Nintendo To Make New Consoles After Failure of WiiU Versus PlayStation 4 and Xbox One

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Nintendo To Make New Consoles After Failure of WiiU Versus PlayStation 4 and Xbox One

Instead of purely relying on the ill-fated WiiU, video game maker Nintendo, plans to create new consoles, targeted to new markets. The decision to develop new hardware aside from the WiiU, was reached after it failed to compete with console leaders Playstation 4 and Xbox ONE.

Satoru Iwata, President of Nintendo, told the Bloomberg news agency, that Nintendo is planning to develop new gaming consoles, that will cater to the emerging markets, by 2014. Iwata also said that instead of rebuilding the existing WiiU hardware, the video game company will be designing new console devices, that customers from the emerging markets want.

Iwata explained that ?We want to make new things, with new thinking rather than a cheaper version of what we currently have…...The product and price balance must be made from scratch.”

The move by Nintendo is a big shift away from their usual strategy of releasing a single console for the global market. Coming up with a different console for the emerging markets would mean that Nintendo will focus specific consoles (and probably, games) for certain markets, something that they have not historically done before.

It is clear, analysts say, that Nintendo has been forced to alter their strategy, because of the poor market share results of the WiiU versus the Playstation 4 and Xbox One. The company already revised its sales targets for January 2014, from 9 million WiiU units to 2.8 million, but still fell short, with sales of only 2.72 million.

Total WiiU consoles sold in its entire lifetime are pegged at 6.17 million units. In comparison, 7 Million Playstation 4 consoles were sold in the first six months it appeared on the marketplace.

Nintendo income figures for the fiscal year showed a loss of 46.4 Billion Yen (US$ 457 million dollars). This will be the 3rd straight year that the company has posted a negative P&L statement.

In addition to the future plans of Nintendo, Iwata also shared with Bloomberg, that they plan to develop and release web and mobile apps, to accompany the Mario Kart game franchise. He, however, clarified that Nintendo does not have any intention to launch games for mobile devices.

When asked on why Nintendo refuses to enter the mobile games industry, which is seeing tremendous growth, Iwata replied that ?We have had a console business for 30 years, and I don’t think we can just transfer that over onto a smartphone model.?


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