Wedbush Securities research analyst Michael Pachter hasn't exactly endeared himself to Nintendo fans over the past few years. He wrote off the Wii U's chances early on and has been famously critical of the Japanese firm - something, it's worth remembering, he's paid to do in his day job, which involves handing out advice to potential investors.
However, on the latest episode of Pachter Factor, the outspoken analyst actually had some positive words regarding the Kyoto veteran and the chances of its new machine, the NX.
Initially, Pachter summed up the problems Nintendo has had with the Wii U before moving onto what is surely the console's swansong, The Legend of Zelda: Breath of the Wild:
They really lost third-party support. EA supported the launch and then stopped making games for it after a year. If you don't have third-party support the only people that end up buying a Nintendo console are fanboys, who only want to play Nintendo games. Now, flip that over. If you are not a Nintendo fanboy but you love Nintendo games, the cost of playing them is you've got to buy a second console. Because, you're already playing GTA or FIFA on your Xbox One or PS4. So, just to play Nintendo games, it's hard to justify a console. With one exception, Zelda. I totally get why people would buy an NX to play Zelda. It's a frickin' great game.
I don't know if Nintendo is telling me the truth, they're not liars. But I don't know if Nintendo is exaggerating for a fact, but they told me that the map in Breath of the Wild is 12 times the size of the map in Twilight Princess. Like I said, I don't really know what that means but it sounds like there's 12 times as much to do.
The point is, it sounds like a much, much bigger game. And, if the game is as big as they say, that's enough. You will buy a console just to play that game. Obviously they are going to have other games coming up behind it. I think that they recognised a year or two ago that the Wii U was kind of over. I think they probably diverted all of their development efforts to support the NX. Zelda is going to be essentially a launch title, it will be the biggest game out.
For Pachter, having a game of Zelda's standing as a launch title will help the NX out of the gate:
So, I think the NX kind of quickly sells the same install base as the Wii U and, assuming the NX is not as complicated as the Wii U. Assuming that they've sold the GamePad problems, whether it's just a conventional controller or they've fixed the battery life, made it more of a tablet, and there's more to do with the NX. If they can get third-party support, I think they're going to be competitive again.
He also feels that Nintendo is launching NX at the right time:
I frankly think that they're benefitted by the Xbox One S not being an upgrade over the Xbox [One], it's just thinner and lighter. I think they're benefitted by the PS4 Neo and the Xbox Scorpio essentially being mid-cycle, modest upgrades intended, I think, to support VR, and all fully backward compatible. Maybe the NX is coming at the right time.
To sum up, Pachter points out that there are still a lot of "ifs" to sort out, but if Nintendo can play its cards right then the NX could become a "solid, competitive console":
It looks a lot to me like the NX is going to be essentially a PS4 in a Nintendo case. If it's that powerful, if it's easy enough architecturally for all the publishers to support, so FIFA, Call of Duty and Battlefield are on the NX, then absolutely I think this thing is going to sell really well. Let's hope Nintendo get their mojo back, let's hope they get third-party publisher support. If they do, I frankly think it is enough to carry the NX launch. If they get third-party support, it will sell 20 – 50 million units and be a solid, competitive console.
As always, it's worth stating that these comments are just one person's opinion. A lot of Nintendo fans don't like Pachter for saying it how he sees it, but only the most blinkered would try and argue that he hasn't been proven right with the Wii U, which will go down as one of the company's most commercially disastrous hardware releases.
Do you think Pachter is on the money this time? Let us know with a comment.
[source nintendo-insider.com]
Comments 71
Outspoken analyst? Outspoken Michael Pachter! PACHTER! Why, oh why, NLife, don't you have the guts or decency to put that in the article title?
You know how people are going to respond...
Take Pachter with a healthy grain of salt, as usual, since he has hardly ever been right, so his opinions really don't hold all that much weight in real life...
I also have a good feeling about the NX.
It will be the best microwave ever. It will even have a portable microwave, for the food on the go.
