The lights are on
Everyone is excited about the Nintendo 3DS handheld, but Wedbush Morgan analyst Michael Pachter is raising questions and fears about the company's long-term strategy in the home console market.
Previously, Pachter believed that Nintendo would be the first of the big three console manufacturers to come out with its next system – even though he thought the next Nintendo system would not stack up technology-wise with the current PS3 and Xbox 360.
Now, in an interview with Industry Gamers, Pachter thinks that Nintendo is too far behind Microsoft and Sony. "With as much respect for Nintendo management as I can muster, I think Nintendo's completely blown it with their second-generation Wii strategy. I think the right strategy would have been to get a second-generation Wii out and keep the old Wii at the same time..."
Pachter thinks that Nintendo's timing is all wrong. "I just think Nintendo's blown it; I think by the time they launch [its next console] if it's Christmas 2011, it's two years too late, and for sure one year too late. So it's over – I don't think they can ever recover." Pachter paints a grim future where a Wii 2 follows the current trend of declining Wii sales, and thinks that the Nintendo's lack of timing puts them in a "damned if you do, damned if you don't" situation. Any new Nintendo console that's either technologically behind or ahead of competitors' consoles will make it hard for third-party publishers to easily support the new system. "If they were going to emulate the 360, which is what I though they'd do, they should have done that in 2009. And if they're going to advance the tech, then 2011 is really not the right year. They're really in between right now."
As judgemental as Pachter sounds, he realizes he's like all of us, and just doing what he can to look into the future. "...Nintendo makes a lot of money, and the management has accomplished a hell of a lot more in their careers than I have. I'm just one guy with an opinion."
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