Article by Fisher Investment
8:20 PM – June 8, 2011 – By Kevin Parrish – Source : Reuters
Nintendo’s market shares dropped to pre-Wii levels after the reveal of its upcoming Wii U console at E3 2011.
In previous reports we revealed that the gaming industry is currently walking on uncertain ground uncertain because the expected next phase didn’t take place as planned thanks to the release of Apple’s iPhone and the introduction of apps. Gamers discovered that cheap, bite-sized games can be just as enjoyable, and then began to flock around free social games like FarmVille which don’t require a hefty purchase, outrageous hardware requirements or installation on the local drive.
So for a while developers and publishers have wondered “what’s the next phase?” Even recently The Sims creator Will Wright admitted that it’s foolish to develop a game longer than a year because the “rate of change is increasing almost exponentially.” There have even been fears of another gaming market crash if another round of consoles doesn’t appear or if the industry doesn’t shift over to socialization and monetization.But as seen on Tuesday, Nintendo wants to serve up another round of consoles. And why not? That’s been its gig since the late 1970s. Gaming executives are now reportedly banking on the Wii U’s success to reignite the $ 65 billion video games industry that has steadily declined in profit over the last few years, leading some to speculate an eventual crash. Wedbush analyst Michael Pachter even thinks Nintendo is now ahead of the curve for once, revealing that its upcoming platform