Forbes are citing a report from ABI Research which predicts that the Wii U, Xbox One and PlayStation 4 will not match the sales of the previous generation of consoles, at least not any time soon.
Practice director, Sam Rosen says the new platforms will also have a difficult time finding traction “without solid titles and first-party franchises.”
Rosen believes that because cheap streaming-capable devices exist, new consoles will not really appeal to non-gamers who want a box for non-gaming entertainment.
“Streaming media is not enough when low-cost STBs are readily available. While we don’t anticipate a drop-off in game console households, barring significant changes to less developed console markets in Asia and Latin America there isn’t a great deal of growth opportunity beyond the current installed base,” explained Rosen.
Furthermore ABI believes that with the casual gaming sector embracing mobile devices, this will hurt Nintendo’s sales in the sector.
“With many of the casual gaming segment embracing mobile devices for gaming, without a shift in strategy and pricing the Wii U will likely fail to match the success of the Wii, which will impact future console shipments,” said senior analyst Michael Inouye.