Webush Securities analyst Michael Pachter is back. This time he has commented on the Nintendo Switch saying that it needs to be priced at $250 and compete with the Playstation 4. Stating to Siftd..
‘You know, I think that Nintendo needs to make a console that is competitive with PS4, which is currently $249,’ he said. ‘It can be slightly underpowered at $249, and people can buy it, because it’s a Nintendo console. It probably can’t justify a price above $299, which is the current price for the Xbox One S, unless it’s powered more than them, which doesn’t seem likely to me with a Tegra chipset.
‘So, I think the price has to be between $199 and $299. Below $200 is a magic price point- I don’t expect that, but below that point it will fly off the shelves. $249 is I think the right price, $299 is the outside, higher price. Above $299 is in trouble. So if I had to make a bet? $249. And I think that’s reasonable, because PS4 is there, PS4 Pro is $399, Xbox One S is probably going to be $249 by March, once Sony kick Microsoft’s butt again this Holiday. So, I think, that’s just the right price. I think people- I think it’s a good supplement for a PS4 or an Xbox One S. The other thing is, a lot of people will look at it as a handheld even though it’s far more sophisticated than a handheld. So I kind of thing they can’t get too far away from the price of a Nintendo DS, even though this is much, much more capable. So I don’t think you can charge more than twice the price- Nintendo DS is now under $100, shocking. So they’ll keep making those, 3DS I mean, because that’s a good product lineup. $99 for 3DS, $249 for Switch. So that’s my call.’