“I don’t know why Iwata is still employed”: Pachter gloomy on Wii U’s future

Thursday, 5th December 2013 21:32 GMT By Brenna Hillier

The Wii U’s “underwhelming” performance has industry analyst Michael Pachter hedging bets on Nintendo for the coming generation.

Speaking at the Game Monetization USA Summit in San Francisco this week, as reported by GamesIndustry, Pachter said that while it’s possible new games may turn the Wii U’s fortunes around, he’s not counting on it.

“I don’t know why Iwata is still employed,” he said of Nintendo president Satoru Iwata, pointing to the company’s failure to bring Nintendo content to other platforms in order to create new fans who might embrace the 3DS and Wii U.

The Wii U’s lifetime sales will top out at around 30 million, he added.

The analyst had more love for Sony, predicting the PlayStation platform will thrive.

“The graphics are phenomenal, and the huge RAM makes future innovation likely,” he said, also praising its CPU power.

The analyst is also keen on the Xbox One, although he expects a new model with a built in TV tuner, and believes Sony will pull ahead if Microsoft doesn’t lower the price of the Xbox One.

Nevertheless, Pachter doesn’t expect the console market to grow significantly in coming generations.

“I don’t think you’re ever going to see 500 million consoles out there,” he said.




    #1 11 months ago
  2. Joe Musashi

    Do you ever get that feeling of déjà vu… ?


    #2 11 months ago
  3. Ireland Michael

    He’s kinda beating the same old drum at this point, but it’s hard not to agree with the tune.

    #3 11 months ago
  4. kupocake

    It’s quite refreshing for Pachter to own up to the fact that he’s utterly clueless about a business decision in the video game industry. Rather than having a go at guessing at what’s going on, like usual.

    #4 11 months ago
  5. polygem

    i don’t know why pachter is still employed tbh.

    #5 11 months ago
  6. Diingo

    I’m not sure why everyone is bashing on him when he’s right about the Wii U becoming an irrelevant console. The PS4 has already sold over 2 million units which is close to half of the Wii U’s sales record.

    #6 11 months ago
  7. monkeygourmet

    Bitchy ‘ol Pach! :)

    He has no idea what Iwata’s contract looks like, you can’t just sack / let people go regardless of performance until certain stages / agreements are fulfilled or not as the case may be.

    Obviously he could step down, but how often does that happen in any industry?

    He’s just taking swipes that’s all.

    Iwata’s made a bold (and frankly unrealistic) forecast, but if were vilifying people for not getting things right, half of MS’s PR team should have their heads on the block over the reveal debacle.

    It doesn’t really happen like that in reality though.

    #7 11 months ago
  8. monkeygourmet


    Because he gets thing wrong about as much as he gets things right.

    #8 11 months ago
  9. Ireland Michael

    @6 Groupthink is a powerful thing.

    People insult him because people insult him. If that makes any sense.

    #9 11 months ago
  10. YoungZer0

    @6: He’s usually always wrong and yet somehow still makes money.

    #10 11 months ago
  11. The_Red

    Didn’t Pach say this 2 weeks ago? And a month before that? And a year ago?

    I’m not saying he’s wrong (Quite the opposite, it’s a miracle that Iwata hasn’t been fired yet). The problem is that Nintendo is not the company that listens to others. Heck, Reggie himself proudly said that they don’t care about fan feedback and petitions.

    #11 11 months ago
  12. Ireland Michael

    @11 You do realise he’s being *asked* these question? He’s not standing on a podium and shouting it from the rooftops.

    It’s the media that is latching onto it so much.

    #12 11 months ago
  13. sebastien rivas

    I must admit, for once I agree with the guy on one thing.

    When he states “Pachter doesn’t expect the console market to grow significantly in coming generations.”
    If Consoles are going media then yes I don’t think there will be much growth. The one in all while leaving a race for graphics as stupid as it sounds is not a good omen for game industry

    #13 11 months ago
  14. monkeygourmet


    It’s funny, he gets more assertive and obnoxious when the ‘analysis’ is a dead cert.

    Even a child could see Sony is almost certainly going to romp this gen, MS to come in second and Nintendo to mop up whatever’s left.

    His balls swell when it’s an easy call, but he doesn’t usually comment on all the fuck ups he makes.

