Amidst the success of the PlayStation 4 and Xbox One hardware sales, Nintendo's Wii U is struggling to move units a year later. The console doesn't have a clear audience and the company has made some questionable decisions when designing it, causing people to wonder if Nintendo even has a future in making its own hardware.
They would like everyone, including their shareholders, to know that they do. Nintendo has stated in a letter to shareholders and investors that they aren't abandoning hardware creation, and see the hybrid hardware-software platform we've known them for as the way forward for the future.
Iwata stated, "We believe that we can capitalize the most on our strengths through a hardware-software integrated platform business, and therefore this type of dedicated video game platforms will remain our core focus."
The Nintendo console, which was at first believed to be slightly more powerful than last-gen consoles but is actually stronger than people gave it credit for, has not been selling well. The PlayStation 4 has already sold over 5.3 million units in just a few months, seemingly already beating out the Wii U.
Iwata outlined their philosophy in the letter stating, "As the business environment around us has shifted with the times, we have decided to redefine entertainment as something that improves people's quality of life ('QOL') in enjoyable ways and expand our business areas. What Nintendo will try to achieve in the next 10 years is a platform business that improves people's QOL in enjoyable ways.
"We will attempt to establish a new business area apart from our dedicated video game business. We have set 'health' as the theme for our first step and we will try to use our strength as an entertainment company to create unique approaches that expand this business."
For better or worse, Iwata has sent a direct message to the industry: Nintendo won't be going anywhere in the console market, and are adjusting their strategy to achieve success in the same way they have for more than a decade.
Source: IGN
