So with Pachter at the helm, how much has his company made in the past 5-6 years?

By its last 2 quarters it would be ok.   But it's a terrible failure considering its first 3 years.

Looks like Nintendo Is going to make some HUGE money this gen since pachters prediction are usually wrong.

Because fanboy wars.

Iwata was the guy who ran the company when the Wii and DS released... right?

Dude is suffering from a severe case of short term thinking... which isn't the best for an analyst.

I wouldn't touch Nintendo as an investment but it has nothing to do with their business model, but everything to do with the fact that they're very focused on one area, and it's impossible to guess their outlook because it all depends on new generations...

and despite what this website would make you think, brand loyalty in video game systems is a small minority.

If you use Pachter's analysis to determine whether or not to buy stock, it seems solid. The price for 7974 has crashed from its insane highs of several years ago. It is in an industry that is under threats from other technologies. And it does not pay a divided. (Much better than his $44 target price for Facebook (currently $27.85, having recovered somewhat after falling to $17.55 from a brief launch high of $45).

[Of course, the stock market is bonkers. LinkedIn has a higher market cap than Nintendo or Sony.]

Given the state of the industry though, a similar warning should be in place for almost every company.

Also, Pachter uses a double-standard for Nintendo. Other companies can use "razor and blade" -- but Nintendo (which produces a far greater share of the top selling software on its own systems than Microsoft or Sony) cannot. He gets some facts wrong* (unless he has updated, inside information regarding the ownership structure compared to the September 2012 Nintendo filing). He does not understand Japanese business.

Worst of all, he is acting as if he is right and everyone else is an idiot.

First, I can't believe anyone still listens to this fucking idiot, or that anyone ever thinks he's right.  He's spent the last 4-5 years predicting a new GTA "by year's end," after all.

Second, Nintendo not a profitable company? History is not hard to research--and they've been consistently profitable for generations, including the slow years with the GameCube.  I believe the loss they saw over 2011~2012 after the price drop of the 3DS was the first they've ever had while making video games.

And thirdly, we've reached a point where announcing "Nintendo should just make software and not hardware" is tantamount to holding up a megaphone and screaming "I don't actually know anything about video games, but I do enjoy hating stuff for no reason."  Credibility nullified.

A very, very small minority. If brand loyalty was important the PS3 would be just as profitable and successful as the PS2.

He do have a point, I could be wrong thought ,but I do feel the console is getting in the way of software development at Nintendo because their too busy trying to market the Wii U (which in my opinion their doing a horrible job at). I just feel if they drop the console, they'll have the money and time to publish and market more games which will improve software sales for Nintendo.

The problem with what Pachter is saying is royalties. Without a platform not only does Nintendo not collect royalties, they pay them to other platform holders. Even when only 50 million third party games sell on Nintendo systems (which is low), it's $400 million in almost pure profit.

Nintendo software on phones and tablets might sell 3,4,5 billion copies per year - but only at $0.99, with the hw companies getting a cut. So it's still less revenue than now. It will be worth it if they can sell 20-30 billion units of software / $20-30b of revenue in sw though.