*UPDATE* Michael Pachter is an ass: “Nintendo should unbundle Wii Sports”
Michael Pachter is an ass. Every couple of weeks the financial analyst for Wedbush Morgan pops up and makes some daft prediction about the future of the industry, and more often than not he’s completely wrong. By blogging about his opinions we’re giving the man more credence than he deserves, but he’s really annoyed us this time.
His latest prophesy borders on the idiotic. He suggests that a lower-priced Wii without Wii Sports would give Nintendo its best chance of success this year. Those sage words in full:
“The console has a price advantage over the Xbox 360 and PS3 that can be maintained if Nintendo chooses to un-bundle Wii Sports from the console. I think that if Nintendo were to do so and cut the price to $199, it would still sell a piece of Nintendo software to 80% of new Wii purchasers, and would end up effectively lowering revenues per console by only around $10. At that price point, the Wii should be strong again in 2009.”
What Pachter seems to forget is that that whole reason the Wii has enjoyed such huge success is precisely because of Wii Sports. It’s a crucial bit of software that most clearly demonstrates the capabilities of the console. It appeals to any and all gamers, regardless of their age or gender, and the minute you see someone playing it you instantly want to have a go.
Granted, it’s not bundled with the console in Japan, but that’s because Nintendo haven’t had such a struggle marketing the thing in their homeland. In Europe and America it’s a different story, and it took a while (and a few rounds of Wii Tennis) before we woke up to the joys of the Wii. If Nintendo want to continue the success of their baby, they won’t be dropping Wii Sports from the package anytime soon.
And besides, we’re confident that a price cut will happen without losing the software. How costly can it be to print and package a compact disc? Not as much as selling the console without it, we reckon. Michael Pachter is an ass.
Via Gamasutra
UPDATE: WiiWii has since spoken with Michael Pachter about this post and issued a public apology. You can read the full story here.
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January 30th, 2008 at 5:11 pm
The Wii Sports disc probably costs something like £1 to make and including the box it comes in the total costs probably amounts to something in the range of £2/£3. To be honest, I’d rather have Wii Sports bundled with the Wii.
And yes, a price cut will happen regardless or not Wii Sports is bundled. Although I don’t think that’ll happen until the Wii’s sales start dropping (which I just don’t see happening in the near future).
January 30th, 2008 at 5:37 pm
The paragraph you quoted was not a prediction or prophesy, but merely a statement, and the statement is entirely true. Nintendo’s price advantage can be maintained in the manner I described. I did not predict that Nintendo WOULD do so, just stated that IF they chose to maintain a price advantage over the inevitably lower pricing for PS3 and 360, they COULD do so by unbundling without costing themselves very much.
I’m sorry that you’re so annoyed, and vastly prefer that you continue to ignore me. Calling me an ass or an idiot is uncalled for, and if you are a person of honor, I am hopeful you will find the good manners to apologize.
January 30th, 2008 at 7:15 pm
@Michael: Ok, frankly the article is right when it’s saying that the Wii is enjoying this success story because of Wii Sports. For one, it’s free. So people will most probably play this game on the Wii first (like I did) and it’s simple design makes it really easy to pick up and play.
Bring some friends around and they play. They want one. And that carries on. This unrivalled piece of viral-marketing wass a master-stroke from Nintendo.
I have reason to believe that keeping is bundled with Wii Sports will end up with Nintendo gaining more money than if they unbundled, even if the PS3 and 360 drop the price.
January 30th, 2008 at 11:08 pm
The Wii is not selling by the boatload because of it’s low price. And it is not selling by the boatload because of its “revolutionary” motion controls.
The Wii is a must-have because of its “EASE OF USE!!!” Motion controls are just one way of simplfying videogame controls so that lapsed/non-gamers can get a chance to play without having to decipher a bizarre, 20-button controller. You hand a Wiimote to your grandmother and boot up Wii Sports Tennis, she can figure it out in 5 minutes. Hand her a standard controller and what is she going to do with it?
Wii Sports is a big part of that Ease of Use. An FPS or adventure game may be hard for a non-gamer to comprehend, but Tennis and Bowling are easy to translate to the Wiimote controls; a jumping off point for people new to videogames.
But the low price of Wii is barely a factor. No one looking for a Wii is going to buy an X360 when Wiis are sold out, EVEN IF THE PRICES WERE IDENTICAL. They want the one with the Tennis game their told them about. They want the one they can figure out how to play in 5 minutes.
January 31st, 2008 at 12:54 am
Michael, how would unbundling Wii Sports save that much money? As pointed out above, you’re talking about a dollar or so in duplication and insert costs — it even comes in a cheap-ass paper sleeve. Unless you’re talking about being able to recapture revenue by selling the game separately, this is a foolish position to take. And if you are talking about recapturing revenue by selling separately, you are even more foolish. Wii Sports is a budget title. Yes, it’s fun, but it’s not something that would sell for $49 at Best Buy. It would be a $29 or $19 title, and you’d need a proper case. It’s much better being bundled with the console as a demo.
You may not be an ass, but you clearly don’t understand how the games industry works if you stand behind your statement.
January 31st, 2008 at 12:54 am
Michael Pachter is incorrect for a couple of reasons. One, being that Nintendo would not be able to drop the price to $200 by removing Wii Sports from the bundle. It’s at most a $10 savings, and that’s pushing it. Also, considering that relative sales of the console versus 360 or PS3 haven’t changed that much, a price drop seems completely unnecessary. There’s no point to a price drop if you’re not losing market share.