    #14 11 months ago
  15. The_Red

    I think at least half of those times he wasn’t asked specifically about Iwata. My point isn’t about him saying “Nintendo is doing badly”. It’s talking directly about Iwata’s employment status which has become like a regular thing.

    #15 11 months ago
  16. mistermogul

    “Nintendo is not the company that listens to others”

    Exactly. Pachter needs to realise this and move on.

    Also, analysts are quick to forget the success Iwata has brought to Nintendo since he took charge after the Gamecube. Wii, DS and 3DS have all done well and grown Nintendo’s coffers. A 75% strike rate ain’t bad.

    #16 11 months ago
  17. monkeygourmet


    I think, when he thinks he’s on a roll, his mouth runs away with him, very unprofessional.

    Iwata should kick him in the nuts.

    #17 11 months ago
  18. fearmonkey

    @17 Id pay to see that, with mario sound effects!

    Pachter picks on Nintendo because they never listen to him, and right now he can say “see I told ya so”. He wasnt right about the Wii, but is feeling his oats now that the Wii-u has faltered.

    #18 11 months ago
  19. monkeygourmet

    From the article, his genius idea:

    “Nintendo should put old GameBoy Advance content on phones and tablets for free, and charge $3 to $5 for more recent titles from the DS. Pachter feels this would generate enormous revenue for Nintendo and bring millions of new fans into their brands…”

    Quick cash in exchange for poor quality. Genius Pach, genius. And how do you propose you control Mario 3 on your phone Pachter? With shitty touchscreen. Eliminating one of the things that Nintendo hold dear (control and gameplay) is a good way to draw people to the brand?

    Hmmmm… Not convinced at all.

    #19 11 months ago
  20. monkeygourmet


    Indeed, he’s getting drunk on his own farts.

    #20 11 months ago
  21. LordCancer

    the wii u touch pad is flimsy and gimmicky, worse nintendo won’t make anything new. jr is right, no one gives a shit about mario. i wouldnt buy nintendo games on ps4 or xbox one because i already played the best versions of those games along time ago. even this website did up an article about the new zelda game standing on giants and thats my feeling about nintendo except i felt it on gamecube and stopped caring when i got the original xbox, now i have a ps4 and black fridayed a ps3 and last of us. why would anyone seriously buy a nintendo? make something new that isn’t mario or zelda. windwaker was terrible the first time now you expect me to drop 300 for that pos? HA! nah i got a ps4.

    #21 11 months ago
  22. Dark

    Pachter predictions are full of shit , but this time i think he makes some good points
    iwata think the Wii U will reach its goal of 9 million units by end of March .. yeah good luck with that.

    #22 11 months ago
  23. debug

    I’ve looked at an article trying to tell if Micheal should be relevant or not in gaming news.

    So, not really. Maybe VG247 should do the same, and try to convince us that Patcher is worth listening.


    #23 11 months ago
  24. monkeygourmet


    “investors “[...] like optimism. We don’t like conservatism.”


    admittedly, he was talking about Activision when he said that though! :)

    #24 11 months ago
  25. polygem

    “Nintendo should put old GameBoy Advance content on phones and tablets for free, and charge $3 to $5 for more recent titles from the DS. Pachter feels this would generate enormous revenue for Nintendo and bring millions of new fans into their brands…”

    this is the most stupid and short sighted thing they could do. he really said that? they should do the ‘shovelware’ with their classics on mobile phones? this guy is so wrong it hurts.

    nintendo must stay nintendo on nintendo machines. no easy cash ins. that would be stupid. what counts is quality not quantity. sure, they could earn shitloads of money by going multiplat, by doing silly things like pachters masterplan but if they would do what he said there they would instantly kill what they’re are about.

    guy is hanging out with his wall street buddies too often. too many bubbles not enough substance.

    #25 11 months ago
  26. absolutezero

    Everytime. Every single fucking time.

    I actually want Nintendo to shut its fucking doors so I get to stop seeing this shit. If the meer existence of a company thats not Sony offends people to such a high degree then fuck it. Shut it down.

    Shut it all down.

    #26 11 months ago
  27. polygem


    #27 11 months ago
  28. monkeygourmet


    I would like to see more use of their back catalog on Wii U though.

