Latest News: Technology |  Celebrity |  Movies |  Apple |  Cars |  Business |  Sports |  TV Shows |  Geek

Trending

Filed under: News

 

Holidays key test for Nintendo as Wii U struggles

Dec 20 2013, 8:37am CST | by

10 Updates
 
 

Comments

Recommend Your Tweet as Top Tweet:

Full Story

Holidays key test for Nintendo as Wii U struggles

Holiday season crucial test for Nintendo as Wii U faces off against PS4, Xbox One

TOKYO (AP) — This holiday season Nintendo faces a critical test with its Wii U video game console that is pitted against Sony's PlayStation 4 and Microsoft's Xbox One as it seeks to revive flagging sales.

Analysts say there's a chance for the Kyoto-based company to stage a turnaround as new game releases such as Super Mario 3D World and Wii Fit U could lift Wii U sales. Should lackluster sales persist, the company which shot to prominence in the 1980s with Family Computer consoles and Game Boy portables might be forced to reconsider the core of its business strategy.

Nintendo's business, long associated with the hit Super Mario, Donkey Kong and Pokemon games, has been shaken in recent years as more people play games on their smartphone and tablets. So far Nintendo has been steadfast in its refusal to adapt games for those devices.

The company reported an 8 billion yen ($81 million) loss for the three months ended Sept. 30. Quarterly Wii U sales nearly doubled to 300,000 units from 160,000 in the previous three months, but cumulative sales remained far short of the company's goal of 9 million units for the financial year ending March 2014.

Eiji Sato, analyst at Toyo Securities, said Nintendo needs "killer content" for the Wii U to turn around its business after a weak lineup of game titles added to its woes. That has caught the company in a vicious cycle because developers are reluctant to create games for a poor-selling console.

Most game creators are also pouring resources into mobile games, which are easier and faster to develop compared with those for home game consoles that take more time, energy and expense due to the need for higher quality graphics, said Sato.

Nintendo's management principle has been to increase the population of gamers in the general public. When its strategy works, Nintendo wins big as it did with the motion-sensing Wii in 2007, Sato said.

The Wii U, the successor to the original Wii, reached cumulative global sales of 3.9 million units at the end of September since its launch over a year ago. In contrast, sales of Sony's PS4 reached more than 2.1 million after going on sale Nov. 15. More than one million Xbox One machines were purchased on the first day of sales in 13 countries on Nov. 22.

The arrival of the PS4 and XBox One leaves Nintendo in a "bad place in the console world," said Steve Boxer, a game reviewer for The Guardian and an avid gamer.

"If I was Nintendo, I would be thinking very hard about some means of damage limitation."

On the latest Super Mario 3D World game, Boxer said it is a "very good game with classic Mario-type platform game action, but it doesn't feel like it's something new and fresh."

But Hirokazu Hamamura, president of gaming magazine publisher Enterbrain, said the PS4 and Xbox One consoles are flying off the shelves because their core fans waited up to eight years for these new consoles to come out. And he said their release was accompanied with strong game software.

What has been happening to the Wii U is very similar to the Nintendo's experience with the 3DS, said Hamamura.

The popular Nintendo handheld device had a suggested retail price of $249.99 in the United States when it first became available in March 2011. After weak sales, Nintendo slashed the price to $169.99 in August of that year.

Strong software titles such as Mario Kart and Monster Hunter ensued and "3DS sales exploded," said Hamamura, who points out that Nintendo now has a pipeline of unreleased games for the Wii U.

Since Sept., the Wii U's recommended retail price has been reduced to $299.99 for the 32-gigabyte model in the U.S. It was $349.99 when it debuted in November last year.

Another price cut is a strong possibility for the Wii U if sales stay sluggish, said Sato, the Toyo Securities analyst. Nintendo has 460 billion yen in cash ($4.4 billion) and is prepared to survive a bad sales year or two, he said.

Still, some say it's time for Nintendo to change rather than take comfort in its big cash pile.

"Nintendo should broaden its revenue stream in order to grow," said Tomoaki Kawasaki, senior analyst at IwaiCosmo Securities.

Nintendo has strong software, with hit titles like Super Mario and Zelda, so it may be prudent to make that content mobile while preserving Nintendo's style, he said.

Source: AP

 

iPad Air Giveaway. Win a free iPad Air.

