"The only key hardware device to underperform our expectations was the Wii U numbers and its fortunes appear unlikely to improve for several months, even if Nintendo decides to drop price, as there are an insufficient number of core titles that are generating interest in the console," Pachter said.

The Wii U starts at $300 for an 8GB version, jumping to $350 for the 32GB Deluxe model that includes a copy of .

Like Pachter, GameStop chief financial officer Rob Lloyd said in February that the platform .

Significant first-party titles for the Wii U are on the way, including a .

Pachter said core gamers are "far more likely" to turn their attention to the PlayStation 4 and the next Xbox, which is believed to be and on sale alongside the PS4 this holiday. Moreover, the long-term appeal of the Wii U will be "severely limited" by the perception that the PS4 and next Xbox will be more capable devices, he argued.

On top of this, if Sony and Microsoft decide to sell their next-generation platforms on a price-competitive level with the Wii U, this could spell even further trouble for Nintendo, Pachter said.

"Should the new consoles from Sony and Microsoft be price competitive, we think that Wii U sales may continue to stagnate," he said, noting that Microsoft may offer a subsidized Xbox 720 that could be introduced at a lower price than any other console in history.

Overall, Pachter said he expects March industry sales for the United States to be up 1 percent thanks to the release of a handful of high-profile games like .