make games?

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      2. Agreed. There’s a lot coming to the Wii U in the coming months–Rayman: Legends, Lego City: Undercover, Game and Wario, Aliens: Colonial Marines, Wonderful 101, Pikmin 3, Mario Kart, 3D Mario, Wind Waker HD, Smash Bros. 4, not to mention what we’ll find out about in the Nintendo direct on 3rd party games and E3. The Wii U is just in a lull right now after a decent launch. Things will pick up, and it’s not like the next PlayStation or Xbox will be any cheaper.

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    1. Once the new new Mario game and Mario Kart, The new Monolith Soft game, TLoZ WW HD and the completely new Zelda, Smash Bros, Pikmin 3, LEGO City Undercover, Yarn Yoshi, Game & Wario + more that isn’t even announced yet will get the system moving just fine.

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  2. Don’t count on it Pachter. The Nintendo Direct I saw a couple of days ago says otherwise. Once we get more exclusives the system will sell. Sure a price drop will happen in a couple of years and the system will sell more with a price drop but I don’t expect it to happen in 2013. Btw can I have your job since you get paid to make retarted assumptions?

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    1. I don’t know… I think the announced games are great, but Pachter is right. Remember the 3DS? Everyone knew what it was when it came out (Glasses free 3D!), yet it struggled till the price came down $70. Great games came along soon after, but an early price drop helped the system secure a solid first place as the Vita was debuting. Just because we’re fanboys doesn’t mean we should ignore the obvious: A timely price cut + great games = more systems and games sold, Period.

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      1. The 3DS had Steel Diver, Pilot Wings, and then… nothing new… forever. The games weren’t there to drive sales. The price drop came at around the same time as games like Ocarina of Time, Star Fox 64, and Mario Kart 7. Also, the 3DS was overpriced at launch. Unlike the 3DS’s launch price point, the Wii U is already being sold at a loss, and I believe that’s a first for Nintendo.

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      2. Patcher’s only half right.
        His quote is that that would be the ONLY thing that would get the Wii U to sell.
        He’s conveniently ignoring the latest Nintendo Direct on top of the fact that the Wii U is now gaining profit instead of selling at a loss.

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  3. The PS3 was $600 at launch. The Wii U is $300. PS4 will no doubt be more than $600 at launch, so will the new X-Box, so why does the Wii U need a price cut if it’s going to be the cheaper one?

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    1. By all means, let Sony release this “PS4″ at the price of $600
      Not many people will be buying it at that price
      less systems sold = less games sold = failure
      btw blocking used games = quadruple failure

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      1. I remember hearing that the next Xbox will have the same used game block implemented just like the PS4, Once that is shown, the Wii U will start booming more because of the fact that it is far cheaper than the other 2 systems and has shown more innovation.

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        1. No they only took out a patent on it. Just because they patented it, doesn’t mean they’ll use it, heck Nintendo probably has there own version patented amongst the thousands of other patents.

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          1. The thing that makes it so belivable is that rumours have speculated a long time about this subject. I do actually think Sony could sink to this level and I do not really have any higher thoughts about Microsoft eighter. Heck, they do everything to please third party developers.

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    2. ” PS4 will no doubt be more than $600″

      Right, where is your proof? Oh wait! You got none! Sony have said they want to make it more affordable this time round.

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    1. Really pisses me off when you have people saying Wii U is not Next-Gen. Why shouldn’t it? Yet again Nintendo came up with this new idea of a GamePad (Not a tablet -_-) and give us a new way to play a game. Just because it aint going get this amazing graphics a PS4 is going to give us, Does not mean it is not Next-Gen -_-.

      Nintendo will rock as always and Nintendo Direct proved it big time.

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    1. Because idiots keep responding to what he says which gives people massive amounts of attention. The media love Pachter. Is it really that hard to see?

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  4. It wont need a price cut once they release the new xbox and ps4. Consumers will see the price for those and see the wii u as a catch.

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  5. No shit sherlock is comon sence im selling my ass and no bady buys why no bady buys? But if give it for free they will flock in specialy fan boy molester neutron.

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  6. GET IN TO REALITY PEOPLE!!!!!

    The Wii U is competing with the Xbox 360 and the Playstation 3
    The ps4 and 720 are 2 – 3 years away from releasing

    If Nintendo WANTS to compete with the current gen, it needs exciting IP’s exclusive to the Wii U! A new Zelda title “announced thank god” Maybe a new Mickey Mouse game, “Epic Mickey was a Wii exclusive and became a serious system seller for anyone who wanted to play the game.” Or maybe even, “now I know this is a EXTREME longshot” but maybe Nintendo could create a NEW franchise instead of making countless sequels and spinoffs of already established IP!

    LESS MULTIPLATFORM
    MORE EXCLUSIVES

    There’s you a recipe for SUCCESS!

