Analyst: publishers reluctant to support Wii due to declining software sales

black-kuro-wii-juni-4-2009Gloom and doom for the industry continues, this time directed at the Wii. Wedbush analyst Michael Pachter noted that the Wii’s declining software sales is a bad sign for the system and its publisher support.

"Wii software sales were down 19% year-over-year and DS software sales were down 13%, while PS3 software sales were up 58% and Xbox 360 software sales were up 29%. We think this is remarkable, given growth in the Wii hardware installed base of 44% and growth in the DS installed base of 33% over the last 12 months.

In contrast, the PS3 installed base is up 60% and the Xbox 360 installed base is up 32% over the same period. Software sales growth mirrored hardware unit growth for both the PS3 and Xbox 360, but sorely lagged hardware unit growth for the Wii and DS.

In our view, this indicates that Nintendo’s customers either are not finding enough software to satisfy their needs, or need less software than the typical Sony or Microsoft customer."

Pachter added that publishers seem to be “reluctant to support the console as broadly as the other two.”

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