Pachter: Nintendo’s success NOT bad for the market

In response to Kaufman Bros. Equity Research analyst Todd Mitchell’s comments that Nintendo’s success will ultimately prove to be bad for the videogame industry, Wedbush Morgan’s Michael Pachter said to GamesIndustry.biz that Mitchell’s comments were “naive”.

Pachter stated that he believes Mitchell’s analysis was incomplete. “His conclusion is that Nintendo’s success on the GameCube and GBA will translate to future success on the DS and Wii, so he’s basing his opinion on a view that Nintendo will capture somewhere around 30 per cent market share on each of its new consoles,” said Pachter. “This is naive.”

Pachter added that he expects that “Nintendo’s first party share will decline from around 30 per cent last cycle to around 20 per cent this cycle, and that many publishers trying to capture market share will succeed.”

“THQ has demonstrated that if a third party publisher competes for market share on a Nintendo platform, it can be successful,” he said. Pachter points towards Electronic Arts and Ubisoft, two companies that generally ignored Nintendo consoles during the last console cycle but who are now “laser focused on growing market share on both the DS and Wii platforms.”

Via GamesIndustry

In response to Kaufman Bros. Equity Research analyst Todd Mitchell’s comments that Nintendo’s success will ultimately prove to be bad for the videogame industry, Wedbush Morgan’s Michael Pachter said to GamesIndustry.biz that Mitchell’s comments were “naive”.

Pachter stated that he believes Mitchell’s analysis was incomplete. “His conclusion is that Nintendo’s success on the GameCube and GBA will translate to future success on the DS and Wii, so he’s basing his opinion on a view that Nintendo will capture somewhere around 30 per cent market share on each of its new consoles,” said Pachter. “This is naive.”

Pachter added that he expects that “Nintendo’s first party share will decline from around 30 per cent last cycle to around 20 per cent this cycle, and that many publishers trying to capture market share will succeed.”

“THQ has demonstrated that if a third party publisher competes for market share on a Nintendo platform, it can be successful,” he said. Pachter points towards Electronic Arts and Ubisoft, two companies that generally ignored Nintendo consoles during the last console cycle but who are now “laser focused on growing market share on both the DS and Wii platforms.”

Via GamesIndustry