Nintendo Forecast for Wii U On a Very Rough Road|
Nintendo’s forecast for Wii U doesn’t appear to be looking up. With the growing popularity of mobile and tablet gaming, the once-revolutionary console has struggled to attract consumers.
Image source: Skynews.Com
Nintendo said that last Friday the sales of Wii U consoles had flopped, pushing it on a third consecutive annual loss. The company said it would not make a profit this year, sending the stock price down by 18.43% on the Tokyo Stock Exchange.
The company also announced that it has revised its Wii U sales expectations from an anticipated 9 million units sold between April 2013 and March 2014 to 2.8 million units during that period -- a 69 percent drop compared with previous estimates. The cuts also apply to Wii U software sales with Nintendo now saying that it expects to sell 19 million units, rather than the 38 million it initially expected.
Nintendo blames the lack of titles for the console's poor sales. “The fact that the 'Wii U strategy' has failed is disappointing and will likely trigger a sell-off as soon as the market opens," said Makoto Kikuchi, chief executive of Myojo Asset Management.
Nintendo President Satoru Iwata released a statement regarding the Wii U’s poor traction:
“Wii U sales, on the other hand, showed some progress in the year-end sales season as we released various compelling titles from the summer onwards, launched hardware bundles at affordable price points and also performed a markdown of the hardware in the U.S. and European markets; however, they fell short of our targeted recovery by a large margin.”
Stiff competition from other rival devices such as the recent release next gen console Sony Playstation 4 and Microsoft Xbox One also has hurt the electronics maker.
The question now remains that what if Nintendo stops making consoles and shifts its focus on creating and developing games for competitors, will they also suffer the same fate that Sega did with its last console?