Nintendo seems to know that they are not the favourites in the console scene at the moment, and reflected that by cutting its annual Wii U sales forecast from 9 million to 2.8 million units. This dramatic swing in product revenue could well put the company into losses, and steps are being taken to stop the ship from sinking.
At a recent conference attended by Bloomberg , Satoru Iwata seemed to share that sentiment:
"We cannot continue a business without winning. We must take a sceptical approach whether we can still simply make game players, offer them in the same way as in the past for 20,000 yen or 30,000 yen, and sell titles for a couple of thousand yen each.
We are thinking about a new business structure. Given the expansion of smart devices, we are naturally studying how smart devices can be used to grow the game-player business. It's not as simple as enabling Mario to move on a smartphone."
As for what restructuring and damage will be done to Nintendo has yet to be determined, but any announcements will be made during its third-quarter financial results at the end of this month.”