You can quote me on that
not even putting pachter in the head line anymore, i see
I wonder if he got that from us in the forums discussing this point for well over 3 months now.
NO MORE PACHTER PA-LLLLEASE!
i wish i could just go to nintendo and tell them to put all the third party games on wii u with better graphics than the ps4 version, market at that and then they get double the nx sales
@kamikazilucas that and don't forget having an online interface that will rival the XBox 360/One and Nintendo will have a real winner on their hands.
@kamikazilucas better graphics than ps4 ? lol assuming that NX will be way more powerful that ps4 ? ... LOL keep dreaming this aint happeing
@peeks its gonna be about as good as the neo
@luigifan624 if they dont have a better interface than the wii u, then were Nibelsnarf
There was an article way back in Forbes tech section that analysed the analysts in tech. Pachter was on top3 with a very high success rate for investors.
He might be an butt, but if I had to give my money to someone in tech business and trust for solid payback he would be a good candidate.
Yes he's had his share of poopy commentary, but for Wii U as an example, kinda spot on.
I'll hope he is right again, since I have Nintendo stocks nowadays (Well not me, my kids have them, but I am their guardian and asset holder)
@kamikazilucas lol okay whatever xD
@Captain_Gonru so kind of a "by the skin of their necks" position then? Rock and a hard place, or as they say in the Netherlands: "that's like shooting with a carnival rifle" pointing to the fact that these things are atrociously calibrated (possibly on purpose), making you miss way more times than necessary, but if you shoot often enough, you'll hit something eventually...
Can you not just say his name in the article titles from now on so I know not to bother opening it?! This guy's opinions are not worth listening too.
Why, NL?
You know Patcher has zero credibility with Nintendo.... Why can't you find another analyst to cite/interview whatever? With all the consulting groups that exist, surely Patcher can't be the only analyst that exists, right?
It's funny, the words of Pachter and Nintendo Fanboys have always seemed to me to mirror each other. People state that Pachter and fanboys are at odds but really, they both seem to dream the same dreams about Nintendo
@ekreig A face only a mother could love...
Question: what stands out if you place Pachter next to a cow?
Answer: the intelligent look in the eyes of the cow...
Say what you want about Pachter but whether what he is predicting is right or wrong,he's being positive about NX.Positive news spreads so the more positive articles about NX the better. The Wii U was surrounded by negativity from day one,including from Pachter.
I know we have all disagreed with pachter at one point or another, but I think he is pretty accurate here.
A lot of it is speculations about NX, but there is nothing fundamentally wrong about what he says.
I personally don't care about FIFA, Battlefield, etc. 3rd party support as much as about support by Atlus, but it makes sense to cover that market if they want to move a lot of consoles.
I've honestly started to like Michael Pachter, since I discovered he had a Game trailers show/has a new show. Good to hear different voices. He's a bit harsh but has some good insights generally.
He is literally basing this off of Zelda alone. He knows nothing about what the NX is anymore then the rest of us. Plus he fails to forget that Zelda (if people want) can be bought cheaper on the Wii U by the time it's released on the NX. He's getting all giddy over one game and as far as we know won't have any technical advantages on the NX.
Isn't this a rerun? I feel like this very same article came out during E3.
I'm not sure why people get upset over Pachter. He's right as much as he's wrong but that's the nature of projections.
"Wedbush Securities research analyst Michael Pachter..."
Stopped reading right there. Nice try, Nintendo Life, by not putting "Pachter" in the title you tricked me into clicking... except I have adblock anyway.
I guess NX is doomed then.
Please don't give that D1CKH€@D the time of day. A fairground fortune teller knows more than that charlatan "analyst". Replace the word "outspoken" with "clueless".
He might be douchy, but MP made some valid points. Kinda surprised he didn't mention dropping the Wii brand name and a better (actual) marketing campaign for the NX than what the Wii U had.
It seems a little weird to me the positive buzz the NX is getting compared to what the U was getting prior to its launch, which wasnt very good.
