Nintendo Will “Likely Miss Profit Goals”
With a lack of interest from consumers and now even more competition than before, Nintendo’s profits are suffering. Overall sales have been lower than expected since the Wii U’s launch. The company states that research and development costs were much higher last year resulting in lower profits. The company remains hopeful that they will reach goals.
“The launch of other video game systems is also good for us because they energize the video game industry as a whole,” Nintendo president Satoru Iwata told analysts. “This year, what Nintendo is promoting is, conversely, to stand out in the game industry for individuality.” These analysts disagree saying that the Wii U platform is no longer what the Wii was, a console with high family appeal. They state that the Wii U is a console for Nintendo fans.
Nintendo aims to sell 9 million consoles this fiscal year, a goal that is getting harder and harder to reach. The fiscal year ends in April of 2014 and in the first half of this fiscal year, Nintendo only managed to sell 460,000 units, a measly 5% of their total. “They refuse to consider that their product is not interesting to consumers”, said one analyst as a reason to Nintendo’s weak sales.