Yesterday, Nintendo stock tumbled 12% after the company posted a quarterly loss of $324 million and a 50% decline in sales. Along with the losses, Nintendo responded to poor sales of their latest flagship mobile gaming device, the 3DS, by cutting its price from $250 to $170. For a company that a few years ago was setting the world on fire with incredible sales of the Nintendo Wii, DS and its variants, this has to be a huge hit to morale.
But where did Nintendo go wrong?
I think the answer is quite simple: the iPhone. Nintendo completely failed to envision the impact that the new generation of mobile phones would have on their bottom line. And no, it’s not just because people prefer and iPhone to a 3DS, or even DS Lite. The rise in the iPhone doesn’t alone account for troubles with the future of the Wii and the utterly confusing Wii U, which Nintendo unveiled at this year’s E3 expo. No, the iPhone is simply the device that proved Nintendo fallible; Nintendo’s was a self-inflicted wound right from the start. Click to read more
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