Nintendo struggles with an out of date business model

It may be difficult for those whose toy companies once suffered at the hands of Mario and Donkey Kong to believe but Nintendo is battling changes in how people want to play.  Wii U, the highly touted new gaming system, according to the company, has sold a shocking 70% fewer units than forecasted.  As a result of that bad news and poor showing by other of its products; the company reported a loss of $240 million and as a result its stock value fell 17%.  This is particularly startling when you consider that, as a whole, NPD reported video game hardware and software sales as up 2%.

What is the problem; it seems that Nintendo has bet too heavily on the assumption that console based play could withstand the onslaught of portable play.  Why should a consumer invest in a console when there is so much free or subscription based digital play availalbe on the mobile devices they already own?  Why be tethered to a Nintendo device when you can roam free?  That's why you won't find Mario or Donkey Kong on your iPhone or tablet.

But what about phygital gaming systems like Activison’s Skylander or Disney Infinity, hat in my next posting?

One thought

  1. Actually it’s been a marketing mistake rather than a change is how people play… Just ask Sony …. You still can’t find a PS4.
    Yes, Mario on iPhone might help, but Nintendo needs to release a game machine called a “Nintendo” and release incredible games every month from the get-go.
    Most parents outside Japan assumed the Wii U was just an add on or update…and that giant controller with the screen was a mistake. Look at the PS4 controller…. Almost the same as the first version from the 90s.
    Nintendo needs to release a $200 home system called the “Nintendo” and the consumer needs to find the games they want to play the day of launch with new titles comng out monthly.
    The days of consumers willing to buy a console and then wait 6 years for Zelda is over.

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