Pachter - Microsoft/Sony are 'destroying' Nintendo, Iwata oblivious, Reggie is 'phenomenal'

The following comments come from Michael Pachter...

On Nintendo vs. Sony and Microsoft...

“I don’t hate Nintendo, but my job is to help investors make decisions about stocks. Nintendo has ¥8000 in cash per share and the stock trades at ¥9600. It used to trade at ¥63,000. The equity has declined in value by $80 billion. That’s why I’ve been critical. Sony is struggling (relative to last year), with overall sales on its various hardware down almost 20%. Microsoft is doing fine, with software sales hanging in there. Both are destroying Nintendo, which had software sales in November that were 60% of Sony’s and 30% of Microsoft’s.”

On Reggie Fils-Aime...

“He’s excellent at his job (which is primarily marketing and distribution/relationship management), and I think he does a phenomenal job with the cards he has been dealt. He is a first class human being, and I am better for knowing him.”

On Iwata, casual gamers, handhelds and not being hateful...

"Mr. Iwata seems oblivious to the fact that fully half of the historical market for handheld games is a casual consumer, and they are increasingly shifting to mobile and tablet gaming and away from dedicated handheld consoles. The 3DS is a great device, but at the casual end of the spectrum, can’t compete with free-to-play games

The things I say aren’t hateful…I would love for all three platform holders to succeed, as I think it ensures consumers with greater choice; unfortunately, each platform holder has a slightly different strategy, and I don’t think all will succeed to the extent they have in the past.”



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