Granted throughout my blog i have mentioned Michael Pachter once or twice, maybe more. But this is due to the fact that he is a representative of the industry, not through development but through his research and analysis work at Wedbush Morgan Securities. As an industry analyst it is Michaels job to know the industry inside out and provide reliable information to his employers as well as their consumers, on the sideline he is an analyst that regulars on GTTV with Geoff Keighley, to provide his unique insight to the future of the industry.

Michael PAchter on GTTV

Michael Pachter on GTTV


The majority of his work is indeed a guessing game, he has to look at trends and decide what it the applicable decision for companies within the video games industry would be. It doesn’t necessarily mean that these scenarios will happen or have to happen, after all the company in question may choose a different strategy to attain the goal to which Michael was outlining. The worst thing about making a statement about actions that need to take place, these are dubbed “predictions”. But what these statements are, most often about “price-cuts”, are just Michael setting out what the consumers want and what the marketplace needs to sustain growth and longevity. Michael has on numerous occasions predicted that Sony/Microsoft/Nintendo will have a price cut at a certain time of the year. What he is merely saying is that sales have been declining/or will decline if these companies do not give the consumer a reason to purchase said system/software.

My personal major gripe about Michael is that he is charged with knowing the industry, but he seems to not know Nintendo like he should. This is where hopefully, if he reads this (which I doubt) he will garner a new insight to the workings of Nintendo. For I feel that Michael tries to place a strategy that works for Sony and Microsoft onto that of Nintendo. For instance the so called WiiHD. This would of course make perfect sense if it were Sony or Microsoft, but for Nintendo, from what I know of them. NO, this doesn’t work, it is not in Nintendo’s interests and it doesn’t fit with their corporate strategy demonstrated through years of corporate action or in some cases in-action.

The way I believe Nintendo will look at it is as the following. Nintendo have created the Wii to expand the gaming demographic and get those who are not into gaming to buy a console. The family friendly, accessible and non-confusing nature of the Wii helps it in every way to access this market. Now if Nintendo went and released a WiiHD, this would split the market, create confusion and possibly stagnate the sales of the original Wii while the WiiHD not create the market spin that may have been thought. Im sure the WiiHD will sell, but would it have the same pick up that the Wii had? It’s doubtful as a WiiHD would be a more expensive system as it would require several upgrades to make it possible.

Now there are those of you that think Michael is merely stating that the next system Nintendo will release will be HD. This is not the case as he has referred the WiiHD to be akin to that of the 360 Elite package, a different option of the same system at heart. Nintendo days after the release of the Wii confirmed that they have started working on the successor of the Wii and that it will indeed be HD. Reasoning of this being that they did not think that HD would be the standard in televisions in the majority of homes through the lifespan of the Wii especially in the early years so it would not be worthwhile to create a system that isn’t fully realised by the consumers, while when the successor is announced and subsequently released HD television’s will be in the majority. This would be mainly driven by the governmental switch-over to digital TV from analogue that is happening around the world. Most schemes will be completed by 2012/13 with the easiest option to then receive digital television signals would be through a digital enabled TV of which these are only available in HD sets.

Nintendo is not the same company as Microsoft and Sony, they take their own path and they stick to it. They are ground breaking in new ideas and initiatives but are slow on the uptake of otherwise standard features and experiences. They view handhelds as the device that can be chopped and changed with new updates every few years as people who use these wouldn’t mind upgrading as their travelling games console would undoubtedly get a bit battered and tatty. While the home system is the one that will stay and remain the same throughout the generation bar a few colour changes thrown in for market sustainability. Michael needs to stop bringing practices and policies that work for the other two companies and trying to paste them onto Nintendo and recognise that Nintendo is truly unique and should be treated as an individual who can be sporadically indecisive and incessantly secretive.

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