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  7. Really does my nut in how people really diss Wii U and it is same for Wii because it is not a “Next-Gen” console. Amazing graphics should not make it Next-Gen, Nintendo have always done something new to the console for example, they came up with the Wii remote until other consoles tried to copy it. PS Vita is doing crap and everyone loves the fact 3DS was invented and yet again Nintendo did that. Nintendo Direct got me way exicted and it is irritating them you got such negative comments because they do not think it is like PS4 and Xbox 720 so why the hell had Wii done so much better than PS3 and Xbox 360? Douche bag…

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  8. Pachter fails to realize that hardware releases don’t always have steady sales for a while and it hasn’t been that way for at least a few generations, just remember the 360, PS3 and 3DS. all of these had slow sales since launch especially after christmas and especially if there weren’t any killer apps or games at all. There’s only 3 Wii U games coming out in japan in the next 3 months, while EU and NA are seeing one or two big releases like Monster Hunter and Rayman. Once the big games roll out there’s nothing to worry about.
    I doubt nintendo would even go as far as a price cut. It would help, but the system is already selling at a loss. That being said they could benefit from a price drop when the other next gen systems are out, it would be a clever strategy

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  9. No matter what Nintendo do EVER. Pachter will keep moaning. He’s a butthurt Nintendo hater. And can’t accept the fact that the Wiiu and the 3DS will do just fine . Or they will be mega success like WIi and DS.

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  10. Bla bla bla bla bla bla

    When the bombs drop at E3 the Wii U will take off just like the 3DS

    Sony is dead and MS is gonna get crushed

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  11. Absolutely yeah! I’m not buying it until the price drops. They’re seriously asking more than a PS3 for way less of the capability? Are you SURE you’ll trade smaller HD space and an apple touch screen for powerful capability and a nice controller? Sheesh.

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        1. The one of the image is ness, not lucas, and how am i trolling, i dont care what other people say, i will always enjoy any of my nintendos.

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          1. Eh…I think that the Wii U will be good….just not for $300. And how am I trolling? XD I’m a Nintendo fanboy mahself, but I hate when Nintendo pulls a george lucas….

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  12. ‘The only thing that will get Wii U moving is a price cut’

    I don’t know, what about the games? 3D Mario, Mario Kart, Wind Waker Reborn, Pikmin 3, Rayman Legends, Lego City, Bayonetta 2, Wonderful 101, New Zelda, Monster Hunter 3 Ultimate, as well as all the games announced in the latest Nintendo Direct, Retro’s game and Myamoto’s game (assuming those 2 are on wii u), and of course Nintendo has more surprises in store for us (Paper Mario, Metroid or Starfox, Donkey Kong, Kirby, Fire Emblem, revival of old franchises, ZombieU 2?).

    Oops, almost forgot about Super Smash Bros 4.

    If you are referring to the casual audience, Wii Fit U, Wii Party U, and there will probably be more games too (maybe Wii Sports U?).

    ‘It just doesn’t capture the audience the way the Wii did’

    Duh, because the Wii with it’s motion controls was targeted towards family’s and casuals all over the world who bought one just for Wii Sports. A lot of games didn’t even use the motion controls/used it in a gimmicky way, which is why I didn’t really like the Wii.

    Also, after all the innovations Nintendo made, topping it all off with motion controls, what else can they do? I dare you to think of a new innovative idea they could have done besides make it like competing consoles and adding a touch screen. Thought so.

    One last thing, what do you think parents will buy for their kid for Christmas, a $250 Wii U (price cut), or a $400-$500 720/PS4? The Wii U wasn’t made to compete with last generation consoles, it was made to compete with next generation consoles.

    If you want third party games, just get a PC. It will save you a lot of money in the long run. Plus, it has awesome graphics. Or better yet, just go outside. There are your graphics.

    I understand that Nintendo makes mistakes sometimes, but I could sit here all day and argue about all the things they have done right, and the list would be bigger. I just hate it when people criticize Nintendo for not having the best graphics ever, or not having the best online ever. Guess what? Nintendo IS starting to realize that these things are important with the Wii U’s improved graphics and Miiverse/Friend List. Also, does Miiverse cost money? No. It’s free.

    So all you trolls and Nintendo haters that come on this site, just go away. Nobody likes you. You’re not being smart. You’re not being funny. You do not have any valid reasons, you just reply the same things over and over again. You’re just embarrassing yourselves. Ether contribute to the discussion like a nice civilized person or leave. You guys deserve to be banned. Why are you on a Nintendo website anyways? Don’t you have better things to do with you’re lives? Also, cursing way too much in improper context in every single sentence does not make you ‘cool’, despite what your middle school friends might have taught you.

    Thank you and good day.

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    1. It’s just sad when people wish Nintendo would die. They’re just jealous. There are actual people that you want to loose their jobs? That’s just sad.

      With the huge success of Wii and DS, along with the tremendous sales of the 3DS so far, and the fact that the Wii U has sold more than 360/PS3 in the same time period, means that Nintendo’s not going anytime soon.

