Next-Generation PS4 and Xbox 720 Will Isolate the Wii U

Nintendo is no longer capable of keeping up with Sony or Microsoft, according to analysis firm Screen Digest, which believes that the upcoming consoles from the two companies – the PlayStation 4 and Xbox 720 – will leave the Wii U isolated on the market.

Nintendo may have been the first company to release a new home console on the market in the last few years but, seeing as how the Wii U is comparable in terms of power with the PlayStation 3 and Xbox 360, research firm Screen Digest believes that it's going to become isolated on the market once new devices are launched by Sony or Microsoft.

"We believe Nintendo looks increasingly isolated in the market. It does not have the luxury of a wider device ecosystem play such as Sony, Apple or Microsoft and it is behind the curve in its online and cloud content strategies," Screen Digest's Piers Harding-Rolls told Edge.

In order to further promote the Wii U, Nintendo should emphasize taking its brand and sharing it with other devices, like how Microsoft or Sony are doing.

"We would like to see Nintendo be more aggressive in 'hinging' off its devices using its online platform - Nintendo Network - onto third-party devices as Microsoft is starting to do with Xbox Smartglass and Sony is doing with PlayStation Mobile."

"Neither of these solutions is significant at present but it does show that these companies are willing to engage users on the most popular third-party connected devices to drive relevance for their own products."

What's more, the analysis firm is also expecting next-generation platforms to be offered with a subsidy, much like mobile phones, in order to keep the price down and attract more people.

"This will keep the platforms relatively competitive," Harding-Rolls said about the subsidy mechanic. "Nintendo will be late to adopt a subsidized pricing strategy but could be forced to examine it if Microsoft and Sony push forward with it."

As of yet, neither Sony nor Microsoft has confirmed its upcoming home consoles, although rumors and speculation deem a certainty the fact that they'll be announced this year.