Famed Wedbush Morgan analyst Michael Pachter has attacked the handheld market in the latest edition of his show, Pach-Attack. Pachter admits that Nintendo owns the handheld market and that’s one of the reasons why Microsoft hasn’t released a handheld gaming device. Pachter also says that while the PlayStation Vita is a great piece of hardware he believes that the device is a bit of a joke as third-party developers just aren’t supporting the system.
“The reason is that the handheld market sucks, and to the extend there is a handheld market and Nintendo owns it.”
“The Vita is a joke. It’s a wonderful, wonderful, wonderful piece of hardware and nobody owns one. The reason nobody owns one is It’s too good, It does too much. Developers aren’t making games for it because the market is too small.”
“You’re not going to get a big install base with the Vita at this price, and even though It’s a really slick device, if there is not a lot of people who own it, you’re not going to get a lot of sotfware. And It’s a vicious cycle, if you don’t have software, you’re not going to buy the Vita. If you don’t have Vitas, you’re not going to get software. So, the Vita sucks, Sony has no prayer of making money on the Vita.”
“The handheld market is not as big as It used to be. With the 3DS I think Nintendo is probably going to continue to do ok, 15 million a year, that’s a nice market for handhelds. With the Vita on the market, they (Sony) are going to make 5 million a year, why do we need a third (handheld)? All that would happened is that demand of 20 million handhelds will get split three ways instead of two. Nobody makes money selling five millions units a year.”