    I’d like to see a virtual Nintendo museum with GC, GBA games all available. At the moment, it feels like they are using crappy NES / SNES games to pad out Wii U game releases. That sucks a bit. But yeah, putting them on phones is a horrible idea.

    People can emulate them anyway with android / IOS. They play like shite without physical controls.

    #28 11 months ago
  29. Dirk

    Nintendo is getting crap for not supporting business rivals? I really don’t understand this argument. Why the hell would Nintendo help sell a rival’s hardware and allow them to profit from Nintendo’s products?

    I’m more interested in why Nintendo made little effort to advertise their Wii U than why they aren’t helping out the competition.

    #29 11 months ago
  30. Tormenter

    “I don’t know why Pachter is still employed”: Iwata gloomy on an intelligent future.

    #30 11 months ago
  31. polygem

    @27: i would love to see that as well but implemented in an intelligent way like the luigi game that comes with mario 3d land (edit:world:) for example. this adds even more value to some great content and it helps building trust in a brand. it gives you a good feeling about having spent your money on a great product. some might say this isn’t doing anything for their stockholders but in fact that’s not true. caring about the little details that help shaping the face of your company can pay off in the long run and if anyone has shown how long term success works in the videogame business, it’s nintendo.

    i want to see so much more nes/snes games on the virtual console/e-shop as well, even ds games but they really need to stay on nintendo platforms. this part is essential. i think it would be a shit move to look for cash ins outside of their own systems now. maybe at another time but not now. for now they must focus on their own platforms more than ever before. they must be even more nintendo than they’ve ever been before. this way, they will survive. everything else would be a huge mistake.

    @29 :)

    #31 11 months ago
  32. Joe Musashi


    When presented with a genuine, real world business issue – a number of the ‘pundits’ above made it very clear they don’t have the inclination, the real-world knowledge of the cajones to think their way out of it. They’d rather make silly remarks and be evasive.

    But the moment someone else speaks up, they show up like clockwork to passionately dismiss and deride any view that doesn’t match their own. After all, it’s far easier to shoot down someone else’s real-world analysis and assessment than actually engage the brain and offer one of your own.

    And when pointed out, they’ll deflect, distract and twist. Never acknowledging the transparancy of their behaviour and always project their lack of accountability by targeting others.



    #32 11 months ago
  33. absolutezero

    Video games.

    #33 11 months ago
  34. polygem

    *and the dj plays an old celine dion song*

    #34 11 months ago
  35. monkeygourmet

    This is the image I have in my head whenever I read a comment by @Joe:

    It’s the ‘critic’ character from the Pixar film ‘Ratatouille’. I think it fits perfectly.

    #35 11 months ago
  36. _LarZen_

    The Wii U is a gigantic failure, some heads probably should roll over at Nintendo’s headquarters.

    #36 11 months ago
  37. Ireland Michael

    @34 Except for the fact that (at least in this case) he’s entirely right.

    The Wii U is a complete failure at a retail level, and nothing is really being done about it. Most people in his position would have been fired by now.

    #37 11 months ago
  38. monkeygourmet


    And, as I said, Pach’s comments are are hot air unless you know how Nintendo operates with its staff.

    What should or shouldn’t happen is a side point to proper analysis and sounds more like personal bitching.

    Btw, I prob agree with his sales figures (Wii U), more or less.


    Nintendo are a weird company, they don’t always operate in the same way as rivals (for better or worse).

    Miyamoto on being ‘poached’:

    As discussed previously, Nintendo’s individual compensation is not extraordinarily high. Miyamoto has been offered higher salaries from competitors in an effort to lure him away. But he has stayed, since at Nintendo he commands a budget that dwarfs any salary offer, a budget for the creation of surprise and delight. In his own words:

    “Money they pay you and money you get to use for work are totally different things. I realized that very early on. For our main developers, there’s actually no budget (laugh). No, don’t worry, we’re very careful about managing it. But we have it good, the company tells us we can use what money we need.”

    #38 11 months ago
  39. Francis O

    Seriously, Why is Iwata still employed? Its not like the 3DS is crushing the every other system to the tune of 1.3 million units last week.

    And how about that Wii U? It sold more than the PS4 in North America over Black Friday. The sales in Japan are rising as well.

    Pachter is a joke, people buy the 3DS because its the only place you can play Ninty’s games.

