Nintendo

Nintendo: Pachter Says ‘The Blue Ocean Just Turned Very Red’ For Nintendo

Wedbush Morgan analyst Michael Pachter claims that Nintendo’s famous blue ocean strategy has just ‘become very red’ for the company. Pachter still believes that there’s room for the company in the video game market despite estimating that Nintendo’s business could shrink between 30% and 50%.

“There is room for them in the market, but the blue ocean just became very red.”

– Michael Pachter

127 comments

    1. Odio realmente ese individuo que hace cosas ascendentes y que hace el dinero fuera de él. Pero esto quizá un poco verdad, sé que está luchando Nintendo pero Patcher es el último ventilador de Sony por lo que él dice

      1. I don’t see much analysis in that statement, all he stated was something obvious (again). It’s now a red ocean because Sony & MS followed Nin with their Move and Kinect, now they’re fighting for the same market.
        Also, where the hell did 30% and 50% come from, where’s the reasoning behind those numbers? I think he’s saying worst case N will have a third of the market (perhaps split equally next gen), but I wouldn’t really know ‘cuz he didn’t give out his logic. Whether if it’s true or false, it seems like he keeps throwing out shit without supporting arguments.

  1. Isn’t this the guy who’s been all doom and gloom about the Wii U? So he’s negative about the positives and tries to be positive about the negatives?

    1. This is the guy who’s been doom and gloom about the entire video game industry since the turn of the millennium .

      He has never been right in that time.

      1. He’s been doom and gloom about the 3DS and they just announced it is off to a better start than the original ds.

      2. Actually, the doom and gloom, at least for the past 5-6 years, has mostly been focused on Nintendo, w/ occasional remarks about Sony and virtually noting about MS.

  2. they are in the red.. but not too deep. they can recover. they have to. i refuse to game in a world where sony and microsoft are the faces of gaming.

    nintendo is what i started with, and while i’m a little peeved with them, i can never bring myself to make comments like them nintendo-haters, who can also be described as retarded.

    1. Nintendo is the only reason I still like gaming… though I’ve been shing away from them as of the late….

      Still Nintendo needs to make some changes… this is bad… sere they’ll recover but they need to make improvements here and there…

      As for Patcher… he’ll bite at anything bad that happens to Ninty…

      on the plus side… the 3DS has crossed 8 mil!

    2. If Nintendo was going to succeed, then they’d have to make the Wii U much more advanced in graphics capability than the PlayStation 3 and XBOX 360. But the Wii U’s graphics capability is equal to that of the PS3 and XBOX 360. Just hopefully the Wii U will install games rather than just play them right off the disk and having a games updater like what the PS3 and XBOX 360 have, otherwise Nintendo is going to drop even further and end up having no choice but to become a third party developer, like what happened to Sega.

      1. Actually it’s been stated numerous times that the Wii U will in fact be more powerful than both the PS3 and Xbox360

      2. Installing games would be nice. You can do so with the Wii, but that requires modding.
        But what you stated is probably not what Nintendo needs to do. I personally think Nintendo needs to add more services to the Wii U, try to avoid too much shovel-ware, and have a larger variety of games made only for the Wii U/3DS.

  3. it angers me why this site is still reporting the words of this guy. i dont understand why its happening, can you stop giving attention to him now please!!

    whether or not this is true, he has a reputation for speaking rubbish. im not impressed that i have already seen his name multiple times on this site >:(

    1. I feel the same way. In my opinion, gaming sites report Pachter’s words because he is notorious for his flame bait statements. These type of comments are nothing but good for the gaming websites, as they grab the attention of countless fanboys and raise the amount of hits per article.

    2. I agree. If we can just ignore this annoying analyst, the world will be a better place.

      And what does he knows about video games anyway?!

  4. Is this really a surprise for anyone?

    You can only make infinite moneys for so long before you have a dry spell…….

  5. Hey, here’s a headline for you.

    “Gaming community to Michael Pachter: Shut up about industry you know nothing about.”

    Like I say on every single article that references Mr. Pachter… He has never, EVER had a relevant thing to say about the gaming industry, and his words are more often than not completely wrong.

    The man needs to stick to the industries he knows.

