It’s no secret that Nintendo has had a rough past couple of years, but Interbrand, a division of the brand consultancy firm Omnicom, recently dropped Nintendo’s brand status by 33%. That’s a pretty large decline in the grand scheme of things. Interbrand says the reason for the drop is due to Nintendo’s recent lack of product sales and the rise of competition from all-in-one devices like smartphones.

Here’s Interbrand’s entire explanation regarding the matter:

“Nintendo continues to provide safe fun for families, but has not remained relevant to the “smart world” gamers who now demand edgier entertainment. Significant volumes of Gaming entertainment have moved away from dedicated gaming consoles and hand-held devices (like Nintendo’s DS) to all-in-one devices like smartphones and tablets. Wii U, the brand’s biggest launch for several years, has suffered from weak sales since its birth in 2012, largely attributed to the limited number of games offered, as well as market dynamics.”

“After three years of decline, Nintendo is yet to clearly articulate how it will respond to the challenge of smart devices and the prevailing “free-to-play” games model. However, the recent lifting of the 14-year games console ban in China (estimated to be the world’s third largest market) presents a growth opportunity-although Nintendo will have to tackle the issue of bootlegged software, customized hardware, and fierce competition to gain a real presence in the country.”

“Nintendo’s amiibo is a collectable figurine line with built-in memory that was created to encourage shared gaming experiences between real friends, rather than those of the virtual variety. However, Nintendo is effectively playing catch-up with a market already crowded with similar products like Activision’s Skylanders and Disney Infinity. The company’s core fanbase remains committed to the brand and vocally defends it, which is clearly an advantage. However, despite this enthusiasm and the quality of its games, Nintendo needs to deliver a more relevant and impactful brand experience to change the perception and demonstrate clearly that its exciting innovations are still to come.” — Interbrand

What do all of you think about this development? Is Nintendo essentially at the end of its rope, or do you think the company still has the potential to redeem itself in the years to come? Let us know your thoughts in the comments below!

Source: Interbrand

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