The Nintendo Wii U was just released this past November, but some analysts believe there are already some changes the company needs to make to the system.
"In a negative scenario, Nintendo will be forced to prematurely lower the Wii U price, and over the course of this cycle, we expect consideration will be given to extending first party franchises to other platforms.
"I think the pressure is on Nintendo to deliver better momentum with consumers in the next 9 months; some view into the next holiday title lineup would help," Sebastian said.
DFC Intelligence's David Cole said Nintendo going the software only route is a bad idea and that last year was a disaster for the company.
"Going the way of Sega and only doing software is simply not the best route. But if they are going to do hardware they need to do some marketing for that hardware.
"Nintendo's performance the last year was a disaster. It was almost like they rolled over and played dead with less than zero marketing for both the Wii U and the 3DSXL. This is something that can be changed.
"I don't understand what their thinking was, but in an age when consumers are clamoring for portable/tablet hardware it would seem to be a huge opportunity for Nintendo.
"Nintendo used to be great at marketing hardware and if they could bring that back I think there is opportunity," Cole said.