Wii U is like "a Dreamcast scenario revisited", claims analyst

Nintendo's problems with the Wii U are reminiscent of Sega's efforts with the Dreamcast, according to games analyst Peter Skerritt.

Sega famously launched the Dreamcast back in 1998, but despite being critically well received it struggled to sell in the face of competition from the popular PlayStation 2.

Skerritt believes the Wii U has a better chance of survival compared to the Dreamcast, but it's still in for a rough ride.

"Wii U feels like a Dreamcast scenario revisited, and maybe it is, but Nintendo's IPs are stronger than Sega's were & [I] give it a better shot," he wrote on Twitter.

"There's not any danger of Nintendo being bought or going under, even in a worst-case scenario for Wii U."

Skerritt said the Wii U is in the difficult position of competing against old favourites like the Xbox 360 and PlayStation 3, while consumers are also looking to see what Microsoft and Sony will provide next.

"As I've said before, transition to new-gen hardware is going to be slower than many will like," he added. "Last-gen will continue to sell."

He also commented on Nintendo's failure to secure third-party publishers to create games for the Wii U, saying, "It won't be the end, but poses significant challenges."