Outspoken industry analyst Michael Pachter has told Venture Beat that he believes Nintendo will abandon the hardware market in the next generation of video game consoles. Pachter doesn’t believe that there’s a market for Nintendo hardware any more, but there’s still lots of interest in the innovative software that they put out.
“They are more than a decade behind the curve, and they are so insular that there is no desire internally to learn from others. Nintendo hardware goes away. There is a place for their content. There is no place for Nintendo hardware. Nobody cares. They will have to abandon hardware.”
Thanks, Fbt and Nintendo Commander Quadraxis
Famed Wedbush Morgan industry analyst Michael Pachter has sent out his monthly note and E3 preview to a select few. In the notes Pachter comments on what he expects from Nintendo at this year’s E3 event. Pachter says that he believes Nintendo will have a more subdued E3 than Microsoft and Sony with a lack of compelling third-party content for its systems. Interestingly he thinks that Nintendo may introduce a $50 price cut for the Wii U in an effort to boost sales of the console.
“We expect Nintendo to have a more subdued E3 than its peers.
We expect a number of high-profile game announcements for the Wii U, which continues to struggle despite a September 2013 price cut. We believe Super Smash Bros. will be the most high-profile Wii U release on display, with a broadcasted invitational tournament on Tuesday. We do not expect a lot of compelling third-party content for Nintendo hardware. In addition to games, Nintendo may also announce a Wii U hardware price cut of up to $50 to further jumpstart sales, with a Wii hardware price cut to $99 a possibility as well.”
Online gaming publication Gamingbolt has conducted a lengthy interview with famed analyst Michael Pachter which covers a number of topics. Interestingly, Pachter believes that Nintendo will have the most new announcements at E3 this year out of the big three. Pachter also mentioned in the interview that despite Nintendo’s struggles with the Wii U and declining Nintendo 3DS sales he very much doubts they will ever go third-party. Here’s some extracts from the interview.
Right. So, basically, you said that Nintendo will have the biggest content based announcements at E3 this year, especially compared to Sony or Microsoft.
Michael Pachter: Yeah, I think so. I mean, I think we are so overdue for some Smash Bros. and/or Mario Kart, I think we’ll see them, I think they’ll be playable, and I think they have to have them out by this holiday. I mean, if they don’t get these games ready soon, then you can just forget the Wii U. It’s like, come on: how many years does it take after launch to have one of your core, highest selling franchises out?
Personally I do think Mario Kart and Smash Bros. will ignite some interest in the console.
Michael Pachter: Yeah, I do too, and I mean, 5 or 10 million units, yes, but not 30 million units, not 50 million, they’re not going to catch up. But they won’t go third party, so the answer to your question is, no, I don’t think they’ll go third party. I think they’ve convinced themselves, I mean, I think they’d rather pursue their health and fitness initiative.
Wedbush Morgan video game industry analyst Michael Pachter has told Game Informer that the Nintendo 3DS will continue to thrive despite smartphones and tablets, but the PlayStation Vita will “die a slow, painful death”. Pachter reiterated that Nintendo owns the dedicated handheld space and Sony misjudged the size of the market.
On the state of the PlayStation Vita:
The sales are horrible. My model says the Vita sold 4.2 million last year. It’s a pretty small number and I don’t think they are going to build a business selling 4 million a year — and that number could go down. Vita is a little bit too elegant and a little too expensive. I always feel like I’m going to break it. But then it has relatively few games because they are complicated to make and the market is so small. Very few publishers are spending money to make them. You had Assassin’s Creed: Liberation, that cost Ubisoft a lot. It’s a whole new adventure. Sony will spend the money with their internal studios, but you’re just going to see [Vita] die a slow, painful death.
It’s super high-end in the market; it’s too expensive for a casual gamer. I know that phones are subsidized, but you can get a smartphone for free when you renew your contract. You can get an HTC free, or spend $200 on a Vita. It’s too [hard] to pass up the free phone. They are never going to get the casual end of the market.
On whether connectivity with PlayStation 4 could boost Vita sales:
I don’t quite get it. First they were selling it as a controller, which was lame. I would rather just spend $50 on a controller. They were selling it as a controller because…I have to turn off the game on my TV because American Idol is on and I have to continue my session on my Vita? That’s what a DVR is for, you can watch American Idol later. I think most people who have competing concerns about use of the console versus watching TV have their console on a different TV from where their wife is. I agree those are cool features, but it’s limited.
On the future of Vita and Sony in the handheld market:
There is no future and they couldn’t do any better [than Vita]. The market is what it is because of Nintendo. Nintendo built the market and Nintendo has the best name in handhelds. I just think [Sony] misjudged the size of the market and launched it into this s—storm of mobile destroying the casual end of dedicated handhelds. And Nintendo’s not giving up much share on the hardcore side, because they have three games to every one Sony game, and they are good games.
Famed Wedbush Morgan analyst Michael Pachter believes one of the solutions to Nintendo’s dilemma would be to temporarily release their games on competing consoles such as the Xbox One and the PlayStation 4. Pachter thinks that by doing this in the short term – while they’re getting ready to bring a more competitive console to the market – they can then withdraw support and once again focus on their own platform.
So what’s the solution for Nintendo? In Pachter’s opinion, the company must swallow its pride and start publishing its first-rate software on competing platforms. Then, once Nintendo is ready to bring a more competitive console to the market, it can withdraw its support from the other systems and focus on its own platform again.
“We believe that it should reconsider its ‘all proprietary, all the time’ model, and should consider making its proprietary console software available on other platforms until it is able to release a new console. Once Nintendo has a new console on the market, we think it would make sense for the company to pull all of its software from the PS4 and Xbox One, and go back to being a proprietary software maker. In the meantime, we believe that the company has a problem that it is not acknowledging or addressing,”
Online gaming publication Kotaku has enlisted the help of famed industry analyst Michael Pachter to analyse the fortunes of the Xbox One, PlayStation 4 and Wii U. Pachter sent the following email to a variety of investors, reporters and other members of the video game industry. He expects that Sony will sell 37.7 million PS4 consoles and Microsoft will sell 29 million Xbox One consoles by year-end 2016. However, Pachter expects Wii U sales to be under 20 million by 2016.
- We expect Sony’s and Microsoft’s new consoles to thrive over the next three years, with cumulative worldwide sales of 37.7 million PS4 and 29 million Xbox One consoles by year-end 2016. We do not expect Nintendo’s Wii U to fare as well, with cumulative sales of under 20 million by 2016.
- Our overall forecast is based upon several assumptions: first, we expect console prices to decline only modestly over the next three years, with PS4 pricing in the U.S. dropping from $399.99 at launch to $299.99 by 2016 and with Xbox One pricing in the U.S. dropping from $499.99 at launch to $349.99 by 2016; second, we expect new release software pricing to remain at $59.99 in the U.S. for the next three years; finally, we expect Nintendo to continue producing the Wii U. Should any of these assumptions prove to be incorrect, hardware and software sales will be affected, and it is highly likely that the ultimate results will differ significantly from our forecast.P
Famed industry analyst Michael Pachter has told MCV that he believes that Wii U hardware sales will fall 65 per cent year-on-year. This means that Wii U US November sales are estimated at 149K by Pachter. The news comes ahead of the November NPD results which should indicate just how well the console has done against the Xbox One and the PlayStation 4. However, it should be noted that last November is when the system launched, so sales should be higher.
Pachter added that Wii U is expected to have suffered significantly as a result of the launches, with hardware sales falling 65 per cent year-on-year. Xbox 360 and PS3 sales are predicted to have fallen 44 per cent and 28 per cent respectively