Nintendo has fallen on hard times. The Wii U remains forgotten in the excitement of the PS4 and Xbox One. The 3DS, while selling well, is still tracking below the DS and will not meet sales forecasts. Many have called for CEO Satoru Iwata to step down, the company to abandon the Wii U and even for Nintendo to exit the hardware business. Well, none of those things are going to happen.
In a letter to shareholders and investors, Iwata put down his foot saying that Nintendo would not back out of the hardware market. “As the business environment around us has shifted with the times, we have decided to redefine entertainment as something that improves people’s quality of life (‘QOL’) in enjoyable ways and expand our business areas. What Nintendo will try to achieve in the next 10 years is a platform business that improves people’s QOL in enjoyable ways.
“We believe that we can capitalize the most on our strengths through a hardware-software integrated platform business, and therefore this type of dedicated video game platforms will remain our core focus.
“With a platform business that improves people’s QOL in enjoyable ways, we will attempt to establish a new business area apart from our dedicated video game business. We have set ‘health’ as the theme for our first step and we will try to use our strength as an entertainment company to create unique approaches that expand this business.”
Back in January Nintendo revealed that they were slashing Wii U sales projections for the fiscal year from 9 million to 2.6 million. As you would imagine, stock for Nintendo plummeted. Hopefully Nintendo will turn this around, though with the amazing sales the PS4 and Xbox One have been posting its hard to see how the Wii U can turnaround.