Note: iOS 9 + Facebook users w/ trouble scrolling: #super sorry# we hope to fix it asap. In the meantime Chrome Mobile is a reach around
hot  /  reviews  /  videos  /  cblogs  /  qposts

Pachter talks more about Nintendo's Wii U 'mistake'

9:30 AM on 02.19.2013 // Jim Sterling
  @JimSterling

Clarifies the company's not in danger, but its glory days may be over

Following yesterday's angry protests from Nintendo fans, industry analyst Michael "Fishy Sunday" Pachter took to NeoGAF to clarify his statements.There was uproar when Pachter said the Wii U was a mistake Nintendo may never recover from, so he attempted to calm nerves by saying yet more things that will probably infuriate Wii U enthusiasts. 

"My comment about the Wii U being a 'mistake' from which the company 'may not recover' was intended to say that if Wii U sales don't materially improve, Nintendo is unlikely to be profitable," he said. "They have around ¥1 trillion (around $11 billion) in cash, so they aren't in danger of going out of business for decades. However, if they aren't profitable, they aren't doing a good job for shareholders.

"Nintendo is ensured high sales of its proprietary software, but it makes the most money on its royalty business, collecting fees from third parties for the privilege of letting them put out games on Nintendo platforms. Publishing (software) revenues peaked at ¥675 billion in FY:09, and are on track to come in around ¥235 billion this year; my call is that if hardware sales don't materially improve above current combined levels, software sales are unlikely to materially grow. If software sales don't materially improve, losses or break even will become the norm. Nintendo will not 'recover' to its formal highly profitable glory."

This sensual bullet of a man believes the Wii U will be far less capable of seducing third parties than the Wii was, especially with its slow early performance. The inability to make cash off these publishers will hit Nintendo's wallet almost as hard as that time Pachter punched the Sun out of orbit.

"The poor sales of the Wii U in January are likely to impact third party publisher plans to support the console," he explained. "Notice that GTAV is not on the Wii U; that wasn't a typo, they don't see enough promise in sales to cause them to spend extra development dollars on a Wii U version.

"I have spoken to several publishers who are skeptical, and I think that the Wii U will see a lower level of third party support than the Wii did, unless sales materially improve. If I'm wrong, I'll admit it, but without third party titles, Nintendo will not generate its customary levels of royalties, and losses or break even could become the norm."

Not even the 3DS is safe from Pachter's otherworldly eyes, the analyst pointing out that, despite strong sales, not even Nintendo's plucky handheld is raking in the kind of dubloons required. 

"Many of you point out that the 3DS is selling better than the DS at a similar point. That's true, but the DS was always profitable, and the 3DS is not. Also, the DS saw sales go from 8.8 million units in its first four quarters to 18.0 million its next four, to 20.2 million in its third full year; I'm pretty confident that the 3DS will not get to 20 million units, but even if it did, it would generate little profit from hardware.

"Keep in mind that the DS redesign to a lite version boosted sales, and there was little competition for 12 year-old and older from smart phones and tablets. Now, parents who can afford it are opting for Kindles, iPads, and smart phones for their teenagers, and the more casual of those are perfectly happy playing Angry Birds and putting their DS or 3DS into a drawer."

Pachter concludes by saying Nintendo likely can't cut the Wii U price, but with it not selling right now at the current price, it can't shift the software it needs to be profitable. He also added he wasn't trolling, but somehow I doubt that assurance will be enough for some people. For those people, he had another message:

"To the 5% of you who ARE assholes, bring it on ;-)"

Oh dear.



Jim Sterling, Former Reviews Editor
 Follow Blog + disclosure JimSterling Tips
Destructoid reviews editor, responsible for running and maintaining the cutting edge videogame critique that people ignore because all they want to see are the scores at the end. Also a regular f... more   |   staff directory



 Setup email comments

Unsavory comments? Please report harassment, spam, and hate speech to our community fisters, and flag the user (we will ban users dishing bad karma). Can't see comments? Apps like Avast or browser extensions can cause it. You can fix it by adding *.disqus.com to your whitelists.

 Quickposts
Status updates from C-bloggers

Jed Whitaker avatarJed Whitaker
No comment.
Parismio avatarParismio
Omg i love the internet
Mike Martin avatarMike Martin
Iron Paladin avatarIron Paladin
Jed Whitaker avatarJed Whitaker
I can't wait to mute Niero. #NoRules #ThePurge
Joe Parlock avatarJoe Parlock
I spent all last night playing Day of Defeat: Source. If only Valve gave it even half the attention it did to TF2 or CS:S...
BaronVonSnakPak avatarBaronVonSnakPak
Nearing Platinum status.
CoilWhine avatarCoilWhine
THIS IS THE BEST EMAIL I'VE EVER GOTTEN HOLY SHIT
Parismio avatarParismio
Sheesh i played metal gear rising before and Platinum ruined the franchise.
Fuzunga avatarFuzunga
Toonami is running a poll right now at [url]www.toonami.com/poll[/url] where one of the questions is which show you'd want un-cancelled. Oh, Teen Titans is included? That's curious...
SlyTAdvantage avatarSlyTAdvantage
"The Ravagers dropped the giant insects and waited for them to evolve ... it's clear. This is their plan from the start" -EDF 4.1 scientist So dragons are evolved forms of ants, spiders and/or wasps ....... what?
Ckarasu avatarCkarasu
Every time I hear "I don't understand why people like _____ game", I get annoyed. Of course you understand, if you've listened to what those people were saying. You just don't agree, and that's A-OK. I HATE Twilight, but I understand why people like it.
RadicalYoseph avatarRadicalYoseph
Just tried playing the first Bayonetta game... it was really bad. Honestly I don't understand why Platinum games are so well regarded. None of them are really worthwhile.
StriderHoang avatarStriderHoang
The first person I block is the person who talks shit about Platinum
Torchman avatarTorchman
Even though your waifus are shit
Darth Wachen avatarDarth Wachen
Finally, a blog that I can call my own, I feel accomplished somehow.
Nekrosys avatarNekrosys
Gonna be honest; this really made my day.
Rico the Penguin avatarRico the Penguin
I doubt I'll use it much but I'm totally fine with a block/ignore feature. Everyone has a right to speak, but I don't think anyone has a right to be heard. If this place played country music I'd want a mute button, basically :p.
Sir Shenanigans avatarSir Shenanigans
Mall haul today (plus I split a BEAUTIFUL Star Wars Slave I with my brother). Any thoughts on Haze? Wanted to play it back when it came out and I had no PS3. For a dollar you can't go wrong!
Dreamweaver avatarDreamweaver
I'm not gonna lie, I don't feel "good" about the upcoming "ignore" feature. Maybe it's just me, but I don't like the idea that people can mute other people because they don't agree with them. Spammers and trolls, sure, but not regular community members.
more quickposts


Contest!


Seriously

Invert site colors

  Dark Theme
  Light Theme


Destructoid means family.
Living the dream, since 2006

Pssst. konami code + enter

modernmethod logo



Back to Top


We follow moms on   Facebook  and   Twitter
  Light Theme      Dark Theme
Pssst. Konami Code + Enter!
You may remix stuff our site under creative commons w/@
- Destructoid means family. Living the dream, since 2006 -