Nintendo has verified the existence of a new console system in development as the successor to its aging Wii game system. Nintendo attached that information in conjunction to the announcement of softening sales and profits for the fiscal year ended March 31, 2011. The original Wii has so far sold 86 million units since its 2006 launch. A working demo model will be on display at the E3 trade show in June, where at least some specifications will be announced.
Rumors about the system’s capabilities have already begun before this announcement was made. Among some of the possibilities floated is that the system will pack more powerful hardware than the Microsoft Xbox 360 and the Sony PlayStation 3. There have also been rumors of a 6.2″ tablet-styled wireless controller. The price tag, according to another rumor, could place the system at a fairly steep price of $350 to $400.
Before Nintendo cuts through the rumors with the facts, there is Nintendo’s weak earnings report, which arguably prompted this announcement. While Nintendo generated approximately $12.3 billion in revenue in the fiscal year ending March 31, it still represents a 29 percent decline year over year. In terms of profit, Nintendo’s full-year falloff is even more sharp, with a profit of $946.7 million, a 66 percent year-over-year drop.
Nintendo’s profit and revenue parallels its dipping hardware sales. Nintendo sold more than 15 million Wii units globally in the most recent fiscal year, but that’s down from the 20 million sold in the prior fiscal year. DS sales were down from 27 million to 17 million units during that same time frame. Nintendo is forecasting sales of 13 million Wii units and 11 million DS units worldwide during its current fiscal year. Nintendo hopes to sell 16 million of its recently launched 3D3 units during the current fiscal year, but the launch itself fell short of the mark because it sold 3.6 million 3DS units when it had expected to sell a million units by March 31.
Nintendo might enjoy the prospect of having the marketplace for a next-gen console to itself for a period as long as two years, as Kotaku reported that Microsoft and Sony aren’t planning to roll out new console hardware until 2014.
[Source: CNET]