"Pachter Factor" that is funny...
Anyways.. In a few more months we'll hopefully get the "truth" about the NX straight from Nintendo.
Call of Duty and teraflops ensure success. The sad state of gaming. Can the average gamer tell the difference between, say, a console with 3 teraflops and 4 teraflops. People act like the PS4 has all the power you need until the next console comes along. As if, the previous gen games are now unplayable, like playing in the Stone Age. I believe, more and more, what Iwata said about video games plateauing to some extent over the past few years and will be more so in the futue. Look at this past e3, I feel like they've been showing the same games since 2008 - third person view, guy with gun, half-baked plots, lots of cartoonish violence, but hey! Microsoft is promising a new Xbox one with (wait for it) more teraflops! What a sham!
@Dakt Worked on me, will work on thousands of others.
Eh, I'll just keep blocking the site analytics and ads until I get reassurance that they aren't doing this indefinitely.
The thing I'm most concerned about regarding NX outside of actual games is the online infrastructure. If it's not as good as XB1 in that regard then NX is doomed.
"I think they probably diverted all of their development efforts to support the NX. Zelda is going to be essentially a launch title, it will be the biggest game out." Everyone forgets how massive Xenoblade X was, and even with some estimates, its clear that Zelda BotW won't beat it.
I had genuine interest clicking on this article only to find out it's about pachter, dang, fooled me again!
@Blastcorp64
That's a pessimistic view, sure. Power gains have slowed and gaming maybe hasn't been as innovative as it has been. But not all gaming is static. VR hasn't been good in the past and may reach a mass level of acceptance due to recent power increases. I'm a racing fan and I know the physics involved in racing games has made huge strides recently in the physics department due to new power gains. And maybe retro titles haven't benefitted much from additional power, but there has been a rash of really good retro titles lately. I mean, I don't really do FPS either, but the cupboard isn't bare for me. And if people like COD than good for them.
@peeks You can get an Nvidia 950 for the low low price of $120 right now..which is about the same speed wise as the PS4......at least it can run The Witcher 3 past 30 fps on max settings unlike the PS4. Graphics are getting cheaper and cheaper, for the Wii U's cost of $350, and assuming that the Blue Ray Disc holder is gone and we are back to cartridges, the NX can easily get a better graphics card with $350. Heck, the Nvidia 970, which is 2 times better than the PS4, is about $280 (Don't talk about the AMD 480....yeah horrible graphics card because of 90W PCI-slot overwattage -_-).
The main question is more of will their system's software support 3rd party engines like EA's Cryware 3 (I think). If the NX can't run 3rd party engines, no amount of hardware improvements will mean anything. Companies don't like making new Engines for one Console.
@NintendoFan4Lyf "I think Microsoft has been most clear at this point that the Scorpio is just for the 4K crowd." So the Scorpio is going to cost as much as the Nvidia 1080 for $670? . NOPE, really this system is going to be more of "there is a 4k feature, but only Indie games and a few triple A games running at modest fps." Heck the Xbox One base wasn't even 1080p, but 900p. I think this is more to run videos at 4k than games. The new Nvidia 1070 and 1080 can run that well......but they are crazily (in the eyes of the common consumer) priced compared to current consoles. Will VR make a difference? Yeah it will....when you don't have to pay about $400 for a PSVR, the same price as the PS4! At that point get a Xbox One, PS4, or a modest gaming PC. These consoles are going to flop unless there are more idiots than usual in the market than usual.
Man, I wish Nintendo would just give a tiny hint as to what the NX is now, nothing special, just something tiny, then say nothing about it till September or October with all the details.
Everyone's talking about the NX but it means nothing right now. A sliver of info would get the hype train going for a full announcement a few months later.
Knowing nothing is driving me a bit mad!
How do you have a good feeling about something nobody knows anything about.
The only thing we have to go on regarding the NX is vague statements Nintendo has made, patents here and there that could be for anything or nothing, and their current attitude which seems to still be aiming to reclaim the casual non gaming market they had and lost on the Wii.
