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Investment site, The Motley Fool, is reporting that Logitech’s recently unveiled iPhone controller, the PowerShell, could ultimately mean the death of Nintendo. The publication says that Apple’s devices versus Nintendo’s showed in a recent study that there are 126 million mobile gamers, where as Nintendo has sold 35 million 3DS consoles worldwide. It’s also worth mentioning the website expresses their views on the Nintendo 3DS and how Nintendo is ‘dependent’ on it.
“But Nintendo’s reliance on handheld gaming is dangerous, and potentially fatal. With Logitech’s new controller, Apple’s phones could finally get the sorts of the games that attract core gamers. When that happens, the reasons to own Nintendo’s handheld will plummet… Nintendo sells the Wii U at a loss, which has weighed on earnings, and last quarter, caused Nintendo to report an operating loss of about $200 million. Nintendo’s management expects the company to have sold 9 million Wii Us by the end of next March, but that won’t happen..”
Gaming After Hours Perspective
It’s true that the Nintendo is struggling in the console space and they are selling the Wii U at a loss, but so are Microsoft and Sony, which the article forgets to mention. At this time, we don’t know how much of a loss Microsoft and Sony are selling their system at a loss but knowing their past, it is far more of a loss than what Nintendo is losing in comparison.
Reggie Fils-Aime explained that it only takes one Wii U game sale to make the console profitable for Nintendo.
“The business model doesn’t change dramatically, in that as soon as we get the consumer to buy one piece of software, then that entire transaction becomes profit positive.”