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In today’s edition of information we knew already, Nintendo’s president Satoru Iwata had commented on the company’s sales forecast released today. Seeing as though the company’s financial year ends on March 31, and Nintendo has modified its sales predictions by lowing their sales expectation of the Wii U console. Nintendo had originally predicted they would sell 9 million Wii U units worldwide during this financial year. That number has been cut down to 2.8 million.

That isn’t to say that Nintendo will go out of business soon, The company’s safety net is the Nintendo 3DS as Nintendo sold 13.95 million 3DS handhelds worldwide last year. That is a pretty solid number. The sales were boosted with the releases of the biggest games to come out for the system being Monster Hunter 4 and Pok√©mon X/Y.

It’s no surprise that the WiiU isn’t selling and it’s no surprise that a lot of people are tired of hearing this news about Nintendo. The number one reason is that the system has no games and is riddled with ports from other consoles. You can’t convince me that that’s the sole reason especially since the Xbox One/PS4 sold extremely well solely on the promise of future potential because, if you say it’s the games, then that would be the stupidest thing I’ve heard from another human being this week. As it stands neither of the Xbox One/PS4 have any games worth playing much less worth spending $400-$500 on. So, to me what makes these 2 consoles appealing to the masses is the sole fact that it has and promises pretty graphics, which kind of confirms the misconception that people will want and buy the new shiny things no matter how useless it is as well as the Xbox One’s stupid and unfuncti0ning Star Trek gimmick with the Kinect.

I personally think the console will pick up when Bayonetta 2, Zelda and Smash Bros. 4 comes out. If history is any indicator, the WiiU needs a game with mass appeal in today’s market that will help them. It worked for the Wii, it worked for the 3DS and it could work here too. Only time will tell.

So, where does the company so from here? Do they fire Iwata? Do they sell of their IP to Sony? Do they go mobile?

Please leave your irrelevant opinions about Nintendo’s inevitable doom and gloom in the comments if you want.

Statement:

“As year-end sales constitute an extremely high proportion of the annual sales volume in the video game industry and the annual financial performance of a video game company rests heavily on its performance in the year-end sales season, we put in place various promotional activities in order to promote sales and expand our audience in the year-end sales season of the previous calendar year. However, it is now expected that our sales will fail to meet our previous forecast by a large margin.”

“Giving a detailed explanation on our sales performance in and leading up to the year-end sales season by platform, Nintendo 3DS continued to show strong sales in the Japanese market. The unit sales for Nintendo 3DS in the previous calendar year amounted to approximately 4.9 million units, falling short of our aim of five million units by a small margin. However, as I explained before, given that every gaming device from the year 2000 onwards apart from Nintendo DS and Nintendo 3DS did not reach sales of four million units even in their peak years, we can say that the sales figure for Nintendo 3DS in the last calendar year was indeed very high. However, outside Japan, while its market share increased as we continued to release compelling titles throughout the year, Nintendo 3DS did not reach our sales targets in the overseas markets, and we were ultimately unable to achieve our goal of providing a massive sales boost to Nintendo 3DS in the year-end sales season. Using the U.S. market as an example, Nintendo 3DS became the top-selling platform in the last calendar year, according to NPD, an independent market research company, with its cumulative sales exceeding 11.5 million units; however, the estimated annual sales of the Nintendo 3DS hardware remain significantly lower than our initial forecast at the beginning of the fiscal year. In Europe, while the individual markets showed different results, France was the only market in which we experienced relatively strong sales, and we failed to attain our initial sales levels by a large margin in other countries.”

“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. In particular, sales in the U.S. and European markets in which we entered the year-end sales season with a hardware markdown were significantly lower than our original forecasts, with both hardware and software sales experiencing a huge gap from their targets. In addition, we did not assume at the beginning of the fiscal year that we would perform a markdown for the Wii U hardware in the U.S. and European markets. This was also one of the reasons for lower sales and profit estimates.”

 

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