A Hour With Michael Pachter: a Talk on PS4, Xbox One, Wii U, Titanfall's Exclusivity, Morpheus, More

DualShockers spent a little under one hour chatting with Wedbush Securities Analyst and crystal ball holder extraordinaire Michael Pacher, that gave us his opinion about quite a few different topics, ranging from Morpheus to Sont, Microsoft and Nintendo, touching Electronic Arts, Titanfall, Ubisoft and more.

[GribbleGrunger]

Is there anything you can do to clean the sound up a bit? It's sounding muffled here, although it could be my laptop speakers I suppose.

[Abriael]

Unfortunately there was a problem. Pachter discovered at the very last moment that Skype was blocked at his office, so we had to set up a conference call and that screwed up recording a bit. :(

In additiion to that my microphone suddenly died, but luckily it's still understandable.

[GribbleGrunger]

Yeah, I can hear it better through my TV.

[GameNameFame]

At this point, MS is working to fix their mess up. However, they cant fix weak hardware and 50 percent power gap.

Fanboys may believe in secret sauces, but you cant change hardware. Dx12 mostly benefit PC. Even MS's slide says PC and examples are PC. Just desperate fanboys are trying to take it out of context.

Any software can be ported to pc anyways.

[NewMonday]

"Michael continued by saying that the attach rate for PS4 on Titanfall would have probably been around 30% of 15 million, so they missed on the chance to sell another 4.5 million units sold. If their profit is 15 bucks a unit they missed out on roughly 70 million dollars worth of sales"

publishers get $36 out of $60 meaning EA lost over $160 million, this is not even counting sales lost on PS3, meaning EA lost over $300 million.

-------------------------

"On the other hand the game is not on PS4, but that’s a reason why a million or so people will buy an Xbox One. Counting the discounts from retailers, the Titanfall bundle makes the Xbox One cheaper than the PS4, so EA is getting back quite a bit in sales"

Titanfall hardly moved 100k XBone units, those who want it can get it on 360 or PC

-------------------

"Pachter also talked about the difference between talking to gamers and talking to investors, and explained that his predictions have the purpose to tell investors what companies might do"

hate to be an investor taking advice from him

[abzdine]

i really don't care about Pachter's opinion. the guy's way too subjective to be taken seriously.

[UltimateMaster]

I'm calling it.
The VR headsets will be the most profitable market for Sony yet.
Patcher: "They rather spend their money on marketing rather than VR headsets"

What's the need to market something's that's sold out? That would be wasted money, but we all know Patcher's Xbot personality. He fears success of VR and what it could mean for Xbox.

Patcher: "Microsoft probably bought the exclusivity for 100 million $"
Yeah, for sure EA regrets it, when the game could have been sold to 6 million PS4 and 80 million PS3s.
60$ a game, let's assume 40$ profit (not the ridiculously low price of 15$, 15$ barely covers the cost of the game if sold 1M) 40$ x (PS4 current ratio of sold game VS X1. Average 2.69) x Numbers of Titanfall sold on X1 = more than 100 Million $... (118M) that's for PS4 alone not counting the PS3. But of course, Microsoft will try to downgrade everything in it's favor.
Yeah, you said it right the first time Patcher, Microsoft's getting their money back worth, not EA.

[UltimateMaster]

Patcher: 4:23 "Gamers aren't particularly interested in peripherals. None of the peripherals are ever done well with the exception of kinect."

ROTFLMFAO!!

"...less the motion controls and more the voice commands."

You don't need a motion control camera with speakers on the side to be able to enjoy Voice Commands. All you need is a microphone, any Headsets will work with Voice commands on the PS4 (but you need kinect for the Xbox One).

He simply owned himself in his own argument...

[Cindy-rella]

i can't believe titan fall isn't doing too well sales wise. every minute on the tele theres an advert for it and its been happening weeks before it launched. its a good game from what I've seen and with such massive hype and commercial campaign I'm quite surprised it hasn't sold millions

[KonsoruMasuta]

It will probably do better when the 360 version comes out. I don't know why they delayed it for so long.

