How can people say that with straight face after 2011 Wii sales and first weeks of 2012 ?
Because Pachter wanted a Wii HD in 2008? The Wii U is one year late and that's because Nintendo needed to focus on the 3DS (which also launched one year too late) but Pachter was claiming that "the Wii bubble will burst" in 2007 and one year later he insisted the launch of a Wii HD. Even back then people where joking about this saying "yeah when Wii sales go down after 5 years on the market Pachter will claim he was right."
OT: This whole talk about smartphones and "the casuals!" turning their back on Nintendo is based on an entirely wrong view of the market, anyways. Starting with Wii Music Nintendo time and time again failed to develop mass market games for the Wii because they lost track of their original vision which was "growing the market by appealing to new customers". Also after 2009 there simply were no development resources left for the Wii. Obviously the console couldn't sell forever on titles released in 2009 or earlier. Customers noticed the lack of new games and turned their back on the console. But the core of the problem is that Nintendo turned their back on their customers - not the other way around. Instead Nintendo got arrogant and focused on their "core games" again, priced the 3DS ridiculously high and flat out rejected to actively go after their new customers. Instead they thought the mass market would simply buy their products at high prices because "Nintendo is just like Apple!" not noticing how much care Apple puts into their products and how much they focus on the customer. Right now Nintendo is crawling back to their expanded market developing 2D Mario and Brain Training. But the fact remains: Nintendo abandoned their expanded market not the other way around. And you simply can not grow by ignoring customers. It's like Tim Cook entering stage saying "We won't produce new iPhones and iPads anymore. We'll just sell the old ones forever because we don't need to care about our customers. We'll just concentrate on Macs!" And one year later Pachter and his "analyst" friends go crazy: "OMG! Gaming handhelds are eating into the iPhones market! This was totally unexpected! It must be fate! Apple is doomed!"