Pachter said that the Wii U is two years too late. This implies that the Wii U could have succeeded, if only the timing was right. The only reason why Pachter says this is because he views Wii U as the Wii HD he always suggested. Basically, if Nintendo had listened to Pachter and released the Wii HD in 2009 or 2010, then the company would be in great shape.

It's clear that Nintendo isn't doing well, but had they listened to Pachter, they would be off even worse today.

Yep you have to judge console only on the Launch window. There is absolutely no way the Wii u can make a comeback- pachter is righ, the wii u is a crappy product.

Lol er dude, ever done a basic science report before? Statement followed by reasoning is hardly something to criticise........Pokemon may sell well. The 3DS may be the best selling handheld this year but ultimately will those two things generate the revenue required? I don't believe they will, and being the best selling "console" (its a handheld, not a static console, ergo bit of a arbitrary comparison) when the others are at the end of their run is hardly anything to be declared as a success, or a successful revenue stream.

As I said, the Wii U currently has R&D costs to recooperate, and is being sold at a lost. Ironically the low sales may help negate the latter part, but low sales will not help with the former. 

Samething was said about the 3DS when it was 4 months & 5 months in its life spam.

I'm guessing you don't know what the mark up value is on the Software on 3DS & Wii U, but especially 3DS software mark-up value.

I'm guessing you don't know what the mark up value is on the Software on 3DS & Wii U, but especially 3DS software mark-up value.

Pachter speaks as if there is literally nothing Nintendo can do to increase sales and the Wii U should just be scrapped. He also thinks Nintendo won't turn a profit this upcoming fiscal year....when they have things like Pikmin, W101, Mario, Mario Kart, WWHD, Retro's project, Pokemon Rumble (going to be huge in Japan) and Pokemon X&Y....then you get into the unknowns on Wii U (X, SMTxFE, Yoshi, unannounced titles), every single 3DS sale and whatever else is released on 3DS. I hope he realizes that when Iwata speaks about 1.1 billion, he is speaking in Yen which is only $11million USD. Nintendo might post that overall for the last FY even.

No one thinks Mario, Mario Kart, and WWHD are going to sell 50m. They will most definitely push the system up into the 12-15million range this year and thinking the Wii U could reach 50m in its lifetime is not completely unreasonable.

The problem with Pachter is how he blindly hates on Nintendo even though they make his "predictions" incorrect over and over again. He flips on just about everything he says, but hardly ever says anything bad about anyone but Nintendo. They are expanding while just about every other company is downsizing, they constantly turn a profit, only posting 1 annual loss in their history right around the time when the economy was near its worst and when the Yen was far too high comparatively. Investors invest if they are likely to see their money increase, with Nintendo's track record of posting profits (they even did so for one of the Wii's last 2 years, when it was effectively dead), it is a very smart investment.

Sony on the other hand, has a credit status of literally "Junk" which tells investors (see: the people Pachter should be appealing to) that they are taking a huge risk in investing, yet he doesn't say a word on it, their downsizing, selling of stock and HQ's....none of it.

He also has this crazy notion the Skype is a "killer-app." I mean, what the hell? Those kids that will "bug their parents to buy an Xbox" probably already have laptops with Skype and cell phones with Skype. As do the parents. He has even admitted to pulling predictions straight out of his ass. He says as many things as he can and hopes something sticks so that when it does, he can say "See? I told you." He is absolutely unreasonable.

I can't think of a financial analyst in any other industry that I've ever followed that seemed to understand less about the markets and products he covers. Patcher seems more like an enthusiast than an investment advisor.

His views on the market and how it might evolve are one thing - after all when 1 of 3 consoles is out and is still in its infancy it's all a guessing game. He is correct with some of Wii U's weaknesses and potential for it to fail (although he seems to overlook some strengths and things it may be able to do well).

Where he really fails is his utter lack of understanding of the economics of the companies he follows. I invest in Nintendo so I'll use them as an example:

1. A few months ago he went on and on about the 3DS price cut and how Nintendo was losing money on every sale. This was despite the fact that about two months earlier in the mid-year financial report Nintendo had reported that the costs were out and that every 3DS sold was now at a profit.

2. He made similar statements about Wii U software attachment rates. I can't be bothered to look for it but I believe he used 1 as the attachment. This was right after their quarterly report which shows it around 3. The amount of software that would have had to be in stores (assuming he was using retail sales) was something like 5 million units which would have been 50% of all software sold. It made 0 sense and was clearly wrong

3. He thinks there is no way Nintendo will turn a profit next year. This is despite the fact that they will come close and may even have turned a profit for FY2012 despite 3DS being sold at a loss for 1/2 a year and launch costs for WiiU. 3DS is likely to sell as much or more hardware this year as last and every sale will be at a profit. It's almost guaranteed to sell more software with a higher installed base and with Pokemon, MH4, AC (US and Europe), and Tomodochi coming out this FY. WiiU may flounder but they will be driving costs out of it to probably get it profitable or nearly so and software sales will go up. Add in the fact that depreciation expenses are going down (they are very high due to a lot of Capital spending for the the 3DS and WiiU) and it's very very unlikely they don't turn a profit. Tack on Japanese financial easing and it could be even better.

I could understand if he just said he's stay away from Nintendo because he thinks they are being poorly managed and investors will get better returns elsewhere. There is a strong case for that as evidenced by Nintendo selling near book value despite the best IP in the business. But to be so clearly wrong about verifiable facts and to constantly do such poor analysis is inexcusable. I'm just amazed anyone would listen to that guy for financial advice.