Peter Molyneux says Nintendo is one hardware release away from leading the way in games again.
Speaking to IGN, the industry veteran and 22Cans founder said the company may have lost its way with the clunky Wii U, but it was probably already working a new system to reverse its fortunes.
He called Nintendo a "super smart" company and said, as many have in the past, it should never be underestimated.
"The problem with Nintendo is they did a fantastic job of finding these millions of new players with the Wii, and the Wii U kind of does that but also tries to bring in the existing gamers as well, so I think they may have lost their way a bit," he said.
"But they're super smart people, never underestimate Nintendo. They're probably one hardware release away from something that utterly convinces us that they know exactly what the future of games should be.
"I do find the Wii U big, I find it clunky, certainly it's not a sexy piece of hardware."