    1. Nothing coming to the wii for months is nintendos ONLY issue, once the wiiU is here everthing will turn around! The wii isn’t even being developed for; all nintendo teams have already moved to the wiiU. Nintendo needs to generate hype, even if its just annoucing that gta5 is going to be on the wiiU and contain exclusive content. Hell, even a lego city stories wiiU trailer would boost hype!

    2. Everyone is under estimating the console lately.

      The games, unique controls, graphics, & nintendo will kick everyones ass who disapproves Wii U

  6. Seriously? This guy needs to get a life. In fact, all the analysts predicting the demise of Nintendo need to take a serious step back and quit being so reactionary. Most of this big loss is due to the depreciation of the Yen against the US Dollar and the continued impact the earthquake in Japan has had on the country’s economy. Yes, the 3DS launch was bungled. Yes, there are no games for it (other than OoT3D) and yes, Vita looks poised to do some damage this holiday season. You could even argue that Nintendo has completely forgotten the Wii and isn’t delivering any decent software (other than LoZ: SS) for the rest of it’s cycle.

    The problem with all of those arguments is that those are gamer specific arguments–not business arguments. Nintendo has a BOATLOAD of cash on hand–always has–because that’s very typical of established Japanese companies. They don’t often invest their profits the way that American or Eurpoean companies do. They tend to be more conservative, far more parochial (look it up) and patient. And because of that, they can weather the storms of an up and down economy as well as a cyclical business like video games.

    Guys like Patcher and his ilk need to take a crash course in business before they start spewing their misinformed vitriol all over the internet like some cat in heat. All this is simply a flame bomb to try and get people to pay attention to him and the only way to make him go away is to consistently tell him what a dumb ass he is.

    1. That’s about the most intellectual comment I’ve seem on the internet so far, and I’ve been on the internet for about 13 years.

  7. Goddamnit Pachter will you shut your goddamn mouth already? You know nothing about video games, nothing about the industry, nothing about Nintendo. I’m about ready to beat your stupid ass if that’s what it takes to get you just shut up and move on.

    Why does dumbass always target Nintendo anyways? Why has he never said anything about SONY or Microsoft with this topic?

    1. Because Nintendo has less of a presence in the US, and when he started commenting on the video game industry, Sony was the market leader. He sees a change from when he started, and he doesn’t like it.

      1. So in other words, he’s a SONY drone who’s in denial? And he has a job as an analyst? That’s not good. That’s a terrible thing. Why do people hire biased chodes to work in this industry? It’s like trying to make two cars deliberately crash into each other.

        1. Crashing two cars into each other deliberately can be very profitable if you have insurance on both cars, and can make it look like you had nothing to do with it. And yes, your comparison is apt, if a little dubiously colored.

          Financial analysts are, more often than not, playing with other peoples’ money and making unqualified statements because there is no risk for them, and lots of people will pay them for whatever dribble they can spout.

      1. Me too. He doesnt even bad talk nintendo, he was very optimistic about the 3ds. I just consider it to be impossible to truly determine how the mass market will react to things.

          1. Sickr ive come to realize that people here blatantly disregard anything thats not “nintendo friendly”. It amazes me how people will down play or become enraged over something that isn’t pro- nintendo, even if its 100% relevant to the company.

              1. The ign fb page got me mad yesterday! It was talking about speculating gta5 on the wiiU, but nobody even had any ideas! They a) reped nintendo b) talked crap about the wiiU or c) didnt know what it was but talked crap about the wii or nintendo. I listed like 15 different ideas i have for that game, and it angered me to no end that nobody even contributed to the speculation from either side of the arguement.

  8. Quit with these negative posts. Most of the commenters here personally give Nintendo hundreds of dollars each year, including me.

  9. As always, never take what Pachter says to heart. At this point he’s getting paid to predict Nintendo’s downfall.

  10. Is the fact that other companies have gone into Nintendo’s “Blue Ocean” area (motion gaming) that much of a surprise? Not at all, this “analysis” was made by everyone who even had an inkling of an idea as to what happened at last year’s e3. This is absolutely nothing new.

  11. BYE BYE NINTENDO HELLO NEW SONY ERA!!!!!11 WAIT WHAT!!!!???!??!?!?!?!11 IT ALREDY WAS SONY ERA!?!?!?! :OOOOOO!??!?!?!!!!111 SUCK ON DAT NINTENDOFAGS!!!111

    1. Here’s some suggestions for you:

      Get off the internet. NOW.
      Learn to spell.
      And get a friggin’ life.

