Nintendo Losing Credibility In Console Wars?
Is Nintendo losing its stake in the console wars?
With Microsoft likely pushing hard to release a comparable system after Sony’s PlayStation 4 event, and Valve pushing the Steam Box, where is Nintendo in all this? The Wii U isn’t selling as well as we had expected, bringing back the days of the N64 and Virtual Boy. Plus, with Shigeru Miyamoto preparing Nintendo for his retirement, the company that brought videogames back after the crash in the ’80s could be in jeopardy.
Michael Pachter of Wedbush Securities received a tweet about this and posted a video on GameTrailers explaining his view of Nintendo’s possible demise:
“Our next question from Twitter is from @barryscottclark … ‘Mr. Pachter, do you ever see Nintendo going the way of Sega and having to exit the console making business?’ Having to? No, never. Wanting to, not while their biggest shareholder is Mr. Yamauchi, who I believe is around 70, 71 years old, and not while Mr. Iwata is CEO. I think those two guys are deeply rooted in tradition … and what made Nintendo great. And I think that the Nintendo formula for success for the last 35 years has been; manufacture console, sell it at a profit, and support console sales with proprietary software. And then when your console sells well, collect royalties from third parties for the privilege of putting their software on the console. I think that model is broken for Nintendo. I think that Nintendo is no longer able to compete the way they did in the past and sell their consoles at a big profit. I think that the Wii, when it first launched, they were probably making about a hundred dollars profit per unit. I think the DS, when it was first launched, was probably generating about 50 dollars profit per unit. The 3DS, I think is barely making a profit, the Wii U is barely making a profit, we’re talking five or ten bucks per unit. So Nintendo’s hardware profits are so low that it really doesn’t make sense for them to be in a hardware business. But I don’t think they realize that yet.”
The rest of Michael Pachter’s response is in the video below.
What do you think? Is Nintendo losing its stake in the console wars?
@michaelpachter @rohanlikespants Mr. Pachter, do you ever see Nintendo going the way of Sega and having to exit the console making business?
— Barry Clark (@barryscottclark) February 2, 2013
Tags : console wars, credibility, losing its stake, nintendo, profit, wii u
Posted: March 10, 2013
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Mar 10, 2013
Pather is a nobody, he said he is a game analyst but he is nobody this industry does not have this kind of people, just because they are in other business he just come and say "I am a game analyst".
Nintendo has the best sold portable ever, the best sold game ever, the best console sold ever, they are not going anywhere any time, Patcher always talks about nintendo he does not know anything.
The only ones the lost money are microsoft with the kinect, Sony with the ps3, now they are starting to make money just when the new generation started, and there is not console wars nintendo tries to approach a different market not the same one as sony and microsoft, this is the reason the wii and ds sold so good, Patcher said the 3ds was not going to sell lol it just old 30 millions.
They always say this since the time of the gamecube, while they don't see nintendo is the father of gaming.
Mar 11, 2013
You're right. I cannot allow Nintendo Wii U fail right now!
Mar 11, 2013
First, the Wii U has already outsold the Virtual Boy, which didn't even reach 1 million units worldwide. Second, the Wii U won't be able to be compared to the Wii truly, because the Wii was so revolutionary, that it expanded the market beyond the 10-34 core demographic. The U is building off the Wii, just like the Advance did the Game Boy name. The Advance didn't sell nearly as many as the Game Boy/Color did, so is it also a failure? It is just like this. I place this things lifetime sales, just as prediction, between NES and Wii. Not truly sure it will cross 100 million like the Wii is about to do, but given name recognition, it should sell 30 to 50 million worldwide easy, especially when the skyhigh price comes down.
Mar 11, 2013
You can't count portable and console together, the DS is either console or portable, but not both. The PS2 is the top console, the DS is the top handheld.
Mar 11, 2013
Is the Inquisitr loosing credibility in the troll war? pffffff