14 DAY TRIAL // Nintendo is making a mistake by charging $250 for its new 3DS handheld unit, at least according to Wedbush Securities analyst Michael Pachter.
Nintendo presented its upcoming 3DS portable console last week, impressing almost anyone even related to the gaming industry.
Alongside even more details about its 3D technology, the friend code online system or the region locking, the company also revealed the price tag the Nintendo 3DS will have in North America, $250.
According to Michael Pachter, who talked with IndustryGamers, it seems that Nintendo is making a mistake by charging such a price for it.
Don't think he wants a cheaper device though, as Pachter is adamant that Nintendo is actually wrong because it doesn't charge even more for the handheld console.
"I'm impressed that they had the confidence to charge $249; I think that they're going to regret it. It's going to sell out and they're leaving money on the table. I'm impressed that they're this consumer friendly – that really matters. So it's not shareholder friendly, but consumers are going to love the $249 price point."
"If you explain the feature set to most consumers, they would say $300 or more. So $249 is a bargain, and I think this thing is going to be on eBay for $500 immediately," he said.
Pachter also says that Nintendo is going to encounter lots of problems with actually selling the device, as there won't be enough to go around.
"I think the biggest problem they'll have is that you'll never see one in stores in 2011. It'll be sold out forever. We'll get like a million or 1.25 million, and so will Europe, and those will be gone in weeks. Let's hope they can make 2 million a month and ship 800,000 a month to the U.S. so consumers have a prayer of getting one by Christmas."
Nintendo, for its part, plans to sell 4 million 3DS units until the end of March, just when it is released in Europe and North America, not to mention Japan, which gets the 3DS first, in February.
Last but not least, Pachter applauded the fact that Nintendo managed to draw in third party developers to the console.
"The content's great, and 30 titles in the first two months is double what you'd normally see from a product launch. I'm especially impressed by how many different third-parties are supporting it, because you've seen the third parties shying away from the Wii the last couple years, but it's nice to see them coming back."
"Overall, great price point, great content... my take is that consumers win."