      1. HAHAHAHA U JELLY CUS I BOGHT BETER CONSULE DAN U?????!!!1 HAHAHAH UR A NINTENDO LOSER!!!!!11 STFU AND GO AND PLAY GAY MERIO AND GAY ZELDA!!!!11

        1. “U Jelly”?

          I’d tell you to go back to /v/, but we don’t want your kind there. Go swim in the cesspool of /b/.

          1. WNT TO KNOW ABOUT TROLING?
            NINTENDO IZ TROLIN!!!11 WHY???!!1 CUS IT SELS BETER DAN OTHERS WITH SHITY GAMES LIKE MERIO AND ZELDA!!!11…. OH WAIT IT DOSNT SEL BETER NOW???!!!1 AND WIL DISAPEAR???!!!!1 FUK U NINTENDOFAGS FOR PLAYING CASUAL SHITY GAMES, NO IS UR CHANGE TO BECOM A HARDCORE GAMER AND BUY A PS3!!!!!11 TRUST ME IM A EXPERIENCED GAMER!!!1

            1. LEARN to SPELL!! Yeesh!! I shall not and will not take you seriously until you spell at least 90% words correctly.

              Misspelled words: about 12 (including contractions [not counting grammar, random 1’s, or how change is “supposed” to be “chance”])
              Total words: About 59 (based on word count from Microsoft Word).

              Your score: About 20% of your comment is incorrectly spelled.
              Rank: Bad Speller

              1. Wow what a retard, you actually took that much time to answer a troll like me? You should get a life man, I’m serious. Even copyed and pasted on Microsoft Word lol to see how many words it had, and counted the bad sepelled ones! LOL If you were that smart as you try to seem, you would’ve seen that I’m a troll and I’m not worth your attention. Thank you, try again.

                  1. Because it’s fun? You should try it sometime. Like, this one time, I went to a Twilight forum, and really stirred up a lot of s*** with the users there. (Mostly pre-teen girls anyway. Soooo easy to troll, and hilarious to read reactions from. :P)

                    1. I troll the michele bachmann page on Fb, but thats because they’re racists and insane. 45% of them “talk to god.” Lol. I just dont get trolling this site in the manner in which ps4 does it.

                    2. Aw, come on man. They’re passionate about twilight the same way we are about Nintendo. I wish people would understand that people have extremely varying preferences.it’s shit like this that makes me never let anyone look at the music on my iPod, because the first thing they do is judge me because I listen to something they consider “gay”

                1. Actually it only takes a few minutes to make a back sass remark :P. Also you can’t use the same joke against someone, that’s like….Middle School stuff. (And yes this is directed to your ‘serious’ comment).

            2. I have a PS3 and Wii and 3DS and I peffer the Wii & 3DS personaly.

              I’m a hardcore gamer, Zelda is hardcore & I play the exclusives on my PS3 like Just Cause 2.

              I kick ass on COD & games. Learn to Spell! Wait until Wii U comes out it will kick ass against your PS3.

      2. Dont respond. Nobody respond to this guy. He’s clearly excited about discovering this site, it makes it easy for him to find people to anger.

        1. U NINTENDO FANBOYS NINTENDO DICK LIKERS ANGER ME FIRST!!!!11 UR ALL TROLS, AND NO NOTHING ABOUT TRU GAMING U AL NINTENDO GAMERS SHULD GET OF GAMING AND LET THE PROS PLAY SUCH AS SONY PLAYERS!!!111

    2. were your parents siblings or something?? Im just getting that vibe from you. Sony cant come up with any ideas of their own, basically they are still in business because Nintendo is. Sony’s “new and amazing ideas” came from Nintendo’s original amazing ideas! without Nintendo your pathetic Sony wouldn’t even have an analog stick! You know why because Nintendo came up with the idea and made the first one and guess what, Sony copied a year or two after that. If Nintendo ever did go bankrupt Which they wont, Sony would be so lost and disorientated, it would be like trying to paddle a boat up stream with no paddle. Just to summarize this Sony’s got nothing on Nintendo. btw go back to grade one and learn how to spell ‘Already’

      1. Microsoft copies sony, and sony copies nintendo.

        Look at Sonys original eye-toy. Microsoft copied the Eye-toy

        Look at the Wii motes. Sony copied that.

