Wedbush Morgan analyst Michael Pachter has some pretty dire tidings for Nintendo. According to the analyst, the Wii's sales will continue to decline unless Nintendo gives a price cut the go signal.
"We do not think that Nintendo’s Wii hardware forecast is achievable without a price cut, and as long as the Wii remains at its November 2006 launch price of $249.99, we expect continued year-over-year declines for that console’s sales," he said. "We expect a Wii price cut no later than November."
For the month of August, Pachter estimates sell-through of only 240,000 Wii units. That's down a whopping 47% compared to last year. Pachter also expects the PS3's year-over-year decline to continue with 160,000 PS3 consoles sold. Sales of the Xbox 360, on the other hand, is estimated to go up 5% to 205,000.
Keep in mind that these estimates are for August. The effect of the price cuts announced for the PS3 and Xbox 360 will only be visible once the September numbers are in since they spurred demand only during the last few days of the month. Pachter expects the PS3, in particular, to see a substantial sales growth in September.