Thursday, October 13, 2011

Analyst: Wii U “not quite next gen,” lacks third party exclusives

Wedbush Securities analyst Michael Pachter forsees an uncertain future for Nintendo's next console.

"The Wii U is a pretty ambitious undertaking. It's a new console, with new controls and architecture, but it's not quite 'next' generation," Pachter said. "Developers have to contend with differences between the Wii U and current generation consoles, then have to figure out what to do with the controls."

Outside of Nintendo’s exclusive games, Pachter doesn’t foresee many third party exclusives in the pipeline on Wii U.  

"The [launch date] is still up in the air, and as far as I know, there are no significant third party exclusives," he said. "Instead, we'll see iterations of third party games already on the market, which is unlikely to drive significant hardware sales."

On the other hand, many games that are in the works for the second half of 2012 have yet to be officially announced. THQ and EA are usually strong Nintendo supporters and in the past have released new IPs on Nintendo’s consoles.

Few analysts predicted Wii’s success story before the console was released in 2007 and it seems like a lessoned learned. Pachter resists predicting Wii U’s success at this point and leaves it up in the air.

"In order for the launch to be hugely successful…the console will need three things: a competitive price, compelling first party launch titles, and compelling third party launch titles," Pachter said. "We don't know if the Wii U will have any of these, so it's quite difficult to predict a hugely successful launch."


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