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

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 * to your whitelists.

Status updates from C-bloggers

extatix avatarextatix
It's the best time of the year again! Finally we get to listen to Wham and Chris Rea over and over again!
MeanderBot avatarMeanderBot
The Unofficial Destructoid Christmas Card has been ordered. If you claimed one, you should probably PM me your address now.
SeymourDuncan17 avatarSeymourDuncan17
Started playing Wonderful 101 and it's good, but pretty overwhelming. Think I'll put it down for now. Also sad that there is no penis formation. [img][/img]
Terry 309 avatarTerry 309
What the hell happened to Arcade racing games?
EdgyDude avatarEdgyDude
Red from Transistor has joined Indivisible! many thanks to Supergiant Games for their support to this game.
JBroXNari99 avatarJBroXNari99
Does anyone know if Advent of Indies is happening this year? I looked it up today and didn't find any updates on their Twitter since January.
FlanxLycanth avatarFlanxLycanth
I brought that cake I made into work and it disappeared fast. Maybe if I lose my job I can just make a living selling cakes on the end of my street.
James Internet Ego avatarJames Internet Ego
My review-in-progress of Just Cause 3: Explosions - good. Grappling hook - good. Flying - good. Driving - an abomination. 8/10.
SirDavies avatarSirDavies
Well, ugh, this is awkward. A year ago I wrote a cblog about cool indie games coming in 2015, and not a single one of them has been released :/
SeymourDuncan17 avatarSeymourDuncan17
I was happy to have never spoiled myself the final boss of Splatoon's campaign. That was one of the best boss fights ever and I absolutely love the credits track. So relaxing. [youtube][/youtube]
Niero Desu avatarNiero Desu
Today's kids will never know the struggle of putting an encyclopedia on top of an NES Max to auto-buy 99 potions before heading into Terra Cavern
CblogRecaps avatarCblogRecaps
Sometimes, on more dreary days, I make a smiley face with sliced-pickle eyes and bacon grin in my lunch-burger. It fills me up all the same, but I feel a warm sense of accomplishment, achievement and satisfaction on top of it.
Shinta avatarShinta
[youtube][/youtube] Isn't this the greatest thing ever?
Pixie The Fairy avatarPixie The Fairy
Well, my Bloggers Wanted post is up, but it timetraveled back to Sunday behind Zetta's blog or will only post two days from now otherwise. Mrgrgr.
The Dyslexic Laywer avatarThe Dyslexic Laywer
Yeah I still can't take the new Batman and Superman seriously, Batman just looks so stupid with his cowl lol.
Amna Umen avatarAmna Umen
This near final build of Nuclear Throne is going to bring back my eye twitch.
OverlordZetta avatarOverlordZetta
When I was a lad, I loved this game something fierce. [img][/img] Anyone else ever play the tie in Small Soldiers games? Maybe it's nostalgia, but I remember them being not too bad.
Torchman avatarTorchman
Finally got my surface pro 3. Holy shit I love this little guy. And Windows 10 is better than I thought.
Putting more effort into iOS game review than African American history book report. This is not what Dr. King died for. Or maybe he did, I wouldn't know because I'm not doing the book report. Wha-hey!!
Lawman avatarLawman
More info and footage on that cancelled first-person THQ Avengers game is shown. The heartache's still real.
more quickposts



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 -