| RolStoppable said: $300 would be a huge gamble. While it's true that Nintendo could initially sell the handheld at that price and it would still sell out, it's highly probable that sales would stall pretty soon after the launch period, forcing Nintendo to drop the price within the first year of availability. Quick price drops devalue products, because consumers expect further price cuts in the not to distant future. More people holding out obviously results in lower sales. But most importantly, what Pachter is forgetting about is that every $50 less spent on the hardware itself can potentially go to software and that's where the real money is. |
This. And also, 3DS sale is a deal like any other, a balance must be found between seller's need to profit and buyer's purchase power and willingness to spend. And this balance must also take into account the price of competing products, of previous products now become cheap and the new features and benefits the new one offers compared to them and what overprice they can justify for the buyer, and maybe many other things. I think He's right about some things (but not about a Wii1.5 with HD), but when talking about prices and fees, Pachter only takes into account shareholders' interest and nothing else. Were He a stallholder at a market, I'd buy from His competitors.
This said, everybody hail Pachter already, anyway, even an analyst god can be wrong every now and then, no need to go into a sulk with Him for this, let's instead enjoy another dose of superpowers He's transmitting to us by just participating in a thread about Him!
