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Baird Equity Research is concerned about the Wii U. Analyst Colin Sebastian, in an investor's note, expressed concern about the console's mainstream appeal. The company is currently worried that only seasoned Nintendo fans will take interest in the Wii U.
Going forward, Sebastian stated that Nintendo needs "major first-party releases" like Zelda, as well as strong third-party support. Sebastian states that if all goes sour, Nintendo will be forced to lower the Wii U's price point, and, unrealistically, "consideration will be given to extending first party franchises to other platforms."
"We remain concerned that Nintendo's innovative Wii-U console will lack broad appeal beyond the core Nintendo fan base. Following a somewhat lackluster launch and holiday selling season, Nintendo will need to bring to market major first-party releases (Zelda) and retain the support of key third-party developers to reduce market share losses. In a negative scenario, Nintendo will be forced to prematurely lower the Wii-U price, and over the course of this cycle, we expect consideration will be given to extending first party franchises to other platforms."