Skip to main content
  1. Tech
  2. Games
  3. Consoles

Wii U causes Nintendo stock to stumble by 15 percent due to poor sales

See also

It went from the probable over this weekend, to the certain on Monday. Nintendo’s stock fell 15 percent to 12,445 yen, the biggest intraday plunge since 2011. Now the pressure is on Mr. Iwata, literally. The embattled President of Nintendo must address its shareholders in the coming weeks. On the actions he and the rest of his management team will take to boost sales and stop the hemorrhaging of money in light of the quarterly losses.

President Satoru Iwata should concede defeat with the Wii U, shut down production and open up Nintendo's iconic software characters such as Zelda and Super Mario to the smartphones, tablets and consoles that have made a shambles of his strategy, Nintendo should exit hardware altogether.”-Michael Pachter, an analyst with Wedbush Securities

The consensus amongst media outlets, points towards Nintendo leaving the hardware business entirely and strictly cater to software development. However, this may just be the wrong direction to take. Great software does move hardware, but the hardware also has to compliment the software from all development parties for it to truly succeed.

The culprit of Nintendo’s troubles is the Wii U, undeniably at this point. The Wii U hardware design, general capabilities and lack of product differentiations with its predecessor are the key reasons why it’s not flying of the shelves. It’s not the 3DS portable console which is putting up respectable hardware and software sales numbers, amidst stiff competition from Apple, Android and Window Phone.

Underselling consumers has finally caught up with Nintendo, Sony and Microsoft with their powerful new consoles have successfully crushed the Mario Bros. maker. Killing off the Wii U console as Mr. Pachter recommended, is the best course of action at this point. Licensing Nintendo key franchises to mobile is the best way for Nintendo to return to profitability, while they go back to the drawing board and develop a true next generation console.

Advertisement

Don't Miss

  • Massive
    Ubisoft Massive exclusive: 'The Division', PS4 & Xbox One, Activision to Ubisoft & more
    Camera
    Games Exclusive
  • iPhone
    Get your wallet ready: The next iPhone could cost $100 more than your last one
    Video
    Tech Buzz
  • Civ
    Need to catch up on 'Sid Meier's Civilization'? Here is everything you need to know
    Camera
    Games Feature
  • Google Glass
    See how Google Glass is letting sick kids go to the zoo without leaving the hospital
    Tech News
  • Upcoming
    These are 2014's biggest PS4, Xbox One and Wii U games
    Camera
    Games Feature
  • Google
    Google has filed for a patent to develop contact lenses capable of taking photos
    Video
    Headlines

Related Videos:

  • Nintendo Announce a Drop in Price for Five 3DS Games
    <iframe width="560" height="315" src="//www.youtube.com/embed/2KVX82n2UzY?VQ=HD720&amp;autoplay=1"></iframe>
  • ‘Disney Magical World’ now available on 3DS
    <div class="video-info" data-id="518122082" data-param-name="playList" data-provider="5min" data-url="http://pshared.5min.com/Scripts/PlayerSeed.js?sid=1304&width=480&height=401&playList=518122082&autoStart=true"></div>
  • Disney Magical World Review
    <div class="video-info" data-id="518122082" data-param-name="playList" data-provider="5min" data-url="http://pshared.5min.com/Scripts/PlayerSeed.js?sid=1304&width=480&height=401&playList=518122082&autoStart=true"></div>

User login

Log in
Sign in with your email and password. Or reset your password.
Write for us
Interested in becoming an Examiner and sharing your experience and passion? We're always looking for quality writers. Find out more about Examiner.com and apply today!