A lot of my fellow journalists, gamers, and industry insiders like Cliff Bleszinski and Michael Pachter, have claimed that Nintendo could go software only next generation, due to how the Wii U is performing. However, this is practically impossible, on account of how much capital Nintendo has in their bank account. Many people forget how successful Nintendo’s portable business is in Japan as well.

Pachter is flat-out Lying About the 3DS

I have asked Michael Pachter many times to comment on Nintendo’s sales in Japan. The success of Fire Emblem digitally and at retail, Animal Crossing New Leaf breaking 2.5 million units at retail and another 1 million units digitally.The domination of 3rd party games like Monster Hunter and Dragon Quest for the 3DS. No answers, to ANY of my questions.

Yet the minute Pachter sees negative Wii U questions……Pach Attack, bash Nintendo edition! I asked Pachter about the impact of exclusives like Pokemon can have on the 3DS sales, no answer. He refuses to acknowledge the 3DS is a success. When it clearly is, and it’s best years are still ahead of it.

He still thinks Nintendo’s portable business will lose out to smart phones and tablets. Even though the 3DS is around 30 million units and counting. It’s selling at a faster pace than the original DS. All before Pokemon X and Y, Monster Hunter 3 Ultimate, Zelda 3DS, Luigi’s Mansion Dark Moon, and Animal Crossing New Leaf hit the market worldwide. Pachter claimed the 3DS isn’t making money off its hardware, but that’s just a flat out lie. Nintendo has been making money off the 3DS hardware since last July. Jim Sterling has confirmed that.

The 3DS has an XL version that runs for $199.99 and normal version for $169.99. There is no way Nintendo loses money on the 3DS at those prices. I have no problem going to Los Angeles and proving Pachter wrong in person, the facts are on the table. The 3DS is not going to “lose out” to tablets and smartphones. Mario Kart 7, Super Mario 3D Land, and Animal Crossing New Leaf sales prove that. You can’t play those games on a tablet or smart phone. Does Nintendo need to do a better job selling the 3DS in the US and UK? Yes, but games like Pokemon X & Y, Fire Emblem, Luigi’s Mansion, Animal Crossing, Project X Zone, a new Zelda, and Castlevania Lords of Shadow Mirror of Fate, will do just that.

In Pachter’s comparison of DS sales to 3DS sales, Pachter conveniently forgot to mention the millions of dollars Nintendo makes off the eShop. Which was not around for most of the DS days. Full priced titles like Fire Emblem Awakening, is raking in millions for Nintendo.

Now the Wii U

Are sales bad? Yes, will they get better? Of course they will. Nintendo has proven generation after generation they know how to profit. Nintendo has more money than Sony and Microsoft’s gaming divisions.

“Buried in reams of financial data is the revelation that Nintendo have 812.8 billion Yen (£6.7/$10.5 billion) in the bank - enough for it to take a 20 billion Yen loss (£163/$257 million) every year until 2052. Then there’s almost 469 billion Yen (£3.8/$6.0 billion) held in premises, equipment and investments. When that runs out - we’re in the year 2075 by this point - they’ve got some of the most valuable intellectual property in gaming to sell off before the company goes out of business.”

Nintendo isn’t going anywhere, anytime soon, according to the almighty dollar.

Sorry to break it to you Cliffy B, The data says you’re wrong. 

Even Cliffy B jumped into the whole Nintendo Doomed conversation, saying Nintendo could go software only next generation….. with NO DATA to back up his claims.

Meanwhile, Sony had to sell their US headquarters to pay off debts, and rarely posts profits in their gaming division. Wouldn’t the company selling off their own assets to cover debts be more at risk of going software only? Things aren’t looking great for Microsoft either. The RROD fiasco was costly, and they don’t have enough first party IP that sells.

