Pachter is like all those people who think that since they have HD TV sets that the Wii should be HD.
He (and they) completely ignore the fact that half of households do not have HD TV sets in the US -- even though there has been a considerable increase in the nearly four years since the PS3 and Wii (and nearly five years since the Xbox 360) were released.
In other words, Microsoft and Sony released consoles that were ahead of what most people could handle and lost money. Nintendo went for what was there then and profited.
Yet according to this analyst, Nintendo is not thinking logically. He does not grasp the concept that Nintendo has been successful for the last few years by defining the market, rather than following convention. It has twice won via disruption (DS, Wii) and seeks to do it again (3DS).
Based upon this trend, my guess is that Nintendo will come up with something completely different for its next home console.
Mike from Morgantown
(Pachter also completely misses that introducing a Wii HD, without figuring out how to transfer locked game saves and DLC would completely peeve existing system owners -- making them much more likely to buy something else.)