Print 21 comment(s) - last by epobirs.. on May 10 at 10:25 PM

The gaming company is offering conversion software to app developers

Nintendo isn't seeing a lot of success with its Wii U console, but it's going to try adding smartphone apps as part of a solution. 

Nintendo is trying to make it so users can use smartphone apps on the Wii U console in an attempt to attract more buyers. The gaming company is offering conversion software to app developers so the smartphone games are compatible with the console.

This could potentially help solve some of the Wii U's problems. One issue is that the Wii U wasn't released with many software titles, and smartphone apps can help fill that gap while Nintendo works on releasing new games.

Another issue is that consoles now have stiff competition against mobile games, which are cheaper to buy and easier to play, since they can go anywhere your phone goes. Smartphone apps for the Wii U could allow for cheap game purchases, but the problem still remains that smartphones and tablets are more mobile than the Wii U console -- hence, this likely won't offer a boost in the console versus smartphone debate.

Nevertheless, Nintendo can use all the help it can get. Last month, the company missed profit expectations by 50 percent for the fiscal year (it only made 7 billion yen of the 14 billion yen that it had previously predicted). It also posted a year-over-year revenue drop of 1.9 percent to 635.4 billion yen ($6.4 billion USD) when the company was originally hoping for 670 billion yen. 

To make matters worse, Nintendo only sold 3.45 million Wii Us worldwide for the fiscal year. This just missed the company's projected 4 million in Wii U sales. About 13.42 million units of software sold for the new console as well.

Nintendo expects a profit surge from the 7 billion yen this year to 55 billion yen next year (March 31, 2014) thanks to new games for the Wii U. 

Nintendo President Satoru Iwata said new Wii U titles will be released starting this summer. 

Source: Japan Times

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RE: prediction
By CZroe on 5/7/2013 3:09:40 PM , Rating: 3
I've been hearing the wanna-be market analysts say this for years simply because of what happened to Sega. Nintendo is nowhere near as bad off as Sega was and they likely never will be. I think it's equally likely that they will get their own "Jonathan Ive," break into the tablet and smartphone market themselves, and revamp everything they do with a mantra that works.

Even when people were praising the "intuitive" Nintendo DS in 2004 I was talking about how unintuitive much of the menu and interface design was. Nintendo has compounded these problems over the years, so I hope they turn things around.

RE: prediction
By rubbahbandman on 5/7/2013 3:49:07 PM , Rating: 2
i like how you mention wanna-be market analyst and in the same paragraph make your own wanna-be market analysis. the industry has changed a lot since the sega days - i for one wasn't saying nintendo would leave the hardware business last decade - but exceptional handheld smartphones and tablets did not exist back then.

trust me in <5 years they are out of the hardware biz cus they wont be able to compete (you're already seeing it now with the Wii U) and on the software side the entire smartphone/tablet/xbox/ps4/pc market will simply be too much to pass up.

RE: prediction
By CZroe on 5/8/2013 8:41:44 PM , Rating: 3
And I like how you think that a market analyst can't critique you and call you a "wanna-be" as if your opinion is automatically as valuable as his. Not that I'm a professional market analyst, but you can see the logical contradiction that your amusement requires.

I'm not saying that my scenario is better than yours, I'm saying that your analysis is no better than any of the kiddies saying the same thing for years who barely looked below the surface of the actual dynamics that led to their ONE historical data point, nor did they look deeper at the new ones influencing the current situation. If I do more research and make better predictions, you'd better believe that my analysis bears more weight even if I am not a market analyst, so I *could* call you a wanna-be while taking a stab at my own analysis.

The thing is, that isn't even what I was doing. Lern tu reed. The criticism wasn't that you weren't a professional market analyst, it was in the perceived value you over-confidently ascribe to your musings.

Saying that "I think it's equally likely" is saying that NEITHER of our scenarios has any more merit than the other and, thus, BOTH are just silly conjecture. I am the one that put mine forth as equally UNlikely with no delusions of prophetic accuracy. You wrongly believed I was proposing a counter analysis to yours as if I believed it to be MORE likely. I don't. If you speak English, you should know that "equally likely" does not imply how likely it is and, thus, when describing one of those as being unlikely, it can also be interpreted as saying that both are UNlikely. I was demonstrating the same level of conjecture as you to show the fallacy in BOTH scenarios. Thinking that I was proposing something I thought was likely reflects poorly on your reading comprehension skills.

As for your new attempt at analysis:
Your focus on the Wii U's performance in telling. What we are actually seeing is a shift away from ALL dedicated handhelds and consoles and a stubborn refusal by the traditional console and handheld manufacturers to leave the underpriced hardware, over-priced software/accessory business model. Adding a tablet to the Wii U does not add the utility that consoles lack when compared to an iPad, so it will not appreciably influence consumers who were trending toward that in the casual software running on a smart-anything world. They should have moved into highly integrated do-everything consumer devices a long time ago. Hell, Nintendo should have beat Apple to the smartphone market in the first place.

How the Wii U does against the direct competition is much less important than how they all do compared to previous generations. Their reaction and change in response to clearly different consumption trends is important. The trend reflects their inability to compete with the new markets that siphon casual players.

What can they do to salvage it? I actually think physical copies of games is an advantage for consoles even at casual prices, but console and handheld makers want to charge just as much as ever for digital content too and Microsoft is moving to make physical copies as worthless after purchase as digital copies (tied to a console; only played online). The least they can do is allow transfer of digital content and reverse the trend of including one-time DLC with physical copies and other similar nonsense (3DS Resident Evil w/no way to delete/start over).

Even before this shift I have always said that Collector's Editions and one-time DLC just dampen the true value of good software on physical media. Now it dilutes their primary advantage.

"If they're going to pirate somebody, we want it to be us rather than somebody else." -- Microsoft Business Group President Jeff Raikes

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