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.
