Nintendo: Beginning of the End?

After more than half a century as a leader in the video game industry, Nintendo is in trouble. Revenue has fallen in fiscal year 2014, and stakeholders have been getting antsy over Nintendo’s recent string of blunders. The Japanese conglomerate let its weaknesses grow, failing to address even the most prominent issues, until they grew too big to ignore. Now, the company faces some hard choices, and needs to take a good look at the hole they dug themselves deep into. Have they learned from their mistakes? And what were those errors in judgement, anyway?

An evolution of Nintendo controllers (Source)

In 2012, Nintendo launched their new handheld console, the Wii U. Opening sales were dismal, but not unexpected: Nintendo’s 2011 console, the 3DS, required a significant price drop (from $249 to $169) and the release of a beloved franchise game, Pokemon X and Y, to gain momentum. By 2014, the 3DS sold 43.33 million units, and 12 million copies of Pokemon X and Y. Nintendo assumed that with new games added to the repertoire, more consumers would flock to the Wii U. The reality was much more grave.

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