[Flutterby]

You seriously don't know why? The one and only reason is they wanted to shift xbone hardware and to get the sales they wanted they didn't want people to get it on the 360 and miss out on the xbone console sale. That's also why they delayed it again , because the xbone sakes of titanfall where not what they wanted so left it a bit longer to see if they got up a bit more.

[Godmars290]

@Flutterby:
And some people, including myself, just don't understand how such a tactic is suppose to work. people who wanted it on the XB1 got it on the XB1, and people who want it for the 360 will get the 360 version. Reactionary buys have already reacted, and even there are some left, can't imagine more than a few hundred - a thousand - not being able to wait a few weeks or a month for a $60 game they'd spend $500 more.

[forcefullpower]

They are hoping the delaying will help with adoption rate for the xbone. Its a combination of thing more to do with them being worried that once people buy it for the 360 they wont upgrade to xbone but may get the ps4 if Titanfall 2 comes out on it. The convertion rate from 360 to PS4 could be huge and more damaging for them with second addition than the first.

Edit:

Also I didnt think EA backed Sony last generation at all. They jumped in bed with 360 from the start. Sony where over year late to market.

[Realplaya]

@ Godmars290 Do you not understand business 101. The reasoning is to try any tactic possible to move systems. Microsoft wants to shift more systems so they had to push the 360 version back therefor people who were on the fence with getting the system it gives them more incentive to pick it up. So if they are impatient then they can drop that extra coin.

[PoSTedUP]

@godmars- yes its comming on 360, but the less ammount of people that know that, the more people will buy an X1 to get it. let me explain: 1.) they havent talked about it or even mentioned the 360 in a long time. 2.) they havent shown any game play of the 360 version. 3.) the commercial say "only on xbox and pc" and they only show a pic of an X1. and 4.) they delayed it on 360. put all of this together and that is them really wanting TF to push X1's and hope they can deter as many ppl away from knowing about the 360 version and towards a brand new X1.

[Godmars290]

"Do you not understand business 101"
Yes, but this isn't supply and demand. You're talking about 103 or later: manipulation.

Force, what's not registering to you and Realplay was my end comment. That people have to spend $500 to play a $60 game. Whether on the fence or not, especially on the fence or not, a significant number of people are going to stay for longer than the short time the 360 version of the game has been reported to have been held back. Likely as result of what MS wants and what EA wants. Nevermind that anyone who's waiting for the 360 version of the game is waiting for that version.

This situation just strikes me as a lack of common sense, which seems to be the mindset of modern business.

[guitarded77]

Dude... I hate to join the chorus and continue beating a dead horse, but the delay thing was pretty obvious. MS was using Titanfall to push X1.

I think sales on 360 will be decent though. There is a huge install base, and a need for "exclusive" titles. There is the potential that the 360 sales could suffer from the delay. Sometimes when a game releases later on another platform, the hype behind it just isn't the same. Gamers have seen enough of it online, to know if they really want the game or not, and sometimes that can be a bad thing.

[PoSTedUP]

godmars, we explained how this tactic is suppose to work. it is commonsense. hype game: sell console. deter ppl away from one console: sell the other. 101. they want to milk it bc X1 isnt doing as well as they want it, this is to boost it as much as possible. which is really the most they can do atm. after they milk the X1, Then they will later release the 360 version, hype it, and milk it for all its worth. that is the best way to maximize profit in this situation.

[Godmars290]

It is not common sense. It was something done at the 11th hour because initial sales of the XB1 version, along with supporting sales of the console itself, fell well below expectations. Now a market some PR douche has no respect for is being poorly and obviously manipulated. Having one carrot waved in front of their face in the hopes that they'll buy a larger carrot.

