Can things get any worse for Nintendo? Its first-quarter earnings were a major disappointment, with net sales down 50.2 percent and gross profit down 84.3 percent, compared with the same period the previous fiscal year. Sales of its five-month old 3DS game console were absolutely dismal — a mere 710,000 units sold in the April-June quarter — prompting the company to shore up the product line by cutting the price to a loss-leading $170 per unit. Sales forecasts for other products, such as its Wii home game console and DS handheld device have also been lowered.
I think Nintendo's problem is its target age group. Younger target kids lose interest very fast. Its great when they are interested in your product because they get their parents to fork out lots of money for hardware and games. But I think the Wii has peaked long ago, and the Game Boy with 3D is just stupid on a small screen. Not to mention the high price. My wife teaches 4th grade and kids that age already play Xbox360 and Playstation games. Yes, they are adult rated but you know how that goes with parenting these days. Unless Nintendo can relate their products to a much wider audience. They are doomed.
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Nintendo Bails Furiously but the Worst May Be Yet to Come
Posted by: Erika Morphy July 29, 2011 03:05 PMCan things get any worse for Nintendo? Its first-quarter earnings were a major disappointment, with net sales down 50.2 percent and gross profit down 84.3 percent, compared with the same period the previous fiscal year. Sales of its five-month old 3DS game console were absolutely dismal — a mere 710,000 units sold in the April-June quarter — prompting the company to shore up the product line by cutting the price to a loss-leading $170 per unit. Sales forecasts for other products, such as its Wii home game console and DS handheld device have also been lowered.