Wii U presents “increasingly problematic structural problems” for Nintendo — analyst

Fresh off the rumors of its potentially, er, lacking technical capabilities, the Wii U certainly hasn’t been gaining much in the way of optimism as of late. Now, Nintendo can tally one more market analyst in Japan to its list of next-gen skeptics.

David Gibson, from Macquarie Capital Securities Limited (Japan), has expressed serious doubts about the long-term success of Nintendo’s upcoming console, predicting that the company’s stock will “underperform” in the near future. He advises holding off on shares of Nintendo at least until E3, and notes that “the competitive position of the Wii U has deteriorated.”

And why’s that, you may be asking? To sum, Gibson lists three potentially major dilemmas for the Wii U:

First, Gibson notes that, if the Wii U really is less powerful than this generation’s Xbox 360 and PlayStation 3, as the aforementioned rumors have suggested, then the only attractive feature it will have to core gamers is its tablet-style touchscreen controller. According to Gibson, this alone will not be enough to hold onto those core users for too long.

Second, Gibson believes that very touch display on the Wii U’s controller has been rendered “less connected and less relevant” now that the iPad has unleashed its retina display to the masses. With handsets’ processing power approaching that of consoles with every passing year, and with the iPad reportedly working on its own gaming controller, Gibson believes that iOS will soon be able to deliver a better single-player experience than Nintendo.

Finally, Gibson thinks that the Wii U will only have one year before Sony and Microsoft release their respective next-gen consoles. Once that year is up, he thinks that the hardcore crowd Nintendo is seeking will simply have no interest in the Wii U with the PS4 and next Xbox out there on the market.

The Wii U has been confirmed for launch by the end of this year, with the latest rumors predicting November 18 as a possible release date.

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