Nintendo's recent woes could negatively impact the entire games industry, according to UK managing director for Sony Computer Entertainment Fergal Gara.
Following a rough patch for Nintendo which has seen it dramatically slash its sales forecast for the current financial year, Gara says no one in the industry will benefit from the company's position.
The executive says that the rest of the industry needs to work harder to capture younger gamers.
""[The decline] could be detrimental to the market, unless people like us raise our game and help tap into the younger consumer group that they serve rather well", Gara told TrustedReviews.
"That is the challenge to us. We need to bring maybe more family-friendly, more casual experiences into the market. I think there's a big market segment there that we should take the challenge to engage and I see lots of potential to do that."
Following the company's financial address last month, where it announced its Wii U sales expectations had dropped from 9 million to 2.5 million, Nintendo president Satoru Iwata suggested it may be open to mergers and acquisitions.
"We'll offer discounts to steady, regular customers. We'll cultivate emerging markets and launch new businesses in health and other areas. In an emerging country, you can expand the user base only after you offer a product line different from advanced economies in pricing," he told Nikkei.
"We should abandon old assumptions about our businesses. We are considering M&As as an option. For this reason, we'll step up share buybacks."
The PS4 sold 4.2 million units in 2013 amid a supply shortage. It released November 15 in North America and November 29 in Europe and Australia.