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Nintendo Co., Ltd: Can software save the Wii U?

  • September 2014
  • -
  • MarketLine
  • -
  • 31 pages

Summary

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Introduction

The Wii U, Nintendo's latest home console, has failed to live up to the success of its predecessor, the Wii, and the company's financial performance has been poor since its release in 2012. This case study analyzes Nintendo's recent financial woes, and assesses the company's efforts to get its latest home console back on track through the utilization of its strong character and software IP.

Features and benefits

* Analyzes Nintendo's recent financial and sales performance.
* Assesses Nintendo's efforts to reverse the fortunes of the Wii U.
* Explores Nintendo's utilization of strong character and software IP in its efforts to save the Wii U.

Highlights

The Wii U has been unable to offset declining revenues following the shift away from Nintendo's previous home console, leading to a net loss in FY 2014. However, Nintendo's handheld business is in a much better state than its home console operations, and the company's revenue mix has shifted towards handheld software and hardware.
Nintendo is looking to leverage the strength of its existing IP in order to boost sales of the Wii U, and the company is focusing on two key Wii U entries into historically popular franchises in 2014 – Mario Kart 8 and Super Smash Bros. for Wii U – the latter has already had a successful launch.
Nintendo has announced new software that takes advantage of the Wii U's unique GamePad to produce compelling gameplay experience in order to boost the console's appeal. Additionally, Nintendo has announced amiibo, a 'toys-to-life' platform that enables Nintendo figurines to interact with selected software through the GamePad's NFC capability.

Your key questions answered

* Why has the Wii U lost momentum since its launch in 2012?
* What is Nintendo doing to reverse the Wii U's slide?
* What titles are in Nintendo's software pipeline, and how do they reflect the company's strategy?
* How can the amiibo platform help to bolster the Wii U's appeal?
* How has Nintendo sought to ameliorate declining third party software support for the Wii U?

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