All the things he says in this article are valid, but all completely obvious
@FlameRunnerFast The Scorpio has officially been touted by Microsoft, and Phil Spencer as well, to offer true, native 4K gaming. Hence the hefty upgrade because according to them, you would need something at least four times more powerful than current gen consoles to run 4K games. The PS4 NEO is the one that will only do 4K streaming and media, since that will be almost 2 TFlops less powerful than the Scorpio. The closest it could come to 4K gaming is by upscaling 1080p games, but that obviously isn't true 4K.
Mostly everyone seems to bash the Nintendo Wii U, but I really do enjoy having a Nintendo Wii U.
@FlameRunnerFast I also wonder why you keep using Nvidia in your examples, since practically everybody knows that both the Xbox One and PS4 use custom AMD hardware, both for their CPU and GPU, based on AMD's Jaguar architecture.
Besides that, the CPU's are heavily modified, offering 8 cores each, as opposed to 4 in most customer PC's, so you can't compare specs and prices with normal PC hardware.
@HappyMaskedGuy
Wow there coming thick (literally) and fast today.
I'll wait for your next reveal sown macky d's.
Wait, is this Michael Pachter actually making sense? And using logic?
What has this world come to?
Let's keep praying for Nintendo for the best effort.
I (still) heard a rumour....
I knew it was Pachter just from the headline. SMH.
@Captain_Gonru Sure sounds a lot like shooting with a carnival rifle to me... (a hit every now and then, enough to keep people happy)
1. "It's a frickin' great game." Really? Like how many times exactly have you played BotW? Cause I'm thinking zero....
2. "But I don't know if Nintendo is exaggerating for a fact, but they told me that the map in Breath of the Wild is 12 times the size of the map in Twilight Princess." You know how else they told? ME. And everyone that followed E3.
Pachter getting over optimistic here. Especially about Nintendo, it's scary.
And Scorpio does not look anywhere close to being a modest upgrade to me, considering the GPU upgrade.
@Shigmin I agree, I've watched some of his earlier shows the other day and people should do the same. I don't take his word for granted, but he sort of knows what he's talking about. He's not always right, but he definitely not wrong 24/7.
I think he is on point this time but I still need to say it: SHUT UP PACHTER!
Imagine being in a profession where your opinions are constantly reported by the media completely independent of your success rate.
Seems reasonable. If you already have a PS4 and/or an Xbox One, then it might seem reasonable to pick up an NX rather than updating your console to the "improved" versions.
I see a lot of "ifs" in that last paragraph. Let's hope the "ifs" do pan out.
@cleveland124 COD's popularity doesn't bother me. I was more making an indictment on this rule book on how to create a successful console (which Pacther is probably right). Investors first attitude and dont create anything thats unproven.
I interpreted microsofts decree of reinventing the console cycle as, "what we really mean is - we expect you to spend at least a grand each console cycle (6-7 years) on hardware alone from now on, if you want the full experience."
Yup: flip, flop, flip-flopperdy-flip-flap-flop, fish in a bucket of oil...
What if Pachter truly was a Pokémon?
"Pachter uses predict. It isn't very effective... "
'Because, you're already playing GTA or FIFA on your Xbox One or PS4. So, just to play Nintendo games, it's hard to justify a console.'
Is this guy a parody of everything that's wrong with gaming or what?
'It looks a lot to me like the NX is going to be essentially a PS4 in a Nintendo case. If it's that powerful, if it's easy enough architecturally for all the publishers to support, so FIFA, Call of Duty and Battlefield are on the NX, then absolutely I think this thing is going to sell really well.'
This guy is GOOD. You hear that Nintendo? CoD, FIFA, GTA and Battlefield. Those are the keys to success. You had it wrong all this time with Zelda and Mario, quality and innovation. Like, it's SO obvious now. This guy has cleared it all up for me.
What I really love about this is that he is convinced Nintendo, as a corporate entity, has told him PERSONALLY.
