Yes this is an article about Michael Pachter AGAIN… 😛

Ok in the latest GameTrailers Bonus Round episode (chapter 2, Pachter Vs. Reggie) Michael commented “It makes rational business sense for Nintendo to release it (HD Wii) and soon”. Well I refer you to an earlier blog of mine discussing Michael and his Wii HD rumors, it makes perfect rational business sense IF Nintendo was Sony or Microsoft.

Michael refuses to submit to the rational that Nintendo do not work like many electronics companies, they do not release hardware when it makes sense to do these “upgrades” they release tech when they are ready to with the right specifications to what they believe the public will grasp. Ok well the public will grasp HD, but it’s not in Nintendo’s future to split the market with a HD Wii, whether its possible to release a Wii that just outputs a HD picture of games designed for the current Wii hardware isn’t a question Nintendo are investigating an answer too. I for one believe this is a good thing, the less resources spent in wasteful ventures by Nintendo the better because this means that they can spend more on developing a system that can show itself off with graphical prowess in HD. Nintendo’s next console should be the true successor to the Wii and it will be in HD.

As I said above and in previous posts, Michael is applying business logic as if Nintendo operated like Microsoft and Sony do. But he fails to acknowledge that Nintendo isn’t a multi electronics and other divisions company they make games consoles and games. Through other 2nd party ventures they may receive fringe revenue, but not to the extent that Sony makes from Sony Pictures or Microsoft makes from Platform Products and Services Division. Games and Games Hardware is all Nintendo does, so to apply business rationale to them cant be copied and pasted from other companies that are “like” them. As there are no companies to mind that can be compared to Nintendo I would believe that business sense needs to be investigated on a case by case matter for Nintendo.

To me on a case by case objective, Wii HD doesn’t make rational sense, as this will confuse, stifle and split the market on Wii. It could prematurely stagnate hardware sales, while the hardcore and maybe a million casuals pick up the WiiHD, after 2 or 3 months sales trends will fall sharply as the “out of the loop” consumer is confused and decides to not buy any hardware. Software sales could also be affected as without proper product knowledge casual consumers will not know if old software works with the WiiHD or if new software works with the old SD Wii.

Now I fully understand why Michael is all out pursuing this ideology, he is an analyst, he gets paid to tell his employers what is going to happen or what he believes will happen. This is to help them make investment decisions, if he cannot come up with some sort of blueprint for a company that he is the “goto” analyst for he will find it harder to attract business for himself. But his flat-out denial of Reggies statement on WiiHD borderlines stupid. I would still have respect for the man if he came out and said “ok I may have been wrong on a HD variation of Wii, but that doesn’t mean that Nintendo aren’t working on HD technology”. Some statements from Reggie Fils-Aime have to be taken with a grain of salt, but his posture, and tone when stating that a Wii HD is never going to happen is the most forefront and honest statement I’ve seen from him, either that or the man is a fantastic actor.

Michael claimed at the end of 2008 that it was coming, the announcement of WiiHD, in 2009 he is exclaiming that it is coming in 2010. Let’s all just hope at the end of 2010 he isn’t beating the same old drum, one way or another.