Nintendo has confirmed its next-generation Wii U gaming console hasn't been a hit and is having a "negative impact" on the company.
The gaming market is going to heat up, as Microsoft and Sony are about to release their next-gen consoles to gamers around the world. Nintendo has already released its competitor to the Xbox One and PlayStation 4 with the Wii U. Unfortunately for Nintendo, the Wii U is not seeing the kind of sales the company scored with the original Wii.
Nintendo got a jump on Sony and Microsoft by launching the Wii U in November 2012. The company would launch its next-generation gaming console a year before its rivals. Nintendo wasn't going to mess with what made the Wii a hit with consumers. The new gadget used the same motion controls of its predecessor and brought a few firsts for Nintendo, but not Sony or Microsoft.
The Wii U improved upon the Wii and finally brought high-definition graphics to a Nintendo gaming console. Nintendo also jumped on the popularity of tablets by including a 6.2-inch touchscreen built into the Wii U's GamePad controller. The GamePad serves double duty: it acts as the console's controller, as well as second display. You can play games on your television or use the built-in screen to make your Wii U gaming experience a little more mobile. Despite all of its new tricks and early entry, Nintendo has been struggling to sell the Wii U. The company has only sold 3.8 million Wii U consoles since launch compared to over 100 million Wii units sold.
In an effort to spur sales, Nintendo gave the Wii U a price cut from its original $349 to $299 in September, which also coincided with the launch of The Legend of Zelda: Wind Waker HD. A price cut and the Zelda game have helped Nintendo almost double sales in the second quarter, but the company is now publicly admitting its next-generation console is a sore spot, revealing it has only sold 460,000 units in the last 6 months.
"The Wii U hardware still has a negative impact on Nintendo's profits, owing mainly to its markdown in the United States and Europe," Nintendo acknowledged in a statement it just released.
As Microsoft and Sony get ready to unleash the Xbox One and PlayStation 4 just in time for the holidays, Nintendo obviously isn't expecting a Christmas miracle for the Wii U. The company's other console, the portable Nintendo 3DS, continues to be a hit and sold 3.89 million units last quarter, serving as a reminder of why the company is still in the game.
