Controversial US analyst Michael Pachter has reiterated his assertion that Nintendo “is in disarray”.
He initially made the claim during a speech at the Ayzenberg A-List Summit 2012. Following the predictable outrage on games forum Neogaf Pachter chimed in to defend his remarks.
“I believe (and please feel free to disagree) that a large portion of the Wii audience comprised casual gamers – those who bought one or two games a year the first two years, then put the Wii aside – and that those casual gamers moved on to another platform,” he wrote.
“At the same time, I believe (again, please feel free to disagree) that the growth of smart phones and tablets has attracted many potential dedicated handheld game customers, and these people also are unlikely to come back to either 3DS or PS Vita.
“I think the addressable market for the Wii U is around half of the market for the Wii, and I think Microsoft and Sony will compete for a portion of that market if the Wii U is priced too high. I think that the dedicated handheld market is permanently impacted by smart phones and tablets, and think that Nintendo's addressable market is probably also half of its former market.
“Nintendo is in disarray because they waited too long to launch the Wii U. They should have, and because they didn't, the decline in Wii and DS hardware and software sales drove them into generating losses.
“I'm paid to advise investors, and none have made a profit owning Nintendo stock. I don't think that many will make a profit over the next few years, because I don't think Nintendo's strategy will return them to profitability.”