Pachter: Wii U price must not exceed $300

Analyst claims Nintendo is embarking on 'rear-view mirror strategy'

Nintendo must sell its next generation games console for less than $300 (£190) per unit in order for it to stand a chance at retail, a Wedbush Morgan analyst has claimed.

Wedbush Morgan games analyst Michael Pachter

Games industry expert Michael Pachter told CVG that, based on Nintendo's E3 press event, he was uncertain whether the Tokyo company has a "killer app" that could stimulate system sales the way games such as Wii Sports had.

"The console must be priced below $300 to succeed, in my opinion, and best at $249 or less," he said.

In a reflection on Nintendo's E3 press conference performance, Pachter branded Nintendo's Wii U approach as "a rear-view mirror strategy".

"Nintendo is intent upon repeating their success with the Wii," he said.

"While I agree that the Wii U controller is sufficiently novel and different from traditional controllers, I am not sure that there is a killer app that will drive Wii U adoption the way Wii Sports did for the Wii.

"At E3 I was not particularly impressed with many of the games, and in particular found Sing baffling. I don't understand why I need a tablet to read Karaoke words rather than reading the words on the TV screen instead."

Nintendo's press conference in Los Angles last week was met with criticism from a number of analysts and journalists. The company's share price sunk for three days running, though on Monday it closed up 1 per cent.