Industry analyst Michael Pachter has always worn his black heart on his tattered sleeve when it comes to Nintendo – but in the latest episode of Pach attack, he got his knives out, ripping the company a new one, saying that Nintendo is a bad company, run by a poor CEO.
"I think Nintendo is no longer able to compete the way they did in the past and sell their consoles at a big profit," he said on Pach Attack. "I think that the Wii, when it first launched they were probably making about $100 of profit per unit. I think the DS when it first launched was probably generating about $50 of profit per unit. The 3DS I think is barely making a profit. The Wii U I think is barely making a profit — I’m talking 5 or 10 bucks per unit."
He says the company’s current situation isn’t the result of Nintendo of America or its beefy president Reggie Fils-Aime’s fault; they’ve just been dealt a poor hand with the Wii U – and that’s Iwata’s problem.
"I think Mr. Iwata’s a pretty poor CEO," he explained. "I think he’s done a very poor job running the company. I have a neutral rating on Nintendo, but I have to say only because their cash level supports their current share price. It’s a bad company that doesn’t make money."
Naturally, Pachter’s raised the ire of the Nintendo loyalists – leaving them with this parting message.
"If you don’t like that answer, Nintendo fans, deal with it."
I actually love Iwata, and the open stance he’s taken with the company’s Nintendo Direct videos. He started off as a programmer for Nintendo in the early 80’s, co-founding HAL Labs; worked his way up to being CEO of a much beloved company; is open and direct with consumers and happily apologises when thing go wrong.
If that’s the hallmark of a bad CEO, then this industry’s in worse shape than I thought.