And again, this isn't just MS's "game" but EA's as well. What one company wants is going at odds with what another does. Meaning that while they both want to sell Titanfall, once would rather see a specific version sell over the other, or at least a correspondingly large amount of consoles to go with them. But that didn't happened to their satisfaction. So now they're trying to influence an outcome that's already happened.

If anything, in the really worst possible outcome, the 360 version comes out and gets ripped to shreds in reviews. Is hopelessly buggy. A result like that would likely spur XB1 sales better, though would still be a bad thing for EA, who would take the bulk of the bad reaction.

[Realplaya]

@ Godmakars290 Don't take this personally but do you think Microsoft cares about how you feel. Your 1 of millions with money to spend. The thing you have to do is put yourself in their shoes they are a business and in order to make money off of new product they have o convince you to buy their new offering. If they give you the same game from the the new system that you get on the old system why would you buy the new system?

We know how you feel as a consumer and as a consumer myself I feel your pain but at the end of the day you can't be to engrossed and attached to these companies they will do something that lets you down at the end of the day.

[PoSTedUP]

um, yeah i didnt quite understand your point. justas long as you acknowledge that they are trying to influence thw outcome. there really is no other reason for them behaving they way that they are. and yes, obviously EA has something to do with it, so do you think they are going to let MS screw with their game on an 80million installbase platform? ha. you contridicted yourself, kinda. well your theory makes no sense if you really read that jumbo.

MS: we're going to f*** up your chances of getting ANY sales on the 360's 80million install base, EA.

EA: ok, sure thing, buddy.

lol. no.

[Back-to-Back]

"I don't know why they delayed it for so long."

To artificially boost sales numbers and try to get fools to buy into their new system.

[Bigpappy]

he never said Titan falls was not doing well. Where did you get that information

@ forceful power: A Titan falls2 Would not happen for at least 2 years.so what you are saying does not make sense.

[mediate-this]

@cindy rella
Wow you are ridiculous, one million titan fall sales on xb1 is not good? One million sales for a console that has a install base of 4 million is bad? Are you being dumb on purpose?? But one million sales of infamous:ss to a console that has a install base of 7 million is great?

Your logic is confusing.

[WilDRangeRrfc]

You get disagrees for telling the truth this site is so bias towards Sony,I have PS4 + X1 and I love them both, I have ISS and TF and all I play at the minute is TF best game I have played EVER,people knocking X1 need to realise PS4 is 15-20% more powerful nothing more X1 is a great console and feels more next gen to me,and anyone who says the DS4 although way better than DS3 is anywhere near as comfortable as X1 pad is deluded,my thumbsticks on DS4 feel cheap and are not concaved enough meaning sweaty thumbs still slip off especially when playing Fifa,I gave about 8 friends advice on what console to get and they listened to me and got X1 all of them!!
Xbox has the best controller and games and Live has a better community no one talks on PSN and the voice chat quality is horrible,yes PS4 has really impressive graphics and is defo more powerful,but X1 does a lot better than PS4 in certain areas one being voice chat,install times on X1 are bad compared to PS4 though,they're both great Infamous and TF all week for me

[mediate-this]

@above

I know man, all im doing is adding a unbiased perspective, i have both consoles too, and i seem to be playing x1 more regardless of the ps4 being more powerful. If:ss is a good game, but i already beat it and am not going back to it. Unless we get dlc.

[HiddenMission]

To both of you no one said anything about sales of either titles attach rate so no point in bringing this up.

How you two went off on a tangent about personal opinion is beyond me...I could easily say the opposite. I think PSN is superior, DS4 is superior, PS4 games are superior, voice chat is superior...do you see what I did there my personal opinion counters yours so what's your point of putting all that when it's subjective.

Both console are good and depending on the person one will be favored more than the other. Every gamer know either only got a PS4 or if they got both they spend more time on their PS4's vs their XB1's. That's just from my observations.

