Pachter: Nintendo Should "Consider Getting Out of the Wii U Business"

[StewShearerOld]

Pachter: Nintendo Should "Consider Getting Out of the Wii U Business"

[tweet t=https://twitter.com/michaelpachter/statuses/424186039255580672]

Analyst Michael Pachter believes Nintendo should go back to the drawing board and takes its games multiplatform "until they release a new console."

Nintendo had to admit to some <a href=http://www.escapistmagazine.com/news/view/131419-Nintendo-Makes-Major-Reductions-in-Wii-U-3DS-Sales-Projections>rough truths today, substantially reducing its sales projections for both the Wii U and 3DS for fiscal year 2013. In light of this development many came out with opinions regarding Nintendo's course forward and the steps it needs to take to salvage what increasingly appears to be a hopeless Wii U. Among them was analyst Michael Pachter who suggested that Nintendo's software might do better if it were released from the constraints of its poorly selling hardware. "Nintendo software is still great," he said <a href=https://twitter.com/michaelpachter/statuses/424186039255580672>in a Tweet. "However, if [software] remains proprietary, sales are limited when they sell fewer [hardware] units."

While it would be easy to take this as Pachter suggesting Nintendo abandon hardware altogether, he would suggest a more moderate approach for the company. "I don't think Nintendo should exit the hardware business at all," he said. "Rather, I think they should consider getting out of the Wii U business, and consider going back to the drawing board on consoles. They have a console in the marketplace that isn't working, and if they continue to tilt at windmills, their software sales will suffer."

That being the case, he does believe some short-term multiplatform actions might be a prudent move on the company's part. "Obviously, If they discontinue the Wii U, they will sell no console software," he said. "I think they should reconsider going multiplatform until they release a new console, then they can pull all of their software from the PS4 and Xbox One, and go back to being a proprietary software maker."

In the case of the 3DS's failure to meet expectations, things are "more complicated." According to Pachter, the rise of mobile and tablet games has damaged Nintendo's dominance of portable gaming in a way "they will have trouble getting back." In turn, he thinks the company should embrace the new mobile market by "Placing GBA games on those platforms for paid download ($4.99 - 9.99) and developing a broader audience." Newly hooked Nintendo fans could, in turn, be convinced to "buy a 3DS and more expensive games."

In the least, Nintendo's recent bad news is making it clearer and clearer that the company can't continue on in the fashion it has been. While the rampant success of the Wii has given it some definite leeway, it's still a business and can't enjoy these sorts of failures. What remains to be seen is where it tries to go from here and, in turn, where it winds up as a result. Maybe it will follow suggestions from people like Michael Pachter. Looking at Nintendo's recent history though, we can see it trying a solution all its own.




Permalink

 

[WeepingAngels]

I think it would be a bad idea to go multiplatform and then go back to being exclusive in a few years.

 

[Baresark]

I hate to agree with this jackass... but I kind of feel the same way. They can release their games multiplatform (home console, not necessarily handheld where they are the most successful by many orders of magnitude), they can then bring in the money and make plans for a new console that is more in line with what consumers want.

On the other hand... he basically says that Nintendo should avoid 3DS support and port existing games to mobile platforms... which is a fuckin' horrible idea.

 

[Dragonbums]

This title should just be renamed to "Pachter makes a "prediction" that has striking similarities to the comments seen on your average news article.

 

[Casual Shinji]

Now they're having to compete, not just for sales, but for developers, with the next-gen consoles of Microsoft and Sony.. and those consoles are closer to PCs from my understanding, so easier to develop for.

I think the real problem isn't that the PS4 and Xbone are easier to develop for, but that they're easy to port between. They're more or less the same system, while the Wii-U is drastically different. Which makes porting third-party titles to the system way more time and money consuming, making it not worth it for them.

Anyway, Nintendo going third-party would be a disaster. They've built up the legacy they have because they operate within their own little realm, generally ignoring the rest of the industry. This now seems to be biting them in the ass in terms of third-party support, but actually going third-party would most likely mean squandering that iconic indentity.

 

[Insideout Ink Demon]

Who the hell would buy a Nintendo console in the future if the drop Wii U support in under 2 years.