January 31st, 2008 at 1:09 am
@rdaneel72: You are correct in that the Wii’s simplicity is a major factor in sales, it’s beautiful simplicity is truly a revolutionary idea. However, the price of the Wii IS a factor.
If Nintendo had marked the Wii at a similar price point to the 360, fewer people would have taken the risk of buying the console.
In relation to the original topic, Wii sports is extremely important. Michael’s “statement” seems to be a very personal opinion without any facts to back it up. Wii sports shows off the capabilities of the system without making it look bad because of it’s little graphics problems.
Wii sports got it right, from colours to controls, it is the single best thing that Nintendo could have bundled with the console (with the possible exception of Mario Galaxies).
January 31st, 2008 at 1:09 am
I dont really think that Wii Sports is an essential title to have. Sure, it demonstrates some of the technology, but if you went out and bought any wii game at all, it would do a pretty good job of it to. But I really don’t see why this guy is contemplating lowering the price. Its nearly impossible to find a Wii these days because there all selling out to fast.
And as for later, when the hype finally dies down, I’m sure many non -gamers think this is a reasonable price for, what looks to them, amazing technology, as compared to a ps3 or 360 where the average person doesn’t really understand why it is priced so high. As much as I hate to say it, (I have the ps3)Wii will come out on top even if it was priced 400$ without Wii sports. The technology seems much more apparent then the opposing systems.
and of course, as said by rdaneel72,an average person will see a Wii and think, “I could do that, its so simple” whereas a ps3 or 360 looks far too complicated when shown by an experienced gamer. Wii sports is definitely a great game to show for commercial uses, but I think some dad or mother would come into the store and be happy to spend another 20$ (as Im guessing it would be priced) on “that game where you play tennis and stuff”.
January 31st, 2008 at 1:12 am
Ad hominem attacks against Mr. Pachter are immature and unnecessary. I own a Wii that my friends and I play frequently. We never play Wii Sports. All of my non-gamer friends and family members are more interested in watching someone else play than engaging in it themselves. I understand the appeal of a new console coming with a game packaged rather than having to purchase one separately, but I wish it was one that I would be able to use for something besides coasting my drink. Perhaps give us a choice in the matter?
January 31st, 2008 at 1:18 am
I agree i hate wii sports. I’d rather play zelda, mario, or Smash bros.
January 31st, 2008 at 1:35 am
Personally, my Wii Sports makes an excellent coaster and nothing more. I hate all these minigame collectings being churned out for the Wii, and so I’d be just as likely to buy the system without it, even without a price cut. Of course, that’s just me.
January 31st, 2008 at 3:09 am
I hate all sports.
Therefore I would not care if it weren’t bundled.
And just because it would not be bundled doesn’t mean it would just be gone forever never to exist.
January 31st, 2008 at 7:54 am
I think the main thing is, those who don’t like it, are more the gamer folk, who bought the Wii for the revolution of control design and of course, the games that follow the brand (Metroid, Mario, Smash Bros, Zelda) whereas Wii sports is fun for…a little bit (for me, you guys probably tried it too and had fun for the first bit, then it gets old) it’s something that non-gamers can enjoy immensely. This is also a reason why it’s good that Nintendo isn’t losing money on the console sales, since a fair portion of the market may not buy any games other that Wii Sports, perhaps Wii Play, Wii Fitness when it comes out and some other mini-game packs. That’s not to say it’s a large portion of the market, but I wouldn’t be surprised if somewhere around 1 in ever 20, maybe even 1 in 15 or 1 in 10 are in this scenario, though that is stretching it a bit.
Wii is still sold out around here, people want them. Part of this is due to people sitting around and grabbing them when shipments come in just to mark them up and resell them too the poor suckers who don’t have a stockboy on speed dial..
In any case, to the issue in the topic, I don’t think the Wii has any issues for 2009, any price cuts to the console itself, as stated above, will not require the removal of Wii sports, though, separating the two may result in more revenue if the people buying the unbundled console were the ones who only wanted Wii Sports, this would only work if the console was only being sold unbundled though, since anyone smart enough would opt for the bundled version.
July 24th, 2008 at 5:45 am
well a few months later I think we can see the WII is selling just fine without cutting price at all. in fact the wii sells every unit they can produce.
By the way Michael Pachter can we still call you an ass for your statements on WOW. something about it having a 3-6month life? and that there isn’t 4 million people in the world willing to play a subscribtion console game. Im just giving Michael some crap mainly because I am mad about his constant calls on Take-Two going for 28 when it should go for 32-36 bucks a share.
Anyway it takes guts for mr. Pachter to make his calls (millions of dollars are riding on his opinions unlike ours) and he can’t be right everytime so don’t be too hard on him.
Good article sorry im so late to the party.
March 17th, 2009 at 7:41 pm
I fully agree, Michael Pachter is a retard with an overly high opinion of himself.
He says the dumbest of stuff and acts like he’s some all knowing god of the video gaming industry. Shut up Patcher no one care’s what you think! You don’t know crap about the industry, thanks to your dumb advice which was listened to Bully 2 was dropped and then when it turned out sales were better than you predicted they were busy on other games and set Bully 2 far to the side probably never to be made. You do nothing but give bad advice and put doubt in developers heads when they have good ideas. If your such an all knowing god of the gaming world why don’t you program the best selling game in history yourself…. oh that’s right you can’t cuz you don’t have the slightest clue how to make a video game.
April 15th, 2009 at 12:36 am
Michael Pachter is fucking brilliant.