Report: “The Wii U Faces Some Potential Problems”

A Research and Markets report outlines the past successes and failures of Nintendo, in addition to the imminent challenges the company must face.

An excerpt from a recent report from Research and Markets has outlined some of Nintendo’s successes, failures, and obstacles over through the past few generations down to the next-gen. The report commented that Nintendo proved to be innovative but also had some self-inflicted wounds. In addition, this research found that Nintendo’s next gen system, the Wii U, was a response to the tablet and smartphone market but may be threatened by price, competition, in addition to other factors.

The Research and Market excerpt opens by summarizing with the following statement, “Prior to the launch of the Wii, Nintendo faced many challenges in the home console market. However, the Wii disrupted the market in 2006, achieving success by employing revolutionary control methods, bolstering revenues, and expanding the company’s consumer base. Having lost momentum, the Wii has been superseded by Nintendo’s Wii U, which further innovates gaming, but faces future challenges.

The report continues by pointing out that although the Wii had major success, Nintendo’s legacy and market share was being threatened by tablets. In turn, Nintendo’s new, next-gen system “serves as both an innovation and reaction to the movement of casual consumers from dedicated gaming devices to tablets and smartphones.

With the Wii being left behind and the advent of the Wii U, the excerpt listed several positives and negatives of the new system with the following bullet point list:

  • The Wii experienced shortcomings as well as success
    • The Wii has been overpowered by its competition
    • The Wii struggled to attract dedicated third-party support and mature games
    • Unlike its competitors, the Wii has not become a home entertainment hub
  • Nintendo is looking to address the Wii’s issues with the Wii U
    • The GamePad represents further innovation and a reaction to industry trends
    • The Wii U marks an attempt to recapture the hardcore market
    • Nintendo is hoping to broaden the Wii U’s appeal through online and multimedia capabilities
  • The Wii U faces some potential problems
    • The retention of the Wii brand is a double-edged sword
    • The pricing of the console marks a key turning point in Nintendo’s strategy
    • The competition is moving quickly this time around

When all was said and done, the report concluded that although Nintendo faces challenges in the future, the company has been both innovative and successful in the console market.