supernihilist said:
Nintendo is NOT in decline. WiiU is a failed product. Thats it, they will move on and be successful again with ease. |
The thing is in the home console market Nintendo has been in decline for several generations. NES>SNES>N64>GC. If anything Wii was a blip on the radar and Wii U is actually a return to form in home consoles. What has kept Nintendo safe over the last few decades is handhelds. Gameboy and gameboy advance were both highly successful, both of them outselling their contemporary home consoels by large margins. And then there was DS, when all comes out in the wash it has probnably outsold PS2, but in any case damned close and so a humungous success.
3DS got off to a bad start, Nintendo had to cut the price to the point they were losing money on hardware. It's stayed low and Nintendo felt the need to put out a supporting, cheaper sku (2DS) to boost sales. And for the first time Nintendo released a home console which sold at a loss. making the negative growth in handhelds quite a problem, because they don't have a highly profitable platform to subsidise the unprofitable one. Hence a number of quarters of losses.
Nintendo lost the big spending console gamers to PS (who went and lost quite a few to XB), and despite Wii's apparent success they haven;t figured out how to get them back. And now handhelds face their first ever serious competition in phones and tablets, and so the handheld market is shrinking too.
Nintendo's cash reserves are keeping them healthy for now, but their situation is pretty serious. They need to live off their income not their savings.
“The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.” - Bertrand Russell
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