Nintendo's recent woes continue. The company already posted its first loss last year, and more recently has suffered slow sales of its Wii U console. And now here's one of its partners putting the boot in.
In an earnings call with investors, Activision Blizzard CEO Robert Kotick has said he's "somewhat disappointed with the launch of the Wii U." Not only that, his company is also facing "challenges from slower-than-expected adoption of the Wii U."
Just last month, Nintendo released figures that said the console had only sold 3 million units. Admittedly the original Wii's sales were about equal at the same time in its lifespan, but that was because Nintendo couldn't make them quick enough to satisfy demand. The Wii U has left potential customers confused and a little apathetic.
Nintendo isn't ready to give up though. It has a raft of classic titles waiting in the wings that should help it gain momentum. Legendary Mario creator Shigeru Miyamoto is convinced that once people get the console in their hands, they'll be sold.
Nintendo has also refused to drop the price, despite acknowledging the console is struggling. "With Wii U, we have taken a rather resolute stance in pricing it below its manufacturing cost, so we are not planning to perform a markdown," company president Satoru Iwata said in a statement.
Iwata admitted Nintendo hasn't "fully communicated the value of our product" but that it'll "try to do so before the lineup is enhanced and at the same time work to enrich the software lineup which could make consumers understand the appeal of Wii U."
I don't want to sound harsh, but if people need help understanding the appeal of your product, you've done something wrong. We're in a post-iPad age here, where it should be self-evident what each gadget does. I think the Wii U's real problem is a lack of killer titles. Let's hope Nintendo can sort it out sharpish.