Michael Pachter has criticised Nintendo for doing an "abysmal" job with third parties.
The analyst believes that the company should be developing a console that can compete with PlayStation 4 and Xbox One, but doubts it will happen.
"I think that they are still in denial about the Wii U failure," Pachter told Game Informer.
"They need a new console that's competitive with Xbox One and PlayStation 4. If Xbox can sell at $349, Nintendo could make it and sell for $249.
"They won't because they still live in that old console world where they think they need to make a profit on the hardware.
"The problem is I think they did a bad job with third parties with the Wii and they've done an abysmal job with third parties with the Wii U, so I don't think third parties would come back for a new console.
What to Read Next
"Ubisoft got really burned on the Wii U making dedicated titles like ZombiU. Activision stopped making Call of Duty for the Wii U, and EA hasn't ever made a game for the Wii U. I don't think they come back."
Pachter also placed much of the blame with the company's CEO Satoru Iwata, describing him as a poor leader.
"Iwata makes a lot of bad decisions. I think he surrounds himself with people who allow him to make these bad decisions," he stated.
"It starts at the top. I think he is not a good leader."
Nintendo confirmed in January that 9.2 million Wii U consoles have been sold worldwide. Meanwhile, Sony has revealed that it has shifted 18.5 million PlayStation 4 consoles.
Upcoming exclusive titles for Wii U include Splatoon and new instalments of Star Fox and The Legend of Zelda.
Joe Anderton is a freelance news writer at Digital Spy, having worked there since 2016. In his time, he's covered a host of live events and interviewed celebrities big and small. A big fan of TV and movies both mainstream and obscure, Joe also enjoys video games and in particular PlayStation. Joe currently does not use Twitter, but he only ever used it to tell people to watch the film Help! I'm a Fish.