[Flames76]

Its been the highest pre ordered game this year with over 1 million.It will hit 2.4 million ending march 31 and it still hasnt launched on the Xbox 360 yet.Not sure where your getting its not selling well?Do you think its gonna sell 15 million copys on a system that has sold 4 million consoles in the past 4 months?Titanfall sold over 1 million in 3 days on the X1 thats crazy

[Platinum_k]

proof?... oh wait, you don't

I too like to pull random numbers out of my ass

[TFJWM]

talking about PS+ "They also learned that the more they give you free that doesn’t cost them very much, the more people will perceive value in the system."
Umm not sure how that is "perceived" value that is straight up value

[Belasco]

Man, you guys really are on alert for the most infinitesimal slight against Sony, it's a little nuts. Otherwise, Pachter actually makes a good point about Nintendo, they do need to go back to the drawing board and release a beast of a console.

[LexHazard79]

Lol...good one Abriel!
"Crystal ball holder extraordinaire"...

[CYCLEGAMER]

Sound keeps stoping at 22 seconds for me…anybody else having the same problem?

[Brazz]

wow... for the first time i agree whit Patcher.We have a prety solid talk here.

[rhap]

Do people still talk about Titanfall's exclusivity? We need to move on for other games coming as well, please.

[DanielGearSolid]

Difficult to understand Nelva

[Abriael]

yeah, sorry about that. My microphone died on me. Luckily what I say isn't all that important :D

[wonderfulmonkeyman]

I can't bring myself to watch the video.
Pachter is, as far as I'm concerned, a detriment to the gaming community, due to all of the half or little researched predictions he keeps feeding to investors and all of the negative spinning he keeps doing.
Dual shockers should have picked a better guest; this guy's a loon.

[Boody-Bandit]

"a detriment to the gaming community"

Honest question (per my name sake).
Who in the media isn't a detriment? I bet you the list would be 100x harder to compile than vice versa. Most of them, and when I say most I nearly ALL, have an agenda, are extremely bias, have unrealistic expectations, are burned out, doing it for the wrong reasons, ignorant, unqualified, just in it to collect a check or for a ton of other wrong reasons, or are flat out bought and paid for.

I like some of the newer independent sites and a few youtubers more so than guys like Pachter and some of the bigger and more funded sites in the industry.

Instead of us gamers being at odds (this is not directed at you WMM but as a whole) with one another over nonsensical BS like who sells more, what's rated higher, what console is more capable, etc and so on. We should ban together regardless of differences and demand more from the media and especially this industry.

Pachter is a product of everything that is wrong with this industry and the media. I'm not a flipping stock holder. I'm a GAMER! Why is it that more articles are about negativity and division than creativity and flat out fun?

/end rant

[Activemessiah]

Personally, I would have bought Titanfall if it had a singleplayer but obviously it's not aimed at me so, no sale.

[RPG_Lover]

More Nintendo Bashing from him? Not that surprised.

Sorry, but Iwata lead Nintendo to the greatest heights a game company has ever been.

[Illusive_Man]

He is not bashing. I love Nintendo but they have not adapted well to the new age.

[RPG_Lover]

yes he is.

Nintendo has not adapted well to the new age? Is that why in 2013, they were number 1 in software and hardware sold? Because they have not adapted?

Is that why Nintendo is growing? adding staff, building buildings, while other companies are shrinking? because they have not adapted?

Sorry dude but you are talking out of your backside.

Under Iwata, Nintendo saw the highest heights a game company has ever been.

And one last thing.

How will bad mobile games convince gamers that Nintendo games are great? Does not make sense to me.

[Realplaya]

I can tell by your response that the only thing Nintendo doesn't have is the internet popularity going for them. I guess the 8th generation will be about who can boast about what there systems can do the most.