 

[xaszatm]

This title should just be renamed to "Pachter makes a "prediction" that has striking similarities to the comments seen on your average news article.

I'd suggested a drinking game for every time Patcher makes a "prediction" but I'd die of alcohol poisoning.

OT: Seriously, why do we listen to this hack again? Here, I'll make a prediction: Nintendo will be just fine. Do I get news article based on my accuracy?

 

[CriticalMiss]

This title should just be renamed to "Pachter makes a "prediction" that has striking similarities to the comments seen on your average news article.

I think Pachter is the name of a mysterious AI that trawls the internet, determines an opinion based on those comments and publishes it as some kind of enlightened prediction!

I would actually buy a few GBA games if they had a decent PC port. Final Fantasy Tactics Advance was quite fun and one of the few GBA games I bothered to play through more than once after completion. Whilst I could go and rummage through cupboards for my possibly still working GBA and cartridges I don't mind dropping a few quid on a PC version. Same goes for some other old Gameboy games. But no, Nintendo and PC shall never meet again!

 

[Covarr]

No, Pachter. That's not what they need to do.

Six steps to save the Wii U:

• 
  [li]More games - They're making progress on this front, but the I think the turning point will be Mario Kart 8.[/li]
  [li]Better marketing - I recently saw an ad on TV that explained that the Wii U isn't just an add-on. They should've been doing this type of ad all along, and they should've been advertising a lot more.[/li]
  [li]Better bundles - For now New Super Mario Bros. is okay (Nintendo Land was always a bad choice), but before holiday 2014 season, they need to start bundling Super Smash Bros or Mario Kart 8.[/li]
  [li]Stop selling the Wii - This is contributing to consumer confusion. Introducing a new model of Wii (the Wii Mini) after launching the Wii U was a colossal mistake. Continuing to sell either version of the Wii is a bigger one. Both the Wii and the Wii Mini need to be ditched ASAP in order for the Wii U to ever gain any real traction.[/li]
  [li]Stop ignoring franchises - We want a new Star Fox game that builds on the foundation set by the first two (think Assault, but actually make a complete game this time). We want a new F-Zero game at all. A new Puzzle League game would be nice, if it can find a big enough audience (maybe rebranded as a Luigi game?). A new Wars game would be a fantastic fit for the Wii U's gamepad.[/li]
  [li]VIRTUAL CONSOLE - Seriously, they've got a huge backlog of games, a fair few people who would be quite willing to re-purchase them, and very little cost in rereleasing them compared to new games. When the Wii was young, I used to get excited to see what new Virtual Console games would come out every week. It was a fantastic hype builder, and helped keep people's minds where you wanted them. It got regular features on quite a few gaming news sites (read: free advertising).[/li]

The Wii U doesn't have to die. It can be made profitable. But Nintendo really needs to look at why it's failing and fix those problems before that can possibly happen. If something isn't working, the solution isn't do the same thing but more of it. Once Nintendo gets that figured out, I think the Wii U perform do acceptably.

P.S. Thanks

 

[Supernova1138]

I guess we'll have to see how the Wii U does after this year. If new Mario Kart and new Smash Bros can't move the console, then nothing will. If the Wii U is still down in the dumps by the start of next year, then Nintendo maybe should consider going back to the drawing board and cut the Wii U's lifespan short.

 

[Klonoa Prower]

Welp, seeing as I own a Wii U and neither a PS4 or a X Box one... and I consistently play it, I shall ignore this article hence forth.

 

[xaszatm]

He's just saying what a lot of people are thinking, and also saying. Send all checks by mail.

I'd love it if Nintendo went multiplat. Their hardware is shitty and holding their games back. Metroid on PC or Pokemon on Android could really thrive. Instead they're the big fish in a tiny pond that no one is buying.

Because $40.00 games on mobile devices sell like hotcakes, right? Pokemon on mobile devices would have to rely on different proceeding in order to make a profit. Like pay to play or DLC. Would you really want that in a pokemon game?

 

[rasputin0009]

And this explains why people who have intelligence don't listen to Patcher.

