Nintendo is not invincible after all
kek | July 31, 2009It looks like the global recession is finally catching up to the dominant Nintendo. Nintendo recently released its quarterly earnings, and they are only making 1/3 of what they made a year ago. Sales across their portfolio has declined. The biggest surprise is Wii sales have decreased nearly 50% compared to last year. It also doesn’t help that the value of the Japanese yen rose significantly in recent months, affecting Nintendo’s earnings overseas. (This also goes for Sony as well who may be in worse shape than Nintendo.)
However, as much as Nintendo could try to point its finger at the lagging economy. When you think about it, 2009 will only be remembered as the year of lackluster titles. Many video game publishers and studios are pushing their flagship 2009 titles to 2010. The only titles I can remember this year is Infamous for PS3. The 2009 holiday season also looks bleak. The only “big” games coming out this holiday season are the usual music games from Rock Band and Guitar/DJ/Band Hero franchises. Call of Duty: Modern Warfare 2 is also on track for its November release. In this economy, consumers are going to be more selective about their game purchases. This is especially true if consumers own multiple consoles (like me). The last video game I pre-ordered was Fable 2. Currently, I acquired most of my games used or via trade.
There is always a silver lining. Nintendo sold 5.9 million DSi units and 2.2 million Wii units. I’m sure Sony would love to sell nearly that many units of PSP and PS3.
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