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Wedbush: Wii HD could "seriously damage" a PS3 "comeback"

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It's the report that keeps on giving. Wedbush Morgan's exhaustive state-of-the-Union paper - Money for Nothing: How Ancillary Revenues Can Extend The Console Cycle - reckons a 2010 launch of an HD Wii SKU could bang PS3's "comeback" chances right up the chuff.

The company also reckons we're likely to see a Wiimote with built-in MotionPlus.

From the document:

Our vision is that Nintendo will wait until the cost of a console with technical specifications similar to the Xbox 360 (1080p output at 60 frames per second) is sufficiently low that it can launch close to the $199.99 price point. We would expect such a console to be fully backward compatible with the current Wii, but would expect the new console to have additional features and functionality. It is possible that Nintendo will redesign the existing Wii controller (the “Wiimote”) to include builtin Wii Motion Plus, and also possible that the Wii Plus (our best guess for the name of the Wii HD) will include a hard drive.

In our view, if Nintendo can offer such a device by year-end 2010, it will be in a position to seriously damage Sony’s chances of a comeback this cycle. We would expect publishers to support such a move, given that the cost of porting an Xbox 360 game to the new Wii Plus HD format would likely be lower than the cost of building a ground up Wii game (we estimate under $5 million). Should Nintendo be able to convince publishers like EA and Take-Two that the Wii Plus should be supported by the entire EA Sports catalog and by the next installment of Grand Theft Auto, it should be in a position to successfully convince consumers that the Wii Plus is the last console they will ever need to purchase.

Want some more from the report? Good. Because there's an epic amount yet to go.

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