Wii Successor Must Launch By This Christmas, says AnalystWii 2 rumors have been flying of late, and today the speculation reached a new high, based on

Wii 2 rumors have been flying of late, and today the speculation reached a new high, based on multiple sources claiming that a new HD Nintendo console would be announced at E3. Many would argue that a new Nintendo console has been long overdue. The Wii's been declining in sales, software support has dried up, and the competition has better motion controllers. One analyst told IndustryGamers that Nintendo better launch a Wii successor by this fall/holiday or else.

Sterne Agee's Arvind Bhatia told us, "We are hearing the same thing [about a new Nintendo console] from our channel checks. I think Nintendo has to upgrade this Christmas, given how weak Wii sales have been. Launching this year means they will be able to protect their market share. Sony and Microsoft will probably still wait until 2013 to launch their next consoles," he said.

Ubisoft CEO Yves Guillemot recently called for all the platform holders to advance the cycle and upgrade as soon as possible. We agree with Bhatia, however, and feel that Microsoft and Sony will have at least 2 more years.

EEDAR's Jesse Divnich wouldn't be surprised to see a Wii 2 announcement at E3 either. He noted, "Nintendo originally announced the Wii at E3 in 2005, nearly 18 months before its official launch. It wouldn't be out of the question for Nintendo to announce some top-line specs on its new hardware. In terms of what does this mean for Nintendo? Unfortunately, not enough information exists to warrant any type of speculation, but rest assured Nintendo will continue to dedicate themselves to creating original hardware and software."

DFC Intelligence's David Cole doesn't think Nintendo will push things quickly enough to launch a successor this year, and he said that Nintendo might wait for sometime after E3 to announce. "In our forecasts for the industry we have a new console system from Nintendo launching second half of 2012. However, when it will be announced is another question. E3 could be a possibility but you also have to consider Nintendo's home turf is Japan and they may be more comfortable at a venue like TGS."

He continued, "Our new forecasts come out next month...if Nintendo announces a Wii 2 launch for 2011 we will have to go back to the drawing board real quick. We think the Wii is on the downward cycle of its life and sales will naturally decline every year. However, we still see Wii as the number one selling system in 2011. It will not be until 2012 that DFC forecasts Xbox 360 and PS3 sales will exceed Wii. As for Wii 2 we see it being a fairly successful system as consumers are really craving new hardware and Microsoft and Sony show no signs of delivering. We think it will be a strong seller but not nearly as strong as the Wii."

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