Nintendo warned investors today that they would not be making their targeted sales figures for the Wii U. The company slashed their outlook for the year by nearly 70%, and the company has been getting plenty of advice from the internet as to which path they should take.
Nintendo should consider getting out of the Wii U business, says Pachter
Outspoken analyst, Michael Pachter, believes that Nintendo should abandon the Wii U altogether.
“Nintendo’s proprietary software continues to be first rate, but its console hardware is not competitive; the Wii U is under-powered relative to next generation offerings from Sony and Microsoft, and is not competitively priced (priced similar to current generation offerings from the competition). We don’t think Nintendo should exit the console hardware business, but think it should consider getting out of the Wii U business, and consider going back to the drawing board on consoles. Nintendo has a console in the marketplace that isn’t working, and if it continues to tilt at windmills, its software sales will suffer.”
But if Nintendo does decide to discontinue their support of the Wii U, it would devastating to both their fan base who purchased the console, and they wouldn’t sell anymore software. Pachter believes the solution to one of these problems is to put their new software on the Xbox One and PS4 until they get a competitive console to market.
“Under its current business model, if Nintendo discontinued the Wii U, it would sell no console software. We believe that it should reconsider its ‘all proprietary, all the time’ model, and should consider making its proprietary console software available on other platforms until it is able to release a new console. Once Nintendo has a new console on the market, we think it would make sense for the company to pull all of its software from the PS4 and Xbox One, and go back to being a proprietary software maker. In the meantime, we believe that the company has a problem that it is not acknowledging or addressing,” said Pachter in his recent note to investors.
What say you reader? Should Nintendo go back to the drawing board on the Wii U and push its software to the PlayStation and Xbox?