Analyst: Nintendo's Strategy Is No Longer Working

The Wii U's tablet-like controller turned a lot of heads when the system was first announced. However, Wedbush Securities analyst Michael Pachter says that there's a price to being unique. The console could be lacking in third-party games come launch time.

"By trying to be 'different' with the tablet controller, they have complicated game design for developers, who can’t figure out if the Wii U will ultimately support only one or multiple controllers," Pachter told IndustryGamers. "Nintendo made the device sufficiently different that they are all but assured of limited third party launch support, which ultimately will lead to modest hardware sales."

Pachter adds that Nintendo seems to take third party support for granted.

"Nintendo has to simply stop living in the past in 2012. They had a great deal of success since 1985 by making proprietary hardware and supporting it with proprietary software. They attracted third party support based upon the large installed base they generated for their hardware. They appear to me to be confident that 'if they build it, third parties will support it', but I don’t think that is the case for Wii U."

"They should stop relying upon the strategy that got them here, as it appears to no longer be working," Pachter added. "I think their resolution should be to look outside of Nintendo for leadership in the areas of digital downloads, a user-friendly online interface and multiplayer gaming."

While the Wii U may run into issues with software selection, I still think it's going to be in a better position than the Wii was. The Wii U can attract more multiplatform games because its HD capabilities bring it in line with the Xbox 360 and PS3. Darksiders II, Aliens: Colonial Marines and Metro: Last Light are some of the games that will be coming to the Wii U as well as its competitors. It's possible that these will be the exceptions rather than the rule, though.