Instead, leaning on charging for online play and monetizing the 360’s dashboard with ads for users who already pay for their service. If the PS4 has free online play next generation and Microsoft charges, I think Microsoft is dead, NOT Nintendo. Only die-hard Gears and Halo fans will buy the Xbox 720, if Microsoft doesn’t come out with some more Killer IPs. I personally can’t trust Microsoft after going through three Xbox 360’s. Faulty hardware and charging for online play? I’ll pass.

Comparing Sega to Nintendo ends now

Did Sega have a killer IP like Pokemon, which has sold over 125 million units Lifetime-to-date? Did Sega have a console that sold over 100 million units worldwide before the Dreamcast launched? Did Sega have 812.8 BILLION Yen in the bank during the Dreamcast days? Did Sega have Mario, Metroid, or Donkey Kong? Did Sega have a market leading portable that dominates the sales charts? The answer to all these questions is no. Nintendo is not Sega, the Wii U is not the next Dreamcast. Nintendo has stronger IPs that sell. The Wii U doesn’t have to sell as much as the Wii to be successful. They can sell 40 to 50 million units in 5-6 years and be ok. Nintendo might have had a weak January, but that doesn’t turn them into Sega. Lets list all the failed hardware Sega had before the downfall of the Dreamcast:

The economy is pretty bad right now. We are in a recession. The US income tax went up in January. March should be better, as people will be getting their tax returns back. Plus, Nintendo actually has exclusive software coming out for the Wii U in March. Monster Hunter 3 Ultimate and Lego City Undercover for example.

You can even look at the Wii U’s sales of New Super Mario Bros U. The Wii U has sold over 3 million units worldwide and NSMBU’s sales are over 2.5 million including the eShop. That’s a damn good attach rate for a new console. Sega’s highest selling game on the Dreamcast was Sonic Adventure, which sold around 2.5 million units. I can guarantee you, New Super Mario Bros U and a host of other games will crush Sonic Adventure’s game sales. Check out this chart of best-selling games on Dreamcast from Sega. The chart shows how pitiful Sega was during the Dreamcast days. Even the Gamecube, which is considered a failure by many, CRUSHED the Dreamcast  in software sales.

So why is Pachter Saying so much Negative Things About Nintendo? 

This is actually simple.

1. Pachter has told investors Nintendo is dead, even saying Nintendo will become “irrelevant“…… Mario Kart 7, Super  Mario 3D Land, and Animal Crossing New Leaf say hi Pachter. Over 20 million units sold between those three games. That’s anything but irrelevant. Wishful thinking perhaps?

2. Pachter has advised investors to buy Sony and Microsoft stock. Yet Pachter FAILED to comment on all of Sony’s lost profit. Pachter failed to comment on Sony selling their US headquarters for $1.1 billion. Isn’t that information he should discuss on a Pach-Attack episode? Nope, not a word from Pachter. Ever wonder why Pachter doesn’t talk about Sony or Microsoft’s failures much? The writing is on the wall, this is all about money.

Every Analyst Ignores Nintendo’s Japanese Sales

Is it me, or is Michael Pachter ducking the Japanese sales questions? Nintendo has been on a financial rampage in Japan, clobbering Sony and Microsoft. I have not heard one bit of positive news come out of Michael Pachter’s mouth about the 3DS in Japan. Nintendo is making money hand over fist in Japan. Shouldn’t that be a topic for Pach-Attack? Why is he acting America is the epicenter of gaming? As if Japanese sales don’t matter? Tell that to Square Enix, who sold nearly a million copies of Dragon Quest VII on the 3DS a couple of weeks ago. Capcom is pulling in some good numbers with Monster Hunter 3 Ultimate on the Wii U as well.

An open Challenge….

The numbers and facts speak for itself. Nintendo isn’t going software only next generation, Sony and Microsoft are closer to that reality. If Nintendo didn’t go third-party after the N64 or Gamecube, it’s not happening after the Wii U. If somebody has any facts or hard evidence that Nintendo will go third-party next generation, do tell. Use the comment section below.

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Author: Francis@PE (19851 Posts)