      2. the vectrex was the first to use the anolog stick, so unless nintendo owned it, they werent the first, therfore didnt come up with the idea, but just like apple did with the touch screens, they made it comercially popular. I still dont think the ps3 is better than the wii, or the other way around either.

        1. Yeah, but that was slightly different. I mean, you had touch screens on things like palmpilots for years before the Iphone, or the DS, but it takes skill in execution that changes entire markets.

  12. His prediction is about five years too late, but Prachter is finally correct. For someone who is wrong so often, he sure likes to belabor the point on the rare occasion when he’s right.

  13. When has anyone ever predicted the market accurately? They were wrong about the ds, they were wrong about the wii. Doubting nintendo is pointless now, they’ve proven themselves countless times and 2012 is time for them to take back the battle. Im more excited for the wiiU than anything else in my entire 12yrs of gaming!

  14. The blue ocean strategy is flawed. You can never make your opposition completely irrelevant, even when you you get close, they can always copy what you do which is the most common counter.
    Don’t agree? I point you towards the Wii and the Kinnect and the Playstation Move (ignoring the Eye Toy, Dance Dance Revolution and other such commodities).
    They have never fully been in a position of the Blue Ocean strategy. This strategy of ““blue oceans” of uncontested market space ripe for growth” is impossible.
    Pachter I would suspect knows this and is possibly hinting at it as well.

    1. That’s the idea. They’re supposed to copy it, especially if it ends up working. That way, most of the problems Nintendo had faced, MS and Sony would have to face as well. Which they are.

  15. Why do people even listen to Pachter, considering his track record is absolutely terrible (I distinctly recall an article showing how he got more than half his predictions wrong) and that he’s honestly better to think the opposite of most of the time (as in, whenever he’s being negative about something, celebrate, whenever not, panic)

    He’s probably also wrong about the blue ocean comment, but oh well.

  16. I think they are gonna definatly make money on Mario 3d, Mario Kart 7 and Skyward Sword…. and probably a lot others im just failing to remember at the moment. It may not be enough to completly cover their losses… but they will definatly make a good chunk of change this holiday season,

  17. Yeah there’s room in the video game market for the current market leader. Nice observation.

    What a milksop.

  18. Shut up Pachter!!! Just kidding. You do seem to have a love-hate relationship with Nintendo. Is that you love to hate them Pacter or do you hate to love them?

  19. Am I the only one who can’t wait for the Wii U’s home menu? I need to see how that thing looks O_O

  20. I know this has probably been said many times over, but how is this Nintendo News? Please stop posting about how pessimistic people “feel” about Nintendo and stick to the old formula of breaking updates regarding Nintendo as a company, whether it be hardware, software, etc.

    Normally, I wouldn’t rant like this about a blog, but because I follow you on twitter, it’s getting really old really fast seeing an “analyst” opinion about how they think the 3DS or the Wii U will run the company into the ground. Only time can tell. No one expected the global phenomenon that was Wii, so we’ll just have to wait it out.

    We all follow this blog / twitter because we love Nintendo. So please stop reporting these types of “news”. Not a threat, just informing: if this is the new format of MyNintendoNews, you may lose one of your thousands of followers.

    Thank you.

    1. Linking 3ds eshop to pc! Nintendos catching on to this thing called the internet. This just proves that nintendo is learning from their mistakes!!

  21. It’s funny how everyone is nintendo this and nintendo that. If you think about it sony just started making money off of ps3 sales. Microsoft, whose xbox had a year start on both consoles just started making money.
    Nintendo had two systems that didn’t outsell the ps2,xbox, and ps1 but they hit a homerun with the wii.
    We already know the wii u is going to be great developers have no reason to not make games for it so it’ll sale especially in america. All we need to do is sit back and hope the only thing nintendo does is what they have always done because pound for pound they are good at what they do. Also remember this blue ocean basically meant be different if nintendo has the right advertisement in place the wii u will will sell like crazy.

    1. It’s okay for me because I know that Nintendo has many followers as xbox or ps2. Why? Because they are the hardcore in the gaming industry and kids will not forget about them even for the coming generations. I just hope that the Wii U release will be sooner than June 2012. Can’t wait to take the best curve of that new treat!

  22. hello!,I like your writing so much! percentage we keep in touch extra approximately your post on AOL? I need an expert on this house to resolve my problem. May be that’s you! Looking forward to peer you.

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