Nintendo Cuts Wii U Sales Projections, Time for a Price Drop?

Nintendo has reportedly cut its sales projections for the Wii U video game console. Although the company says it sold just over three million Wii U units between November and December 31, 2012, the firm doesn’t expect to sell more than 4 million Wii Us before the end of March, 2013.

Photo credit: wired.com

Back in October, Nintendo said it believed it would sell about 5.5 million Wii U units between November and March.

However, now that projection has been cut to 4 million units. That means the company is cutting its sales projection by about 27 per cent.

Software sales are also troubling. Nintendo says that it sold 11 million Wii U games in November and December, with New Super Mario Bros. U leading the way (2 million sales). That’s good, but what’s not good is this: Nintendo says it has scaled back its software sales projections from 24 million to 16 million units for the November-March period.

That’s a reduction of more than 30 percent.

Worse still, the Big N says that, for the second quarter in a row, it expects to post a loss in operating income.

Therefore, the Japanese firm can’t be too comfortable with the way the Wii U is performing.

So, what’s the problem?

The emergence of rumors regarding the Microsoft Xbox 720 and Sony PlayStation 4 can’t be helping. Reports indicate that those consoles could be unveiled as early as March 2013, with both Sony and Microsoft expected to announce holiday season release dates.

Worse still, the rumored hardware specs for those systems — including 8-core CPUs and powerful graphics processing units — make the Wii U look very last-gen.

Given the situation, maybe it’s time Nintendo considered an early price drop for its Wii U.

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