[Jay70sgamer]

RPG ...I agree there will probably never be a 1 -2 punch domination in gaming with what the wii and the ds did over 250 million consoles sold ....ds(154,000,000)+ wii(101,000,000)what CEO or what video game company ever dominated in both handheld and home console in the same generation Mr Iwata brought nintendo billions of dollars in sales not even counting the software in which most of the money is made .... It's funny nintendo just pulled off the biggest dominating era in the video game history and people are talking they should go third party or stop selling hardware lol the typical what have you done for me lately attitude ....people also forget nintendo sold the most hardware and software in 2013 lol that's why guys like Pachter are a joke ....

[Illusive_Man]

Where did Patcher say Titanfall was not successful?

[No_Limit]

He didn't, it was made up by the the users here as 90% of them probably didn't even go to the site for that interview.

[Pinkdolphinyfg]

The gaming community needs to stop latching onto Titanfall and its exclusivity's nuts already and move on. The game is a success critically and commercially now lets move on to other topics shall we? For gods sake people let it go already.

[Illusive_Man]

But we should talk about Infamous SS?

[Pinkdolphinyfg]

Look to the side of the homepage and look at hottest games, Infamous ss is #2 talked about game right now..... If that was supposed to be a subliminal troll response then you just failed miserably.

[D3ATH_DRIV3R_777]

@Pinkdolpinyfg

I agree.

[Eonjay]

Great interview guys!

[OpieWinston]

I agree with you Abriael... VR is looking to be more of a gimmick. Which sucks because they'll be taking focus off more strong AAA experiences like last gen and more on integrating Morpheus and selling it. It's not going to make enough money or have a large enough install base to force any devs to put time into it.

VR on Console doesn't make a lot of sense. I think AR makes a lot more sense.

Oculus Rift will be successful due to the PC being powerful enough with the higher limits and optimization for stronger GPUs/CPU.

AR works for console because it doesn't require you to fully be taken out of the experience.

[NumOnePS3FanBoy]

That title. It's AN* not a hour. geeeeeez

[FlyingFoxy]

That bugged me as well, but these days people say then instead of than as well.. and should of instead of should have, and brought instead of bought

etc..

[MRMagoo123]

And using "there" where "their" should be or like i saw in another thread the people that use sales and sells in the wrong way. like "I hope that game sales well" where it should be "I hope that games sells well".

[Geekman]

Michael Pacthers solution to the Wii U is to cancel it, make games for the PS4 and X1, then make a take those games OFF those consoles when they have a new console ready.

Stupidest idea I've ever heard.

Most of the other stuff he said I mostly agree with though, but sometimes that man needs to think these things through before he says them. Imagine you spend 300 bucks on the Wii U, but the Wii U is cancelled, so you buy a PS4 or Xbox One to play Nintendo games. Then the Nintendo Wii W comes out, and you now have to buy THAT to play Nintendo games. Yeah.... lay off the drinks dude. Even if you already owned a PS4 or Xbox One, that's alot of money to invest to simply play Nintendo games.

[Belasco]

My lord, he literally did not say that, at all. He stated Nintendo needs to come out with a new console, and not stop making hardware.

[Geekman]

He said that after the forecast cut.

[mochachino]

The 360 version of Titanfall must be the only game in history that hasn't even had a single screenshot this close to release.

Glad MS cares so much about the 80 million 360 owners...guess a 360 owner's dollar doesn't count. Maybe 360 owners want some info too.. Typical though, MS always prematurely abandons their customers when trying to make new ones. Xbox 1 and the focus of 90% of their budget on Kinect a few years ago are perfect examples.

From my experience, don't buy an Xbox expecting long term support. After 3-4 years MS abandons you.

Say what you want about Sony but they haven't abandoned PlayStation customers prematurly for three gens now.

[beebap]

He keeps saying platstation now will be disaster when he does not understand the main rarson for it is old games backwards compatibilty. Also newer titles than two years some even 6 months have been on plus so we would sony not persuade them to bring newer games on now services. It will get them more money for games when sales have dropped.

[stormplyr]

I guess when Pachter made his statement about potential ps4 sales on titanfall forgot about the 80 million user base of the ps3.