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Wii U is a Failure Nintendo Admits

Wii U is a failure, Nintendo admitted Friday. Nintendo was once a company that was ahead of the game in console gaming but has taken a noticeable dive in the market.

Wii U is a failure

Image courtesy of Wikipedia

The $300 handheld system launched in November 2012 as a follow-up to the successful Wii console, but it made little impact on consumer sin its first year per PC Magazine.

At first, Nintendo blamed its lacking Wii U sales on a lack of exciting Wii U games. It saw a small boost in year-end sales with the release of “various compelling titles,” Nintendo said, but a major price markdown and the increase of family-friendly games was not enough to save the Wii U, which fell short of Nintendo’s targeted recovery by what President Satoru Iwata called “a large margin.”

“In particular, sales in the U.S. and European markets in which we entered the year-end sales season with a hardware markdown were significantly lower than our original forecasts, with both hardware and software sales experiencing a huge gap from their targets,” Iwata said during a Friday press conference

The only thing the cost reduction did was contribute to Nintendo’s lower sales and profit estimates.

Iwata says the company anticipates 2.8 million Wii U units sold between April 2013 and March 2014, while software sales should hit a low of 19 million units.

Wii U is a failure, but there are whittling sales in other areas such as 3DS sales which are down to 13.5 million (from 18 million), despite recently bragging about “record” 3DS game sales. It likely won’t reach the expected 2 million Wii consoles, instead the company is hoping for 1.2 million in sales.

Nintendo recently formed a partnership with Southwest Airlines to rebuild its street credit.  The company provided more than 100 Southwest passengers with a Wii U console during flights in November.

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