Nintendo Won't Return to Profit Says Pachter
The company's current strategy dooms it to failure
Analyst Michael Pachter, who recently noted that Nintendo is in 'disarray' has now stated that the company will not return to profitability unless it radically changes it video games strategy.
As any serious analyst would do, Pachter went to NeoGaf to defend advice he has given to his investors regarding Nintendo. He pointed out that, “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.
He did, however, remember his investors and stated, “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.”
NeoGaf via MCV
As any serious analyst would do, Pachter went to NeoGaf to defend advice he has given to his investors regarding Nintendo. He pointed out that, “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.
He did, however, remember his investors and stated, “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.”
NeoGaf via MCV
Companies:
Nintendo
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Comments
deleted 27 Feb 2012 16:24
1/6
Is this the turning point? always room for 3 home consoles, no more and no less, will Nintendo fail where apple will enter?
Mike 27 Feb 2012 20:27
2/6
They have to become a console gamers "have" to buy. How do you do that, EXCLUSIVITY. That has to be more than just the kiddie "Mario" market.
If they owned Take-Two's IPs that would be a good start. Want to play GTAV, then you have to own the Wii-U.
If they owned Take-Two's IPs that would be a good start. Want to play GTAV, then you have to own the Wii-U.
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gingineer 27 Feb 2012 23:41
3/6
people said the same thing about nintendo after the gamecube before the wii. regarding the handheld market, I contest his point that it will loose half its user base. smart phones with apps are not for kids. Nintendo DS's are very much for kids (and adults) the kids market will stay strong for them.
Ryan 28 Feb 2012 03:42
4/6
the DS is the most successful handheld of all time, how is the handheld market suffering or declining when the 3ds is selling faster in its first 14 months than the DS did.. he talks utter nonsense.
brilliant time to buy nintendo stock as after its announcements at e3 with its new media partnerships and game line up's its going to go up up up.. really one time loses and everyone thinks its the end of nintendo. It has enough money in its reservers to survive wii u failing and its next console.
brilliant time to buy nintendo stock as after its announcements at e3 with its new media partnerships and game line up's its going to go up up up.. really one time loses and everyone thinks its the end of nintendo. It has enough money in its reservers to survive wii u failing and its next console.
John 28 Feb 2012 06:12
5/6
This guy has been wrong so many times with his stock predictions. He claimed the wii would put Nintendo out of business. He claimed the ds would put Nintendo out of business. I also recall him saying the PS3 would trump the 360 and that the psp would obliterate handheld records. This guy is an abysmal failure of an analyst and no report that his his 'predictions' will ever be true journalism if you don't point out his almost legendary aptitude for getting this completely wrong. What an asshat.
fishsticks 28 Feb 2012 12:58
6/6
If you want a good laugh, do a search on Spong for 'Pachter'
Kinect will cost $50
Wii HD and the sequel to the DS will be released in Autumn 2010
A PVR Xbox360 in 2010
I'm half tempted to make some sort of random Pachter statement generator.
Microsoft/Sony/Nintendo to release/cancel a 3D/HD/hologram/cheaper Xbox/Playstation/Wii by *random date*
Kinect will cost $50
Wii HD and the sequel to the DS will be released in Autumn 2010
A PVR Xbox360 in 2010
I'm half tempted to make some sort of random Pachter statement generator.
Microsoft/Sony/Nintendo to release/cancel a 3D/HD/hologram/cheaper Xbox/Playstation/Wii by *random date*