Despite optimism from President Saturo Iwata during the company’s Nintendo Direct yesterday, the Japanese video game giant is bleeding console cash at the moment.
While 3DS sales have been strong, Wii U sales have been anything but. Their first quarter worldwide sales totaled only 160,000 units, an embarrassing figure for a newly launched console. Adding fuel to the growing fire, each Wii U console is still selling at a loss; Nintendo has not been able to drive manufacturing costs low enough to make a profit at $349.99.
They are in a dire situation. They need to increase sales but can’t without consistent quality software or a price drop, neither of which is coming soon. And with Microsoft and Sony launching their next-gen consoles in a mere 3 months, things will not be getting any easier for the one-time gaming giant.