    #39 11 months ago
  40. stealth

    Iwata is doing a great job. I disagree with pachter.

    #40 11 months ago
  41. Dragon

    A delusion is a belief held with strong conviction despite superior evidence to the contrary.

    #41 11 months ago
  42. Tormenter

    @30 :D

    #42 11 months ago
  43. Clupula

    Iwata needs to go, in order for Nintendo to become a healthy company once more. Right now, the success of 3DS is enough to balance out the failure of the Wii U.

    But I can see why he hasn’t been removed yet. He did make the promise to the shareholders to sell 9 million units by March. A number there is no possible way for them to accomplish, as they will be VERY lucky to reach 5 million by then, but it’s still a bar that was set. If he’s still employed in April, though, I will be very surprised.

    Nintendo needs an enema, and then an infusion of new blood, who will bring the company into the 21st Century. Sure, there will be ass-plankton who will try to skewer numbers in order to make things look better than they are, by doing things like, saying the Wii U sold better than a system that sold a million units two weeks before and is currently experiencing a drought, while omitting the fact that it was outsold by every other console in the market, but those people are doing more to hurt Nintendo, in the end, than to help it.

    #43 11 months ago
  44. Cobra951

    “Game Monetization USA Summit”–the most disturbing part of that story.

    #44 11 months ago
  45. Kabby

    Yeah, I did a bit of a double take when I read that shit too.

    #45 11 months ago
  46. The_Red

    Can’t argue with that :)

    Of course nobody’s saying that games should be free and developers should stop asking for money but that summit name and team SCREAM micro-transactions too me. Sadly, even Nintendo has tried that in Japan so no one is safe (MS, Sony or Nintendo).

    #46 11 months ago
  47. polygem

    @36:…and isn’t that fantastic?

    that’s my point all the time. i know people do not really understand that nintendo indeed operate with a different ethic than their competition. i know i will get shit thrown at me from all sides but it doesn’t matter because they really are and i hope it will stay like that for as long as posible because this is why we see so much different stuff from them. sometimes it works (wii, 3ds), sometimes it doesn’t (*saleswise* wiiu). sure they need to earn cash just like everyone else in order to survive but they refuse to see a bad ceo in iwata only because he launched a (great) console that noone wanted. it’s not like all he was doing was a mistake. in fact he did a lot to push nintendo into a bright future and helped to modernise them – in slow nintendo pace, but they’re on a good and solid way. they still are in a good position in a changing market, even with a struggling product. i think it’s naive to paint a picture of a sinking nintendo with iwata as the captain. i know capitalism works like this. you fail. someone who’s stronger will eat you up alive. you’re dead…now, this means you must see nintendo as a whole as a failure but that’s just not the case and this is where the logic of some guys on here ends. only the wiiu struggles, a machine that will have a lifespan of 5 years max. miiverse is ready, 3ds is a huge success just like the wii. the next nintendo thing will be interesting. it’s still to early to let the heads roll, only fools would scream for that.

    now let me sign my *save iwata* petitition and send it to reggie.

    #47 11 months ago
  48. Legendaryboss

    Oh my another one? 4+ in one week? Okay, nope.

    #48 11 months ago
  49. Legendaryboss

    Hmm this guy commented on Wii U, why am i seeing “Nintendo have 3DS?”

    #49 11 months ago
  50. polygem


    because it’s a full story bro and it plays a lead character in it.

    NOONE says wiiu is doing great but many are talking in superlatives dooming nintendo, asking for iwatas head.

    to me that’s really a naive and shortsighted view, to others i am the one romanticising nintendo :)

    who wants to judge that?

    we’re just a bunch of guys talking out of our asses on the internet.

    #50 11 months ago
  51. polygem

    it’s the pub of 3 millions

    #51 11 months ago
  52. Jlahoud

    I don’t know why Pachter is employed…he is an idiot speculator who does not know anything aboud gaming…he shoud shut up and leave gamers alone….he.must be paid by the competition to create fear about Nintendo. But as much as he say Nintendo will never surrender…wii u is a great system just like 3ds and he shood shut up

    #52 11 months ago
  53. Jlahoud

    Anybody got Pachter email so we can write his a message to buzz off an leave Nintendo alone…the more he speake the more he proves that he incompetant and corrupted by some industry fools …

    #53 11 months ago

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