The continued shortages of the Nintendo Wii could mean that potential consumers will lose interest in a product they cannot easily buy, according to IDC's Billy Pidgeon.
The analyst also believes that Nintendo will continue to struggle to meet demand for the console until 2009.
"I'd like to see Wii hardware shipping in larger quantities or mass market consumers may cool on it. Having said that, I don't believe supply will meet demand for the Wii until 2009," Pidgeon told Home Media Magazine.
The analyst also believes that rival next-generation consoles from Sony and Microsoft are lacking strong software support, which could lead to a loss of market share during the second quarter of 2007.
"Xbox 360 and PlayStation 3 need better system selling games as soon as possible," said Pidgeon.
"Halo 3 will help, as will Lair and Heavenly Sword, but that leaves a hole in Q2 which will be filled by Wii, DS and PSP hardware and software."