I listen to Pachter because he has more knowledge of the business side of the gaming industry than the regular Joe gaming "journalists". You seem to forget that Pachter is just putting out suggestions on how to maximize revenue. And he's not wrong. Ditching the Wii U is probably the best decision Nintendo could make since they screwed it up so hard already (calling it the Wii U was a big no-no).

Just more horsepower? Does anybody really think that would be enough?

Yes, that would be enough (see: fanboy wars about CoD's native resolution on Xbox One compared to PS4). The Wii U's CPU is so significantly under-powered that it's excruciatingly time-consuming to develop for ( http://www.eurogamer.net/articles/digitalfoundry-2014-secret-developers-wii-u-the-inside-story ). If it costs a fuck-ton to develop for the Wii U and the product is comparatively shit to other platforms' versions, then why would third-party's develop for it? And why would you buy a Wii U if there's no software? Nintendo sure as hell isn't supporting it enough, and they most likely won't be able to catch up. Unless they have the most ground-breaking Zelda game ever that's worth buying a $300 machine to play, the Wii U is going to be a money-sink for Nintendo.

 

[VG_Addict]

And this explains why people who have intelligence don't listen to Patcher.

I listen to Pachter because he has more knowledge of the business side of the gaming industry than the regular Joe gaming "journalists". You seem to forget that Pachter is just putting out suggestions on how to maximize revenue. And he's not wrong. Ditching the Wii U is probably the best decision Nintendo could make since they screwed it up so hard already (calling it the Wii U was a big no-no).

Just more horsepower? Does anybody really think that would be enough?

Yes, that would be enough (see: fanboy wars about CoD's native resolution on Xbox One compared to PS4). The Wii U's CPU is so significantly under-powered that it's excruciatingly time-consuming to develop for ( http://www.eurogamer.net/articles/digitalfoundry-2014-secret-developers-wii-u-the-inside-story ). If it costs a fuck-ton to develop for the Wii U and the product is comparatively shit to other platforms' versions, then why would third-party's develop for it? And why would you buy a Wii U if there's no software? Nintendo sure as hell isn't supporting it enough, and they most likely won't be able to catch up. Unless they have the most ground-breaking Zelda game ever that's worth buying a $300 machine to play, the Wii U is going to be a money-sink for Nintendo.

Except ditching the Wii U would piss off the 5 million people who bought it, and the few devs who ARE making games for it. You don't think 5 million is a lot? Trust me, that's more than enough to make an impact in Nintendo's consumer base.

Also, people tend to ignore Pachter because his predictions have been wrong more often than they've been right.

 

[Redhawkmillenium]

Michael Pachter has mentioned on his Pach-Attack show that he doesn't "get" Nintendo (and he doesn't really get Japanese companies in general). I think that's pretty obvious here. Discontinuing the Wii U and making its games multiplatform is the worst thing they could do as a hardware designer, IMO. Nintendo has been through periods of wavering hardware sales before (GameCube) and they pulled through. And what kept them afloat was their first-party titles. The Wii U has been a mistake, yes, and with the release of the PS4 and the XB1 there's likely little chance of recovering from it. So make the Wii U's life cycle short and come back with a real console next time. Don't open the multiplatform door -- it'll be hard to close up again.

As for the 3DS and putting old games on third party mobile platforms...I don't know. GBA games are valuable IP that's doing a whole lot of nothing since the 3DS Virtual Console doesn't have GBA games and no one's buying a Wii U for GBA games. I think it might be a good idea for Nintendo to swallow its pride and release older games, GBA games at least, on mobile phones. At least the situation with the 3DS isn't as dire as the Wii U.

 

[Redhawkmillenium]

Double post, sorry...

 

[Hairless Mammoth]

As much as I'd rather play the next Zelda or Metroid in above 1080p at 60 fps on my pc or blow my money on one of those locked PCs MS and Sony just came out with, Nintendo's top brass would rather commit sepukku compared to pay out royalities to either Microsoft or Sony. Pacther should consider a gag ball ever so often. He's either stated the obvious so late shareholders listening to him are probably losing money if they aren't paying attention to their volatile stocks Pachter isn't advising them on, or he's coming up with the worst business advise this side of telling people to invest in those two new systems out now, you know the CDi with a new Zelda game and the Jaguar, the machine that is 4 times as powerful as an SNES.