Famed Wedbush Morgan analyst Michael Pachter has commented on Nintendo’s third quarter financial results and says that Nintendo cutting the Wii U forecast is further evidence that Wii U doesn’t capture the imagination of the Wii. Pachter went on to say that the only thing that will get the Wii U moving off store shelves is a much needed price cut. Here’s what he had to say.
“I always thought Nintendo’s Wii U software forecast made no sense.”
“They initially guided 24 million, are taking that down to 16 million, which is a 4:1 software attach rate. That’s reasonable, especially given that the installed base is 3 million hardware units now and the guidance implies they need to ship only 4.31 million more software units.”
“The hardware guidance is disappointing, and there isn’t really anything that will get hardware moving other than a price cut. I think they got it wrong with this console, it just doesn’t capture the imagination the way that the Wii did.”
“The Wii U is not going to be very competitive if Sony and Microsoft launch comparable consoles at comparable prices. The early weakness will cause many third party publishers to re-think support for the Wii U, and we might not see much support at holiday 2013.”