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  13. How does this man stay employed?? GAMES MOVE SYSTEMS!! Once the games come, it will sell better. Also, Nintendo is still making money. Plus, if you purchased the Black one, your really only paying about $260. How do I figure? Well, you get a game that cost $60, a HDMI cord which is anywhere from $10 on up, plus you get 10% back on all eshop purchases. So in other words, it’s already cheap!!

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  14. 1. Replace “price cut” by “new games” (think Mario, Zelda, Yoshi, X, etc.) 2. Oh it’s Pachter saying that. Then ignore what he says.

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  15. I think a price drop would not be the worst thing….I’d buy one if it were $50+ cheaper. Also better games wouldn’t hurt as many have already said. Unfortunately for Nintendo, most of their big killer games that have been announced wont be released for another 12-18 months. Pikmin might sell a few consoles, but i’d wager that games like Rayman and Lego City, while great games, will do more in the ways of pacifying current wii-u owners rather than enticing new customers.

    The Nintendo Direct revealed a lot of promising material, but many people on here seem to thinking these games will be out soon. Just because there will be a playable demo at E3 does not mean the game will be out soon after. I seem to recall a playable demo of Pikmin 3 at last years E3 and that’s still got over a month until it’s released. I’m not sure Nintendo can hold out until next spring/summer when their heavy hitters will finally be released.

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  16. A price cut AND new games. Even though the Wii U is cheaper than the PS3 and 360 was, it’s still pretty expensive. One reason why I still don’t have one yet. I can’t afford the expensive 60-dollar games either. I’d rather buy a dozen retro SNES games than spend that much money on just one new Wii U game.

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  17. The reason why the Wii flew off shelves at launch was due to the one game that everyone wanted. Wiis launch lineup wasn’t exactly great, but it launched with Zelda. That game was pretty much the reason why so many got the system at launch. Without it, I doubt Wii consoles would’ve been hard to get. You can argue that it was originally a GC game, but in the end it doesn’t matter. It sold the Wiis launch because it came to Wii first, and gamers knew it would be the better version, so they weren’t going to wait for the GC version if it was already out. Zelda sold the Wiis launch, period.

    Which brings us to Wii U, which, despite not being launched with a huge first party seller, has beaten the Wiis first two months, which launched with a Zelda game. This alone brings me to the conclusion that Patcher is wrong. The 3DS needed a price cut because it was overpriced, and had a small game library at best, which is why it wasn’t selling. Wii U, however, is fairly priced given what you get in the box, and already has a decent game library, with 3 console pushers set for March. So no, Wii U does not need a price cut. Granted it would help, but it’s not necessary. On the contrary, it’s simply down to more killer apps. There are millions out there who want a Wii U, but are waiting for games like Pikmin, Monster Hunter, Rayman, and Smash Bros, three of which launch in March.

    Wii U is already doing pretty well. Not spectacular, but it’s by no means selling poorly. However, what will keep systems moving isn’t a price cut, it’s games. A console is a tool needed for games, that’s all it is, nothing more, nothing less. What consumers care about are games, not hardware. And consumers have expressed that $300 is a reasonable investment, they simply want more than just a couple of average games before buying making the investment, and Nintendos Direct shows they are prepared to deliver. So no Patcher. It doesn’t need a price cut. Our economy might be in the toilet, but people are not without cash. $300 is very reasonable for a brand new console, in fact taking inflation into consideration, that’s actually a more reasonable price than how much the Genesis was selling for.

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  18. It all comes down to games. But price is important. If Nintendo dropped the price by $50, it become a more attractive purchase. Quite frankly, Nintendo should focus on games and third party support.

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  19. Is he the ONLY industry analyst commenting on the big N? He seems to pop up in the news here daily. He’s wrong about the price drop, but a few more first-party franchise titles would have helped the launch a TON, especially if the Mario release had been a new 3D title and not another rehashed title in the ‘NEW’ Super Mario Bros. series.

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  20. a price cut isnt need especially when if u look for long enough its cheaper brand new on ebay etc , i paid £235 for a brand new premium wii u , it just needs games

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  21. I pity the fools who paid even MORE just to get a Wii U on eBay. What idiot would buy those over-priced consoles from greedy eBay sellers instead of just waiting for stores to get more in stock? I’ve been more patient with the Wii U than any other console. I’m waiting for the right time to buy one. Like, when Pikmin 3 comes out. You would have never seen me waiting when the Nintendo 64 and Gamecube was released. I was obsessed with those consoles and HAD to get them on launch. The Gamecube is still my favorite of the non-cartridge Nintendo consoles. I can’t believe it didn’t sell better than it did.

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  22. yeah.. for a short time..

    the real thing that will get the wii u moving is the games.. which I believe, and hope, nintendo can deliver throughout this year..

    I wonder why ppl still post this Pachter guy opinion.. just let him die out in his stupidity..

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    1. Yes, because anyone who doesn’t blindly assume Nintendo is the greatest and can do no wrong, is “stupid” and needs to die.

      And fanboys wonder why people think they’re pathetic and narrow minded…

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  23. PS vita, just saying…

    But I think Nintendo do not need to cut the prices, you know what makes the consoles sell? A new Zelda game.

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