Pricepoint is an absolute deal breaker. Nobody is going to casually toss in $250 for a device that plays phone quality games. This reminds me of THQ thinking everyone in the world would want a tablet for their consoles. That blunder ended THQ.
I agree and I think the loss of what...roughly 14% in stock value since the annoucement... kind of reflects that view--of course, there will be those that ignore that. I just hope we see a bottom soon. I'm not selling at these prices. However, I do think given the reaction--leadership should consider somekind of response. They should reward their early system adopters--get these devices into the hands of users--at cost. Screw profit (coming from an investor). Build marketshare with some volume that will bring in the game developers. Reward those earlier buyers with a discount, which will motivate those gamers to line-up. Those that wait--they pay full price.
"Passinate gamers" are more motivated by reputation than by cost and if people are using the system and liking the system's performance--that PR is more valueable than anything MadCatz can say. People don't trip over themselves to get their hands on a new iPhone because they're passionate about phones. Its the herd mentality--I want one, because they want one, because someone over there has one and they said it was cool.
Interestingly, the 2 billion dollar business of THQ sold the scraps for 72.2 million dollars. The market cap of MCZ right now is 42.2 million dollars. Maybe, MCZ will soon be a 2 billion dollar company. Apparently, THQ had one millions unsold units of their uDraw device. MCZ may change the name from MOJO to uGoober.
I am assuming MCZ is a lot smarter about hardware costs than THQ, and if the MOJO doesn't go well it won't affect the rest of the business. But as someone who was very excited about the Mojo I am in complete disbelief at this move. I already have an Ouya, an 808 stick, and a bunch of other stuff like that. For $250 I can pick up a decent tablet, even with HDMI out. Are they trying to trick parents by being on the shelf next to PS4 and Xone ? Really disappointed.