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“What I actually think is going to happen is Sony’s market share gains are going to come at Nintendo’s expense,” Pachter says. “And Microsoft is going to chug along the way they’ve been with relatively flat sales and I think Microsoft is going to be OK with that.”

“I think what is likely is that Wii sales are going to drop more,” Pachter predicts. “You can’t really justify buying a Wii for $249. You get ‘Wii Sports’ with it but no hard drive, whereas you can get a PS3 with a Blue-ray player and a 120-gig hard drive and built-in Wi-Fi. And you can get an Xbox 360 with a 120-gig hard drive and access to Netflix and Facebook. It just doesn’t make sense to buy a Wii for $50 less.”

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Seems that he's still waving the flag for the PS3. I think that he forgot to factor in that the Wii has built in Wifi as well, and now with SD card streaming that replaces a need for a HD. Would be interesting to see Nintendo start bundling a 32 GB SD card to be the "fireback" to the HD systems having a HDD inside them.

Personally, I can't see people suddenly jumping to the HD systems, unless they're into M games, which is not the general audience that the Wii sells to anyway. People are expecting too much, though I DO agree that Nintendo should start adding some key elements into their bundles, like WM+ and a SD card.