As if we need further proof that the handheld industry is in the middle of an upheaval, Nintendo experienced its first revenue loss in 30 years. Today, Nintendo expanded their 2011 total loss forecast to 65 billion yen. They were expecting to lose 20 billion yen. Ouch.
If you’re wondering how much that is in US dollars: it’s a lot.
In Nintendo’s announcement today, they laid the blame squarely on the under-performing 3DS. Outlets like Bloomberg are going further and drawing correlations to the absolutely jaw-dropping quarter Apple had.
Is it really that easy? Is Nintendo doing poorly because people love their iPhones, iPod Touches, and iPads? While Apple has become an interesting contender to Nintendo in the handheld space, I don’t think that’s the only factor here. Nintendo’s hit Wii console has pretty much reached the point of market saturation, with sales falling regularly every month. Fortunately, Nintendo is ready to answer for the set-top console side of the video game arena.
In a statement made to Reuters, Nintendo President Satoru Iwata confirmed that the company’s upcoming Wii-U would be available worldwide by the end of the year. More specifically, “in time for the holiday shopping season.”
What would you like to see from Nintendo regarding their handheld strategy? Clearly the 3DS isn’t cutting it.