He's right about Nintendo. There is interest in the content but not the home console hardware.
"B-b-b-bu-but wh-wha-what about the 3DS sales!"
Yeah, what about them? Nintendo is selling 3DS and still reporting heavy quarterly losses, and the company is witnessing their worst losses in history. It's not surprising that these miserable results coincide with Nintendo selling their worst-selling home console ever (Wii U), along their worst-selling handheld ever (3DS). Something has really changed these last few years and Nintendo (the insular, blind and dopey company that thinks they know everything) has been caught off guard.
The handheld market is irreversibly shrinking worldwide and they are losing mountains of cash fast. And worst of all, consumers and developers have turned their backs on the Nintendo home console, and some are not coming back.
So what is Nintendo going to do for next-gen? Take an even bigger financial risk and make a super-powerful console that is not guaranteed to sell well? It could attract more third-parties back, but it could also sell much worse than PS4/X1 and just put Nintendo deeper into the hole and lose billions more.
I think Pachter was being nice. He meant to say, "They're fu**ed, man!"
Sheep probably don't think the scenario is that grim. But then Iwata announces this new, expensive QOL project, when they are already losing considerable money and have had to lay off workers in Europe. Do you really think these are the actions of a company doing well? So Nintendo is in zero financial trouble now?
And console launches are not like our lovely springtime seasons where every tree displays beautiful renewal, and every bad ache and memory is forgotten and we start over fresh again. Nintendo is witnessing (with the exception of the Wii/DS years) huge contraction each generation (losing followers and sales), and it's eventually coming to a choking point - and this may be the critical fork in the road where Nintendo has to decide to either take one last gamble or go third-party.
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