Michael Pachter Bashes Nintendo; Expects PS4 To Best Xbox One

Dec 6, 2013 by  

Pachter Bashes Nintendo And End of Consoles

All of us make bold predictions about video games in our off time, but none of them are quite as public as Michael Pachter. The Wedbush Securities games industry analyst has become a well-known voice in the gaming community for his predictions about the industry, be that for good or for ill. Of late, Pachter has been making negative assertions about Nintendo and the Japanese corporation’s business model. It is not hard to see where those claims come as it’s no secret that the Wii U is struggling to attract new buyers and meet its sales targets.

In the past, Pachter suggested that Nintendo is in so much trouble with the Wii U that it should get out of the hardware business before the company ends up “Dreamcasting” itself. But his concerns for the big N don’t stop there.

Pachter isn’t done bashing Nintendo, its leadership and recent business practices. GamesIndustry International reports that at the Game Monetization USA Summit in San Francisco, Pachter went as far as to call out Nintendo President Satoru Iwata directly.

“I don’t know why Iwata [Nintendo CEO] is still employed”

Pachter called the Wii U‘s performance “underwhelming” (Nintendo is still losing money on it) and continued with his own suggestion about how Nintendo should penetrate the mobile market. The analyst proposes that because handheld console markets are shrinking, the company should move onto smartphones and tablets by offering classic GameBoy Advanced games for free and charging $3-$5 for more recent DS games. Pachter suggests that this would generate millions of new fans that may buy into Nintendo’s brands.

Pachter Suggests End Of Consoles

While Pachter is not very optimistic about the Wii U’s chances going forward, he is mildly more positive about the other current generation consoles, in particular Sony‘s. Pachter praised the PlayStation 4‘s hardware which he believes has the potential to provide killer experiences going forward. He predicts a bright future for the PlayStation 4 and expects it to sell 100-120 million units worldwide over its entire life time, with the Xbox One lagging slightly behind with 90-110 million units. The difference Pachter explains, is quite simple.

“Microsoft loses the next generation unless they cut price. If Microsoft drops its price to $399, I expect the sales to be equal to the PS4.”

Despite predicting comparable sales numbers for new generation consoles when measured against previous generations, he thinks that this console rotation will end up being the last. Instead he envisions “frequent model updates instead of new consoles.” He also thinks that the re-emergence of the PC will have a hand to play in the downfall of the console market. He suggests that with smartphones’ help, PCs will become a “hub” for all screens around a person’s house, be it for entertainment, social or work purposes.

While it’s perhaps extreme to suggest firing one of the men responsible for the Wii and 3DS‘ successes, that isn’t to say that Pachter’s claims don’t hold water. It isn’t the first time that the industry has predicted the end of consoles or that PCs are on the rise to challenge their living room counterparts. 

Michael Pachter is throwimg a lot of darts at the board here, but do you think any will stick? Is Nintendo doomed or can it recover from the low Wii U sales? Would it increase its market if it got into tablets? Can it really be the beginning of the end for traditional gaming consoles? Will the PC come to challenge the  consoles? Where do Valve’s Steam Machines fit into all of this? Let us know below.

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Source: GI.biz

19 Comments

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  1. I don’t know why Michael Pachter (chicken head cutter) is still employed.

    • Well for one the dude for the most part is pretty accurate(outside of gaming anyway) so that could be one of the reasons. Plus he is self employed in one company…if you were actually looking for an answer.

      • This is the guy that said that Dragon Age 2 was going to sell like 5 million copies. I wasn’t looking for answer but thanks for one anyway.

  2. honestly im a PC person and can’t wait for the steam machine to release. but if i would have to make an educated guess on his POV… he’s compleatly wrong. i work at a gamestop we were sold out of xbox one’s within 4 hours of them going up for preorder. and since launch we have had to restock twice and we are sold out again waiting for more. my store has xbox one on back order for over 200 people where as our ps4 stock has ran out only once and we still today have over 80 more in the back room. xbox one is (atleast in my town) sold three times as many units as the ps4 and its not just gamers that are buying them familys, the elderly, the local school district ordered several to use in the schools what for idk but they did. Microsoft is not just targeting gamers with xbox one and it is not a game console and was never intended to be. its an all in one full entertainment system that is meant for all be ye gamer or not. they now have a larger audiance that sony’s PS4 can’t touch. so xbox one will win and is doing so now as far as im aware

    • I work at an F.Y.E. and we have sold out of Ones 4 times while only selling out of the PS4 once, but we have sold more PS4s. The difference is Sony shipped us a larger order of PS4s while Microsoft only sent half a pallet. I would say we got 3 times the PS4s with the first shipment than we did Ones. We didn’t get enough Ones to fill our pre-orders and had some PS4s left over, despite having way more pre-orders for them.

