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New Wii successor to be displayed at the E3 Expo this June

Nintendo announced today that it will be releasing a successor to the Wii system, and it will be on display at the E3 Expo in June.

The Nintendo Wii is a home video console that features a wireless controller called the Wii Remote, which can detect movement in three dimensions. This form of gaming revolutionized how consumers interacted with video games by allowing users to move along with characters on the screen. The Wii launched in November 2006, and broke the record for best-selling console in a single month in December 2009. 

But that isn't the case anymore. Nintendo has had to compete with other consoles like the PlayStation 3 and Xbox 360 from the start, but since the Wii's release, Sony and Microsoft have released motion-detecting accessories of their own. In September 2010, Sony launched the PlayStation Move for PS3, and in November 2010, Microsoft launched the Kinect for Xbox 360. Both feature motion-sensing game controllers and webcams much like the Wii. 

In addition to increased competition, the strength of the yen has affected Nintendo's profits as well. According to reports, Nintendo has "large cash deposits and other assets in foreign countries," and when these deposits and assets are converted to yen for net figures, Nintendo loses a lot of money because the yen is so strong while other foreign currency remains weak.  

In October 2010, Nintendo reported a $24.7 million net loss. Now, the video game giant is reporting a quarterly profit of 12 billion yen, or $146 million USD, which is not so great since Nintendo reported a profit of 59.9 billion yen last year. 

According to the consolidated results for the fiscal year ending March 31, 2010 and March 31, 2011, net income is down 66 percent for the quarter. The operating profit fell 52 percent from 356.8 billion yen to 171.1 billion yen.

But Nintendo is staying optimistic thanks to the recent launch of the Nintendo 3DS. In fact, the company expects to see an annual profit climb of 42 percent on the new gaming device. In its first week, Nintendo sold 400,000 3DS systems. 

"We are very satisfied with this start and we look forward to the momentum that we will build on Nintendo 3DS with the launch of the E-shop, the launch of the 3D trailers for Hollywood movies and the launch of 'The Legend of Zelda: Ocarina in Time' in mid June as well as the launch of Netflix later on in the summer," said Reggie Fils-Aime, Nintendo of America president. 

Now, Nintendo has even more to look forward to with a Wii successor due to launch in 2012. 

"As for the details of exactly what it will be, we have decided that it is best to let people experience it for themselves at E3," said Satoru Iwata, Nintendo CEO. "So I won't talk about specific details today, but it will offer a new way of playing games within the home."

The Wii's successor will be available on display at the E3 Expo in Los Angeles, California from June 7-9. 

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RE: They won.
By omnicronx on 4/25/2011 12:28:46 PM , Rating: 2
I think it would be foolish to argue that Nintendo is in 'dire financial shape', but dropping from a multi billion dollar quarter to barely staying in the black is not exactly amazing news either.

I would also like to point out that the software sales are much closer than it would seem. Nintendo's numbers are padded quite a bit with Wii sports sales that come with the console. While both other consoles also do come packaged with games in certain situations, its not nearly as prevelent as the Wii. I.E a good 70 million of those software sales really should not be counted. (at least 86 million wii sports games are being counted here)

As a result, over their lifetime both the 360 and PS3 could potentially approach if not surpass the Wii in sales.

Not having any great third party titles was the only real negative for Nintendo this time around, they could have easily wiped the floor a few times over had they truly had the support of third party devs...

RE: They won.
By Reclaimer77 on 4/25/2011 12:51:41 PM , Rating: 1
I think it would be foolish to argue that Nintendo is in 'dire financial shape', but dropping from a multi billion dollar quarter to barely staying in the black is not exactly amazing news either.

I did not mean that to say they are going to close the doors soon. Simply put, they don't have the capital to get into a next gen console shootout with the big boys, and yes, their profit stream just got cut in half. Which doesn't help.

I don't think people understand just how small Nintendo really is, fiscally.

RE: They won.
By augiem on 4/27/2011 10:13:54 PM , Rating: 2
They were whole a lot smaller back in 2006 when they decided to again compete with "the big boys". They stood no chance in hell back then, but they did it. Nintendo is a very focused company. They're not the megaconglomerates that are Sony and Microsoft. But they've stood the test of time and competed with many a giant in their days. No, they're not always on top, but they're still around and that says a lot.

"We shipped it on Saturday. Then on Sunday, we rested." -- Steve Jobs on the iPad launch

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