According to analysts from Japanese Macquarie Capital Securities, investors should avoid buying into into Nintendo stock until after E3 2012. According to the Macquarie, the uncertainty around the Wii U and Nintendo as a company contribute to a unfavorable investment option. The analysts appear to be worried that the Wii U might not be a huge success, and they list the following reasons of concern for the Wii U:
- The Wii U hardware doesn’t appear to be much more powerful than current generation systems, which means it has “no edge in attracting current core users”.
- Competition from Apple and its iPad might undermine the Wii U and its tablet controller.
- The Wii U will have only a 1 year advantage over the upcoming PlayStation 4 and Xbox 720, which are rumored to launch i 2013.
- Activision has no plans of supporting the Wii U with a release of Call of Duty on the platform (according to the analyst).
Nintendo’s share price has fallen drastically over the past few years, with the Wii selling less and less units and becoming more and more obsolete. Clearly much is at stake for Nintendo with the Wii U, but it’s hard to judge a new console at this stage. We haven’t seen any games running on the new system besides some trailers and a few Nintendo first party titles.
It appears that E3 2012 is becoming the most important event for Nintendo in recent years, where stakes will be high and where many will be paying attention to Nintendo to see what else the Wii U has to offer.