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Wii U will be 'distant third' in console race, predicts Pachter

Latest Nintendo console "in a world of trouble"

Outspoken Wedbush Morgan analyst Michael Pachter does not look favourably on Nintendo's chances with Wii U as more details on next gen consoles emerge.

Speaking with ABC News during E3, Pachter said "I think Nintendo is at the bottom of a huge mountain, with a huge uphill climb". He added that rival next-gen systems, such as Xbox One and PS4, will only intensify Nintendo's challenge.

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Pachter asked, "with PS4 just $50 more than a Wii U, I mean, why would anyone buy a Wii U unless they have to play Nintendo games?"

It is worth noting that Pachter's comments were focused on the Wii U system, and not the company's wider financial position. Nintendo carries about £6 billion in cash on its books and appears to have no debt - a compelling suggestion that there is no major financial risks attached to the company.

In the short term, Pachter believes the Wii U business is significantly challenged.

"I think they are in a world of trouble right now. Publishers are really excited about supporting Xbox One and PS4, but they didn't really say anything about the Wii U," he said.

In May, publisher Electronic Arts caused a stir when it claimed that it has "no games in development on Wii U". It later retracted its comment, but not before a senior engineer at the company openly criticised the system's apparent lack of commercial viability to parties.

"If you see other publishers follow EA - if you see Activision pull support, if you see Ubisoft pull support - then Wii U becomes a Nintendo-only gaming device, which is what the NES was," Pachter added.

"They are not going to sell well if they don't have games like FIFA and Battlefield and Call of Duty and Grand Theft Auto.

"Nintendo waited two years too long to launch a competitive system with the PS3 and Xbox 360. By the time they launched the console, which by the way stacks up really well, the other two guys passed them by. So I think Nintendo will become a distant third in this console race."

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