    • I think your shoveling a bunch of BS. You are either a MS employee or fanboy. The PS4 is sold out EVERYWHERE whereas the Xbox can still be found at Wal-Mart, Target etc. There was a write up about this on IGN last week how Microsoft claiming they are selling units faster than they can make then was a stretch considering multiple reports say you can still walk into stores and purchase one. I think Xbox is going to have a really hard time staying in this race the longer it goes quite simply because the system isn’t as strong as PS4, Sony has more first party game, and the PS4 is cheaper. PS4will be what the PS2 was for Sony, that’s a huge success and market dominator.

      • I agree with Mike. I also work at a Gamestop and when we had the consoles on sale on Black friday PS4 immediately sold out within the first half hour at midnight, whereas the XB1 didn’t sell out until the mid afternoon and only because people were looking for PS4. It felt really awkward when we were giving tickets to people in line for the consoles we had physically in the store and when we called out XB1 only three people raised their hands out of at least 40 in line.

        • I’ve seen people pretend to be a Marine, fake Navy Seals, people say they are in the FBI, people who claim to be rich, or be a CEO to some big company, but to lie about working in a Gamestop? I mean, he needs to aim higher man…

    • Yeah complete bs I’m a manager at gamestop if you had 80 ps4′s your dm would have come and taken them out of the store to give to stores that could sell them. The company would want to sell through those to get stocked faster so your full of it pal. Ill send you my store number and you can ship all 80 to me if that’s the case because I get dozens of calls each day from people looking for the ps4, and I only get a handful of parents that call about the xbox one each day.

  3. It’s true that Nintendo needs a mobile strategy… Its a huge oversight. But releasing their library wholesale? That’s cannabalism. How well has that worked out for Sega? The Sega Classics Collection was exciting the first time, much less so the twentith time. Patcher may be pointing out a legtimate problem but his proposed solution shows a decided lack of business sense. Nintendo needs to release content for mobile devices that does not compete with their core business and that leads consumers back to the 3DS and Wii U. An app that lets mobile users design rooms for a Wii U Legend of Zelda bonus dugeon is the kind of app that Nintendo needs to put out.

  4. What Nintendo needs is to focus on games. Take some chances, land some new IPs that aren’t thirty years old, and market the hell out of them. I’m a firm believer that games can sell consoles, not so much hardware

  5. Wii U may not be the hottest item at the moment (to most), but you can’t deny the fact that Nintendo rules the handheld market. Sony will NEVER beat them no matter how hard they try with the Vita. So Nintendo will always be around. And yeah you can argue that tablet games are getting pretty popular, especially since they’re a lot cheaper, but they’ll never be on a handheld level.

    All 3 consoled companies have their own strengths and weaknesses.

    • I wouldn’t even put the Vita and the 3DS into the same category honestly. I own both and I play both for entirely different reasons. The 3DS has unique games that you can’t play anywhere else like Pokemon and Animal Crossing while the Vita has higher quality games and can be used in tandem with the PS4.

      The 3DS is definitely a better handheld but I feel the Vita is more of an addition to the PS4.

  6. When does this guy NOT bash Nintendo?? Every time he opens his mouth about gaming it’s about how Nintendo is going to die…

    • When he’s supporting micro-transactions…or sleeping. Which ever one comes first.

  7. he confuses his personal feelings about consoles and pcs for a prediction of how other people will feel. not too bright.

  8. the funniest part is that the WiiU is the best system available.
    The PS4 and XBONE offer the same crap as their last system but with shiny graphics and no backwards compatability.

    • @ Joe lol what?! Please tell me how the WIIU is the best “system” available because of its “game lineup”
      Last I checked game lineup was a personal preference and if that’s yours great but please don’t go around comparing apples to rotten eggs as far as “systems” go the WIIU is a joke that could be built by an intelligent 13 year old in their basement with leftover cellphone parts.

      • Actually, the Wii U is specifically tailored around a certain gaming philosophy. If you have to label any console as being just some parts thrown together (much like a 13 year old would throw together his own PC), it would be xbone first, ps4 second. True, you get high quality parts, but essentially it’s just a PC with a controller.

        But that’s just a fact, and we all know we don’t need facts in discussions.

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