'I don't know if Nintendo is telling me the truth, they're not liars. But I don't know if Nintendo is exaggerating for a fact, but they told me that the map in Breath of the Wild is 12 times the size of the map in Twilight Princess.'
Shhh. It's a secret. They only told him.
What a muppet.
Hey, Nintendo Life, when you gonna listen to MY predictions, and my inside track on QOL production huh?
@dew12333 Reveal upcoming. Hang tight for a Press release.
In the mean time, man this guy right here is like a guru.
Outspoken indeed! I mean, how dare he say those things?! He's a rebel without a cause, shaking civilised society to its core, sentence by outrageous sentence!
even a stopped clock is right twice a day.
(o_O )
I agree more with the writers of this site when it comes to articles covering the same topic. I don't like the way Pachter puts some things.
It's been mentioned on this site that Nintendo attracts dedicated fans in a "bubble" and needs to branch out to a wider audience. Pachter says only "fanboys" play Nintendo games. I don't like that label. Nintendo appeals to male and female gamers. It's good that he has more of a positive outlook though.
@ThanosReXXX I think NLife did that because they realize that most of their readers have no idea what an industry analyst's job actually is.
@Blastcorp64
Eh, I just don't see things that way. Apple is viewed as one of the most innovative companies in the world and they are public. Nintendo has been public since 1962. All businesses are in it to make money. Businesses love real innovation as they typically drive large profits. Unfortunately, the market didn't find the Gamepad all that innovative.
I couldn't find any real quotes but I remember reading back in the Gamecube era, there was a quote from EA or Ubisoft (one of the big 3rd parties) about how only a handful of their games were profitable and the earnings from those games went to subsidize their other games. I love games as much as the next person, but you got to admit that is unsustainable.
@peeks I think that what you're saying makes sense, because Iwata...Oh wait, he's not running the company anymore. Never mind.
@ThanosReXXX Yeah sure. And the Nvidia 970 is 4 GBs. And I take it the console will run Ashes of Singularity at 4K 60 FPS? Or what about GTA5? The visuals will have to be turned down because...the Nvidia 1080, currently the best Gaming GPU, runs the game on very high quality at 38 FPS average...
I consider true native 4K gaming at 60 FPS. Don't kid yourself, the Scorpio will be around the 970/270X range. Perfect for 30 FPS on most Games.
@ThanosReXXX Why? Because Nvidia graphics cards are usually better in non- DX12 games. You wand AMD stats? Ok. GTAV. 4K best settings. 26 FPS.?Also if 8 cores were that great, why does the Intel G5238 2 cores often beat out real 8 core CPUs? They help some....but not that much more.... Also those AMD "8 core CPUs" are really 4 cores with an artificial 8 cores. It helped some...for software applications. Gaming? Intel i5 CPUs beat them out 90% of the time.
Consoles should keep what they are already doing... good exclusives with decent hardware. Nintendo knows this...but PS and Xbox think consumers are PC enthusiasts, which they aren't.
You're all just butthurt because he was right about the Wii U. I hate fanboys so much. Look more objectively, will you?
Oh, now you're just trying to annoy us. You should be above this click bait garbage promoting a liar.
@FlameRunnerFast Look kid, it is like I said: there's no use in comparing Nvidia cards with current or upcoming consoles, since they don't use Nvidia, whether it's the best gfx card out there or not.
That's like comparing Lamborghini with Ferrari, simply because they are bot super cars. But if people aren't using Ferrari's, then there's no use in mentioning them in the discussion, now is there?
You young people need to learn how to use relevant matters in discussions and not use info that happens to be up your alley so you can make your point.
If Microsoft makes an official statement that the Scorpio is aimed at native 4K gaming, then that is the truth until proven otherwise once it is released and can't deliver on its promises.
Besides that, the newer versions of the consoles might make use of Polaris, the higher end cards of which are a definite cut above Nvidia in graphical power vs price.
