Wednesday, May 07, 2014

Console Post: Nintendo (part two)

What I didn't mention in the initial post was Nintendo's forecast for Wii U sales in the next fiscal year: 3.6 million units.

For anyone who thinks there's a turnaround on its way, Nintendo's own forecast should discount that possibility. Selling 300,000 units worldwide a month is dismal, even though it would represent a 33% increase in sales.

Everything in a business revolves around the forecast. Production schedules, marketing dollars, head count--everything. Even if Wii U demand suddenly exploded, Nintendo wouldn't be in a position to capitalize.

More likely, they'll be fighting to not dip under 3 million.

So Nintendo is clearly scaling back their goals for Wii U. The question, though, is how quickly can they get a replacement into the pipeline? And what about the replacement would make a difference, anyway?

Tough sledding ahead.

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