Nintendo reports annual loss, blames Wii U sales

Sagging Wii U sales contribute to Nintendo loss

Sagging Wii U sales contribute to Nintendo loss

Nintendo’s stubborness seems to be taking its toll, as the Japanese company reported its third annual loss with a net income of $229 million in the red. The company points the blame to its failing sales of the Wii U console as the main culprit, selling only 2.72 million units last year. Its flagship handheld console, the Nintendo 3DS, managed to ship 12.24 million units.

In total, Wii U has sold a measly 6.17 million units over a year since its launch. Compare that to Sony’s PlayStation 4 and its reported sales of 7 million after barely five months on sale.

While analysts have said that Nintendo may be ready to ditch its struggling console altogether, the company’s financial report seems to be indicating otherwise. Nintendo’s outlook for the year to March 2015 includes better usage of Wii U’s unique capabilities, including its GamePad touchscreen controller. The GamePad also has a near field communication reader that allows it to interact with compatible devices.

Nintendo is also set to launch a bevy of its propriety titles, including another iteration of Mario Kart and Super Smash Bros. Meanwhile, the console’s uniqueness makes it difficult for third-party game developers to port its titles from Xbox and PlayStation into the Wii U.

And while the Mario brand remains as Nintendo’s perpetual cash cow, the company needs to find another way to attract gamers, especially with mobile becoming the go-to device for casual gaming.

Source: The Guardian

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