24/7 Wall Street lists a selection of companies which have seen a significant drop in sales and stocks. Nintendo is listed as number 6 in the list of companies where employees are losing hope.
An insert describes the following; ‘Nintendo’s once nearly insurmountable lead in the video console sector has been lost, and its sales have fallen further and further behind rivals Microsoft and Sony. The rise of the Google Android operating system has also encouraged video game publishers to make more products that run on that platform. The 2010 market share of Nintendo DS fell from 70% in 2009 to 57%. Nintendo’s growth has also been damaged by the rise of the iPad and iPhone. The future is even grimmer. “iSuppli predicts Nintendo will sell 70 million 3DS gaming systems by 2015, a figure that is 21 million less than the 91 million in sales racked up by the original DS at the same point in its sales cycle,” according to the Unofficial Apple Weblog. Nintendo announced an unexpected quarterly loss on July 28 and its shares plunged 20%. The stock is down from a 52-week high of 26,780 yen to 11,850 yen. In late 2007, shares reached 80,000 yen‘.
Are we to conclude from this report that Nintendo are in trouble, or is this just the usual internet scaremongering? Will the upcoming WiiU console be the saviour for the Japanese company? It is understandable that the sudden influx of technology such as the iphone, ipad and the arrival of the Android is certainly putting pressure on Nintendo to bring out the next innovative piece of hardware, but at what cost? Afterall, we don’t know enough about the WiiU to make any assumptions at the moment. However, we do know that when Nintendo brought out the 3DS earlier this year, it did seem rushed and as such suffered from a lack of quality launch titles.Will the WiiU suffer from the same fate as it is rushed out of the door, ready to compete with the other examples of new technology? One would hope that Nintendo learnt something from the 3DS launch.
Realistically, Nintendo may be down on their luck at the moment, but they are certainly nowhere near going under and I can see no reason why the company or employees should lose hope.I believe gamers are looking for quality games at a reasonable price at the end of the day and if Nintendo can provide that then I am sure that the creators of the famous fat plumber will bounce back and go from strength to strength.
Via Techno Buffalo