Pachter: Nintendo risking market share loss

michael-pachter

Nintendo must reinvigorate sales of their Wii U or face a drastic loss of market share this console generation, Wedbush Securities analyst Michael Pachter has warned.

“We believe the Wii U release slate on display will be a key determinant of the console’s long-term staying power,” Pachter explained within a pre-E3 2013 research note.

“With the more powerful PS4 and Xbox One launching later this year, Nintendo risks losing additional share to its console competitors if the quality and volume of content available for Wii U does not pick up markedly in the near-term.”

If they remain unable to draw more consumers towards their hardware, the company will also risk losing key third-party support at a time when they need it most.

He continues, “In addition, if the Wii U’s popularity does not improve by the end of the year, many third-party publishers may pass on producing games for the console.

“We note that EA recently announced that it had no Wii U games in development, and it remains a possibility that the publisher will abandon the platform entirely. Should other third parties follow EA’s lead, the Wii U could be relegated to a first party only platform.

“We expect the Wii U release slate on display at E3 to be very first-party-centric, with limited third-party support coming from Activision Blizzard, Warner Bros., and Ubisoft, among others.”

[Thanks GoNintendo]

Written by
After starting out with a Yellow Game Boy and a copy of Donkey Kong Land, Alex once hid in his room to play The Legend of Zelda: Ocarina of Time one Christmas. Now he shares his thoughts on Nintendo Insider, keeping track of everything to do with Nintendo.

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