The former Atomic Kitten singer discussed the ITV1 show in her latest OK magazine column.
Defending judges Gary Barlow, Tulisa Contostavlos, Kelly Rowland and Louis Walsh, Katona said that the recent ratings decline should not be blamed on the new-look panel.
"When X Factor first began, it was amazing and the singers were phenomenal, but now there's naff song choices and it's lost that special something," Katona said. "I love all the judges but something is just not right.
"If you're going to be a worldwide pop singer, you've got to have the package - have stage presence and be a good singer and a dancer - but this year that is lacking."
On who she would like to see triumph in the current series, Katona commented: "If I had to choose, I'd like Misha B or Janet Devlin to win."
The 31-year-old previously said that Simon Cowell should hire her to judge Britain's Got Talent.
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