Michael Pachter, research analyst at Wedbush Securities, recently claimed that no developer or publisher, other than Nintendo, will support the new Wii U in the future. Pachter said he thinks that when next-gen consoles from Nintendo’s competitors are released, they are going to be better than Wii U. Pachter also said he thinks Nintendo will eventually become completely irrelevant.
“I think you’re going to see now with the Wii U, notwithstanding its early launch support, nobody’s going to support it. I don’t think we’re going to see every game on the Wii U next year. I think when next-gen consoles come out they’re going to be better than the Wii U. Call of Duty is amazing on the Wii U this year. The problem with playing Call of Duty online is it’s a community and if there’s only four people playing it on the Wii U it’s no fun. Nobody in their right mind would buy a Wii U and say ‘I’m going to play Call of Duty.’ That’s like saying ‘I gave up Facebook, and it’s Google+ now’.”
“Nintendo’s trading at about $3 billion of equity value; it was trading at about $80 billion. The market hates business models that start to show losses, and start to fail. Crappy little Riot Games, doing $150 million in revenue and wildly profitable, is worth a buttload more than Zynga, doing $1.1 billion and not making money. I think Nintendo becomes completely irrelevant. They have their niche, Nintendo’s first-party content is great content, and hardcore people will keep buying their consoles, but they’re not going to only play with Nintendo consoles.”