It is not something new at all. We have seen, time and again, many people, from video game analysts to economists, criticise what they think will be the console to end Nintendo’s business. It is not a secret that the Wii U has not been doing as well as other consoles, yet Andrea Tse’s attack on The Street feels particularly vicious. The article proposes, among other things, that Nintendo stops producing hardware and instead sells its software to either Apple or Google, as so many other people have done before.
The article goes on to say that Nintendo should completely “scrap its hardware business”, as its problems are “beyond fixing”. The reasons for this, they say, are that
They’re casual-based gaming, which is very big on tablets and smartphones, and hardcore-based gaming, which consists of highly-keen players who are willing to pay up for the Xbox or PlayStation gaming experience. The Wii U’s problem is it’s not powerful enough to compete in the hardcore segment of the market and not cheap enough to appeal to the casual-based gamers. While Nintendo has had more than 30 years of experience catering to the video game market, much of the new generation of casual players, the crucial growth market, is not buying the Wii U and other Nintendo hardware because they’ve already got a more versatile Android or Apple device to tap into for a host of functions, with casual games being just one of them.
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What do you think? Is Nintendo’s hardware business truly doomed? Should they go mobile, as is so often said?