Baird analyst Colin Sebastian has detailed some of the features the next generation systems will feature and has regulated Nintendo to “niche”. 

In an investor email the analyst said:

“E3 2013 will be the most important game conference since Y2K,” and that “we continue to expect both Sony and Microsoft to host dedicated events before E3 to announce their new platforms.”

He added: “New console hardware will borrow from high-end PC components, providing hybrid physical/digital distribution models, enhanced voice controls and motion sensing, broad multi-media capabilities and lower launch price points.”

Rumors are floating around that the next generation machines from Microsoft and Sony will cost around $400.

Sebastian also added “early production issues with Sony’s PS4, which, if accurate, could limit unit shipments or regions at launch.”

Nintendo he said, has now shifted “to niche category. Following a somewhat lackluster launch, Nintendo must bring to market major first-party releases and retain third-party support to limit market share losses.”

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