Pachter warns Wii U will finish a 'distant third' behind PS4 and Xbox One

Wedbush Morgan analyst Michael Pachter says a combination of the Wii U's technical specifications and lack of third-party support will be a challenge for Nintendo.


Wedbush Morgan analyst Michael Pachter has spoken about how he believes Nintendo's Wii U will be unable to compete with the Xbox One and PlayStation 4, and declared that Nintendo's home console will finish a "distant third in this console race."

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"Nintendo's in trouble right now," said Pachter in an interview with ABC News. "Nintendo, I think, waited two years too long to launch a competitive console, you know, a high-definition console with the PS3 and the Xbox 360. I think by the time they did launch a console that stacks up really well, the other two guys passed them by."

Microsoft and Sony will both launch the Xbox One and PlayStation 4 later in 2013, a year after Nintendo launched the Wii U.

Pachter believes the lack of third-party publisher support will also contribute to Nintendo being unable to sell the Wii U to a mass market audience. "The publishers are pretty excited about supporting the Xbox One and the PS4. They really didn't say anything [during E3 2013] about the Wii U."

During E3 2013 Nintendo revealed its suite of first-party Nintendo software for the coming months, including Super Mario 3D World, Mario Kart 8, and The Legend of Zelda: Wind Waker HD.

Nintendo reported in April that sales of the Wii U stood at 3.45 million worldwide, as Nintendo reported a profit of ¥7.09 billion ($71.3m/£46.7m) for the financial year. Nintendo has also said that its 3DS has become the console of choice in Japan.

"We know EA has no games in development for Wii U," added Pachter. "If others follow suit, I mean if you see Activision pull support, if you see Ubisoft, you see Take 2 pull support, the Wii U is a Nintendo-only gaming device, which is the way they were back with the NES in 1985. They're not going to sell a lot of consoles if they don't have games like FIFA, and Battlefield, and Call of Duty, and Grand Theft Auto."

EA said in May that it had no games in development for the Wii U, but has since tried to retract its statement. Ubisoft continues to support the machine.

"I think [Nintendo] are at the bottom of a huge mountain with a huge uphill climb," said Pachter. "I don't think they're going to get that mojo back. I think these two guys are passing them by. And this PS4, priced $50 more than the Wii U, why would anybody buy a Wii U? Unless they just have to play Nintendo games. I think the way it actually shakes out is anybody who buys a Wii U that really is a hardcore gamer is going to buy an PS4 or an Xbox One in addition, so they can play those third-party titles they love. So I think Nintendo becomes a distant third in this console race."

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