Outspoken industry analyst Michael Pachter is under the impression that Sony’s forthcoming PlayStation Vita will rob Nintendo of precious market space. Pachter also believes that Sony’s handheld will most “likely contribute to further declines in Nintendo’s share price”. Do you believe that the PlayStation Vita is as big a threat to Nintendo as Pachter is making out to be?
“We continue to believe that handheld game sales will suffer in correlation to the growth of smart phone sales, although we think that the handheld games business will remain a healthy niche for the foreseeable future,” he said in an investor note.
“With that said, Sony’s announcement of PS Vita pricing (at $249) led many investors to believe that Sony and Nintendo will divide a shrinking handheld market, and likely contributed to further declines in Nintendo’s share price.”
“Nintendo, in particular, saw its share price decline, largely due to continuing uncertainty about its handheld business, and skepticism about its planned launch of the Wii U next year,” he added.
“The company did not provide specs or pricing for the device although the hardware was truly impressive, it is impossible to determine whether it will succeed or fail without knowing how it compares to the competition in terms of pricing and performance.”