Nintendo’s upcoming console receives a daming forecast.
An analyst isn’t confident about the Wii U in the long-term, questioning the console’s internal hardware
Nintendo have managed to keep everyone guessing about their next-gen console – the Wii U – despite showing it off last year. What games are launching on release? What specs will it have? How will it compare to Microsoft and Sony’s next-gen consoles? Whatever the answer, an analyst speaking to GameIndustry International says the Wii U will struggle to be competitive.
At Macquarie Capital Securities Limited in Japan, David Gibson has downgraded Nintendo’s stock to “underperform,” citing an increasing amount of structural problems at the company. With a target price of ¥10,000, he said that if Nintendo moved to iOS and Android then that would rise to ¥20,000. That’s incredibly unlikely, considering Nintendo’s commitment to remaining in the console race.
Reasons for poor performance
He closed by saying to avoid Nintendo stock until E3, due to the Wii U’s poor “competitive position.” The three main reasons:
• Developers have said the Wii U is less powerful than the Xbox 360 and PS3 (you’re eyes aren’t playing tricks – I meant to type that). The consequence is not competitive edge over competitors, aside from the tablet which is unproven. Also, third-party titles are probably going to be ports (e.g., Batman Arkham City) from the Xbox 360 and PS3, though a Mario title could boost sales. Finally, Gibson says the surprise factor from the Wii has gone: the console coped with underpowered hardware because of introducing motion sensing technology. It has since proved influential, with Microsoft and Sony launch Kinect and PS Move.
• Apple’s iPad is increasingly becoming more powerful, with rumours suggesting they could be working on a controller. Nintendo’s tablet would be rendered null, therefore, as users prefer to do handheld gaming on the iPad and iPhone.
• Nintendo has 12 months to gain an install base before the Durango and Orbis consoles arrive from Microsoft and Sony respectively. Users will then switching, with companies such as Activision not supporting the console and therefore not bringing Call of Duty. Activision have said officially that they haven’t made a decision on supporting the console.
The Wii U launches 2012.
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