'Wii U is priced too high, expect a price cut next year' - Pachter

Wii U has been priced too highly to keep people buying throughout 2013, Wedbush analyst Michael Pachter has told CVG. The analyst also speculates that the console will see a price cut before holiday season 2013.

Speaking with CVG, Pachter theorised, "We think that Wii U's price points are appropriate given likely demand from Nintendo's core fanbase, but believe that pricing will be too high to sustain demand given current competition from other consoles and tablets," he said in a research note."

Meanwhile Nintendo of America CEO Reggie Fils-Aime has stated that the company's $299 pricing gives players 'strong value'.

Pachter continued, "In our view, Nintendo was smart to introduce the Wii U at higher price points in order to maximize initial sales from its core audience. We expect 1 - 1.5 million Wii U units to be shipped into the US by the end of GameStop's fiscal year (January)."

"We expect demand from Nintendo's core fan base to remain high through the end of its March 31 fiscal year. Once initial demand begins to subside, we expect Nintendo to lower prices", he added.

"We don't expect a price cut until summer 2013, at the earliest," Pachter concluded, "but do expect a cut prior to holiday 2013. Any prospective price cut will depend largely on competition, which we expect to materialize in the coming weeks."

What do you think? Is $299 too high? Speak your brains below.