The following video is from Wednesday's installment of The Motley Fool's Weekly Tech Review, in which analysts Eric Bleeker and Jason Moser look at the biggest stories driving the tech sector this week.
This week, an analyst from Jefferies initiated coverage on Nintendo (NASDAQOTH:NTDOY) at "buy." The analyst's buy thesis, says Eric, is that the company is going to miss upcoming earnings so badly -- thanks in large part to lagging Wii U sales -- that the company will be forced to change its strategy. Wii U has struggled out the gate as developers haven't flocked to the system -- choosing to develop for Microsoft (NASDAQ:MSFT) and Sony's (NYSE:SNE) consoles first.
The analyst reasons that once Nintendo changes strategy, it'll be able to succeed in other areas such as smartphones and tablets, as well as make better use of its intellectual property. Is this a crazy buy thesis? In the video, Eric and Jason examine Nintendo's prospects.
The relevant video segment can be found between 3:34 and 8:28.
Eric Bleeker, CFA, and Jason Moser have no position in any stocks mentioned. The Motley Fool recommends Nintendo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.