Nintendo will introduce a new software for Wii U operating system to use smartphone applications. It will allow downloading and browsing such app on its game console. This new induction may decrease company financial loss. It will enable them to develop new game consoles around new title from customer’s feedback according to Japan Times report.
World changing environment and technological race is benefiting few companies. On the other side, many old companies are facing troubles in terms of sales and operating loss. Being in pace with race is important. Business analysts do not take this step as quiet game changer to turn loss into profit. Let us see what second quarter of sales prove.
Nintendo is facing worse financial situation. Game consoles are main product of company. And from last 3-4 years, tabs and feature rich phones increased much in demand. They offer lot more options of game and other entertainment options.
Changing technological scenario is main factor in continuous drop in sales of leading Japanese company. Nintendo president Satoru Iwata said that company will release new games of Wii U starting from next year. The current projects in pipeline are Pocket Monster series which is schedules to be released in October 2013. Game supports 3D images and 3DS devices.
One thing goes in favor to game’s leading company. That it will develop its own software library that will run smartphone applications on its game consoles. Code will act as parser to play the existing applications. It will also support development of games by open source community and game developers to target Nintendo consoles.
The current library of games is not rich. It is also a major factor in loss of annual sales and continuous decrease in profit from last 2 years. It is possible that current steps can give Wii U’s customer a trust factor again to stay with it products and pursue for the next ones.
Business statistics by financial statement confirm that the sales of company net sales dropped from 647,652 million yen to 635,422 in March 2013. The percentage is negative 1.9 in 2013 which was minus 3.62 in last year. Cost of sales also surge from 493,997 to 495,068 million yen. Gross profit decreased. While net operating incomes is negative since last two years.