You Might Also Like

Updates


Sponsored Update

Update: 10

GLCs told to provide RM7 billion to develop Bumiputera firms

Source: Malaysia Today

EurAsia Cup presented by DRB-HICOM - Day One
(The Malaysian Insider) – Putrajaya has directed government-linked companies (GLC) to generate RM7 billion in business opportunities for Bumiputera firms this year, Prime Minister Prime M ...
Source: Malaysia Today   Full article at: Malaysia Today 5 days ago, 2:05am CDT
 


Advertisement


Update: 9

Rafizi shows proof of Putrajaya’s hand in contentious carpet-trader loan

Source: Malaysia Today

Eileen Ng, The Malaysian Insider PKR lawmaker Rafizi Ramli today revealed documents to prove Putrajaya interfered in the RM32 million Bank Rakyat loan to ‎controversial businessman Deepak Jaikishan. Rafizi (pic)... READ ...
Source: Malaysia Today   Full article at: Malaysia Today 6 days ago, 2:16am CDT
 

More From the Web

Update: 8

PAS MP claims Bank Rakyat loaned carpet-trader RM215m, interest free

Source: Malaysia Today

(Malay Mail Online) – Controversial businessman Deepak Jaikishan (pic) was given a whopping RM215 million interest-free loan from state-owned Bank Rakyat, a PAS lawmaker alleged today, despite Putra ...
Source: Malaysia Today   Full article at: Malaysia Today Jul 14 2014, 5:52am CDT
 

Update: 7

MRCB, Nusa Gapurna and PKNS settle suit over RM3 billion PJ Sentral project

Source: Malaysia Today

(The Malaysian Insider) – Malaysian Resources Corp Bhd (MRCB), Nusa Gapurna Development Sdn Bhd (NGD) and PKNS Holdings Sdn Bhd have reached an out-of-court settlement over the ownership of ...
Source: Malaysia Today   Full article at: Malaysia Today Jun 21 2014, 2:53am CDT
 

Update: 6

Story behind Syed Mokhtar’s ‘RM2.25 billion tax-exempt’ Bernas deal revealed, says PKR MP

Source: Malaysia Today

(The Malaysian Insider) – An innocuous written reply in Parliament has provided a peek into the cosy relationship between the Najib administration and Malaysia’s best-known businessman ...
Source: Malaysia Today   Full article at: Malaysia Today Jun 15 2014, 12:56pm CDT
 

Update: 5

Constitutional monarchy still murky concept

Source: Malaysia Today

After the RM4.5 billion land sale, the Sultan of Johor secured a 15% stake in MOL Access Portal (MOL) for RM396 million and took a 20% stake in Berjaya Ti ...
Source: Malaysia Today   Full article at: Malaysia Today Jun 14 2014, 12:37am CDT
 

Update: 4

Sultan of Johor’s RM4.5 bil backlash?

Source: Malaysia Today

"GOLDEN ASIA" Tokyo Premiere Press Conference
Has Sultan Ibrahim of Johor’s succession of big money deals over the last six months caused the tide of public opinion to turn against Johor’s royal palace? KiniBiz examines the... READ MO ...
Source: Malaysia Today   Full article at: Malaysia Today Jun 11 2014, 8:49am CDT
 

Update: 3

Putrajaya denies carpet dealer given interest-free loan

Source: Malaysia Today

Eileen Ng, The Malaysian Insider Putrajaya today refuted allegations that Bank Rakyat had allowed carpet dealer Deepak Jaikishan to repay a RM32 million loan without interest following intervention from ...
Source: Malaysia Today   Full article at: Malaysia Today Jun 11 2014, 5:44am CDT
 

Update: 2

Malaysia Spends Over $9 million on MH370 Hunt: Report

Source: NDTV

"GOLDEN ASIA" Tokyo Premiere Press Conference
Malaysia has so far spent about RM27.6 million (over $9 million) on search operations for missing Malaysia Airlines flight MH370, an offi ...
Source: NDTV   Full article at: NDTV Jun 9 2014, 3:12am CDT
 

Update: 1

Bill for Kidex likely to soar to RM3.4b

Source: Malaysia Today

The original RM2.4 billion tag on the proposed highway did not take into account the cost of acquiring the land mostly in the urban areas, claims an assemblywoman Fabian Comelius,... RE ...
Source: Malaysia Today   Full article at: Malaysia Today Jun 9 2014, 2:51am CDT
 

Shopping Deals

 
 
 

<a href="/latest_stories/all/all/30" rel="author">Associated Press</a>
The Associated Press (AP) is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers.

 

 

Comments

blog comments powered by Disqus

Latest stories

Timehop App Review
Timehop App Review
This is a revolutionary invention that brings your nostalgic moments back to life. There are quite a number of events that we may not have vivid memory of; Timehop gives you the ability to precisely dig up your precious moments and even enables you to share them once again with your friends.
 
 
Soundcloud App Review
Soundcloud App Review
Soundcloud is a great Android app that has been developed to give you the ability to listen, record, and share all your sounds with your friends on social media. With this app, you can listen to all the fresh tunes from the largest community of audio creators, bands, musicians and producers in the world straight from the music cloud.
 
 
Top Video News Reports of Past 24 Hours
Top Video News Reports of Past 24 Hours
Watch the hottest video news from the past 24 hours on I4U News featuring Kate Upton, Miley Cyrus, Fifty Shades of Grey, Star Wars Episode VII and Dota 2.
 
 
Katherine Webb posts hot Bikini Photo
Katherine Webb posts hot Bikini Photo
Katherine Webb posted a very hot bikini photo on Instagram. See the pic below.
 
 
 

About the Geek Mind


Read more about The Geek Mind.