Analyst Michael Pachter Blames December Sales Declines on Nintendo, Franchise Fatigue

January 7, 2013 -

Speaking to GamesIndustry International, Wedbush Securities analyst Michael Pachter says that Nintendo's continued weakness contributed to 11 percent of the decline in U.S. video game sector in the month of December. Pachter also said that there was evidence that consumer fatigue has set in - even when it comes to popular games like Call of Duty: Black Ops II.

This year's Call of Duty title saw nearly 20 percent year-over-year sales dip, and even juggernauts like Halo 4 failed to meet the "lofty expectations" Microsoft had hoped for. But the bulk of his finger pointing was saved for Nintendo. He blamed the "underwhelming launch" for Wii U and the "continued weakness" in general for the Japanese console platform owner. Further, he estimates that 675,000 Wii U units were sold at US retail in its second month (up 59 percent month-over-month) with a "very low" software attach rate of around one title per hardware unit.

Although Pachter sounds like he is preparing for the video game industry apocalypse, he does have some optimism for 2013. He expects that titles like Dead Space 3, BioShock Infinite and GTA V will drive sales during the year. He also expects a serious rebound for the industry in 2014 when the real next-generation cycle starts again with the launch of new consoles from Microsoft and Sony.

"It is clear to us that those companies who primarily focused on traditional gamers were largely unscathed by the declines over the last few years, and those same companies will disproportionately benefit once traditional gamers drive industry sales into positive territory in 2014 and beyond," he said.

Source: GII


Comments

Re: Analyst Michael Pachter Blames December Sales Declines ...

Well, I DO have a case of Pachter fatigue.

7 days into the new year and I am already reading his latest idiocies. Not a good way to start 2013.

Re: Analyst Michael Pachter Blames December Sales Declines ...

Pachter also said that there was evidence that consumer fatigue has set in - even when it comes to popular games like Call of Duty: Black Ops II.

...

He expects that titles like Dead Space 3, BioShock Infinite and GTA V will drive sales during the year.

Though one wonders why consumer fatigue wouldn't be a problem with any of these three titles...

Re: Analyst Michael Pachter Blames December Sales Declines ...

"...with a "very low" software attach rate of around one title per hardware unit."

I refuse to pay $60 for a video game so I bought all my Wii U games used (New Super Mario Bros. U and ZombiU, if you're curious).  I'm wondering if the high price is a contributing factor to the low attach rate.

Also, with very few exceptions (Sing Party), the games are all available digitally.  Are digital sales counting towards the attach rate?

"He expects that titles like Dead Space 3, BioShock Infinite and GTA V will drive sales during the year."

Three titles that, as of right now, aren't coming to the Wii U.

 

Andrew Eisen

Re: Analyst Michael Pachter Blames December Sales Declines ...

And people wonder why I consider his words to be crap.

 
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