Wedbush Morgan analyst Michael Pachter says a combination of the Wii U's technical specifications and lack of third-party support will be a challenge for Nintendo.
Wedbush Morgan analyst Michael Pachter has spoken about how he believes Nintendo's Wii U will be unable to compete with the Xbox One and PlayStation 4, and declared that Nintendo's home console will finish a "distant third in this console race."
"Nintendo's in trouble right now," said Pachter in an interview with ABC News. "Nintendo, I think, waited two years too long to launch a competitive console, you know, a high-definition console with the PS3 and the Xbox 360. I think by the time they did launch a console that stacks up really well, the other two guys passed them by."
Microsoft and Sony will both launch the Xbox One and PlayStation 4 later in 2013, a year after Nintendo launched the Wii U.
Pachter believes the lack of third-party publisher support will also contribute to Nintendo being unable to sell the Wii U to a mass market audience. "The publishers are pretty excited about supporting the Xbox One and the PS4. They really didn't say anything [during E3 2013] about the Wii U."
During E3 2013 Nintendo revealed its suite of first-party Nintendo software for the coming months, including Super Mario 3D World, Mario Kart 8, and The Legend of Zelda: Wind Waker HD.
"We know EA has no games in development for Wii U," added Pachter. "If others follow suit, I mean if you see Activision pull support, if you see Ubisoft, you see Take 2 pull support, the Wii U is a Nintendo-only gaming device, which is the way they were back with the NES in 1985. They're not going to sell a lot of consoles if they don't have games like FIFA, and Battlefield, and Call of Duty, and Grand Theft Auto."
"I think [Nintendo] are at the bottom of a huge mountain with a huge uphill climb," said Pachter. "I don't think they're going to get that mojo back. I think these two guys are passing them by. And this PS4, priced $50 more than the Wii U, why would anybody buy a Wii U? Unless they just have to play Nintendo games. I think the way it actually shakes out is anybody who buys a Wii U that really is a hardcore gamer is going to buy an PS4 or an Xbox One in addition, so they can play those third-party titles they love. So I think Nintendo becomes a distant third in this console race."