And AGAIN: it's not only 8 cores, it's 8 cores on a HIGHLY modified CPU, specifically targeted at how consoles operate, you can NEVER compare that 1 on 1 with PC hardware.
I've been at this "a bit" longer than you. Besides being 3 times older, I'm in IT Sales & Marketing and my experience spans almost your entire life, so I'm pretty sure I'm okay with what I know...
@cleveland124 I'm not denying performance as necessary for sustainable business - that is obvious. I just don't like the growing triteness of it all. I just worry the failed wiiu will waver nintendo's confidence to innovate effectively and further reinforced by Pacther-types calling for a nintendo playstation type device. That would be a disaster. You mention Apple - they were at their most innovative when their backs were against the wall - when they weren't the biggest company in the world and actually on the brink of bankruptcy. I'm hoping the NX is a success not because of COD and teraflops but because of a rejection of the status quo - I guess that was my point. Apple didn't become the success they are today by trying to copy microsofts playbook.
@ThanosReXXX Acting disrespectful to another person by calling them "kid" is useless to an argument. It makes you look conceited and saying you have 3 years in an IT Department means nothing, as IT Departments aren't exclusively dealing with hardware. When I was in High School my IT Department didn't mess with anything hardware, they were software experts.
I was using data from anandtech.com to cite why Xbox can't afford to make a native 4k system. And yes Consoles can be modified to work well with their limitations if that system is aware of their limitations. As seen with how Monolift Soft was able to make Xenoblade X run well on the Wii U despite hardware limitations. This does not however mean that you can expect unreasonable hardware increases because you say Xbox is using a heavily modified 8 core system. Companies bluff about their hardware specifications all the time, as I think you would be aware of.
Let's end this discussion saying we disagree. And in the future, please don't use your experience to discredit another person's opinion.
For the record, any article title with the word "analyst" almost always has Pachter contained within it. So, if you see an article that has "analyst" in the title, it would be relatively smart to go away.
@FlameRunnerFast Well, I'm 46 and you are 18, so for all intents and purposes you are a kid to me. And it wasn't meant in a derogatory way, but similar like I would say buddy or pal to someone my age.
I'm also starting to wonder if comprehensive reading is something that they don't teach anymore, since you severely misread me:
I said I was 3 times older than you, NOT that I have 3 years of experience in an "IT department". I've had almost your entire lifetime in experience, so unless you are three, that would make my experience almost 18 years. And I'm a Sales & Marketing professional, business to business, so I'm not a store clerk or anything. I sell, promote, market and distribute hard- and software from companies to other companies.
That is quite a difference, and even if you are also in IT or whatever, you still lack my knowledge and experience. Not stating that to brag, it is simply a fact.
It also seems strange to me that you do believe Anandtech and not Phil Spencer himself, who even though he might be the voice of Xbox/Microsoft is well respected in the business and hasn't really been known to be talking out of his backside yet, other than to deny earlier rumors of Scorpio before this year's E3, which was kind of logical since it would ruin the official moment they now had at the E3 itself.
And agreed on what developers can do with consoles, which is specifically because of the custom built hardware, making it possible to work closer to the metal and squeezing considerably more from the hardware than the standard version of that same hardware would be able to produce in a normal PC. Which is also why I said that you can't compare the two and therefore the Nvidia example isn't really applicable.
And even though 6 TFlops may sound too ambitious now, in a year or two it won't be that special at all anymore, and any of the other rumored and/or confirmed specs of Scorpio aren't all that mind blowing either, so it's actually not all that hard for a company like Microsoft to pull off something like that in two years time.
And if they are bluffing, then console tear downs will show that soon enough, but until then I'll give them the benefit of the doubt, which goes for both the PS4 NEO and the Xbox Scorpio.
Innocent until proven guilty, so to speak. Or glass half full, if you will.
The possibilities are there or will be there in the near future, it's only a matter of how they can manage to make it profitable without making it too expensive at the same time. Or maybe they will sell at a loss, if they think they can sell enough of them to get a good return on investment.
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