Saturday, June 11, 2011

Nintendo Wii U Faced Unrealistic Expectations from Investors


COMMENTARY | Apparently, investors are not quite sure what to make of the recently unveiled Nintendo Wii U, which is weird because critics and gamers seem to know exactly what the innovations brought forward by the console can do for the gaming industry. Nintendo stock is falling despite the official announcement of a ground-breaking home entertainment console.

Critics seem to love the full 1080p resolution, which will grant the Nintendo Wii U graphical capabilities on par with other major consoles and literally blows the original Wii out of the water. Perhaps investors expected more of a major improvement in home gaming, the fall of the stock price indicates lots of folks were expecting a lot more than Nintendo delivered.

Nintendo's stock is down 10 percent since the official announcement of the Wii U. Gamers and critics seem to be something of a polar opposite to the financial folks. For the most part investors just cannot see the difference between the Wii U and other gaming platforms like tablets and phones. The Wii U is a ground-breaking take on traditional games. Offering up different views of the action simultaneously is a huge accomplishment, but perhaps the controller with a six inch touch screen was a bit too cutting-edge for investors.

Gamers on the other hand, realize a great deal of difference between the two platforms. Playing a video game on a four inch or ten inch screen is much different than playing a game on the fifty inch LED TV in the living room. While the Nintendo Wii U will have some great Nintendo characters behind titles right off the bat, the big news for Nintendo fans is the third party developers that are lining up to see what they can do with the new technology. Sure Zelda and Mario can sell games, but so can Tekken and Ghost Recon.

While the situation may be a clash of opinions, Nintendo would have had to deliver the greatest console the world had ever seen to satisfy investors. When the original Wii was released motion based gaming was unheard of, tablet gaming has unfortunately been around for a bit. What investors do not seem to get is that having the console interact with the tablet is new ground. The Nintendo Wii U will probably not see any middle ground, as far as sales are concerned. Yes, price will matter a great deal, if the console retails for over $300 it may be tricky getting it into the hands of gamers.

While investors could be scared of another Virtual Boy type failure, the Nintendo Wii U looks promising. Nintendo has invented a console that is still friendly to casual gamers, but also has the horsepower to appeal to dedicated gamers. This could be the console everyone has been waiting for.

Jason Gallagher is a former travel professional and long-time Pennsylvania resident. These experiences give him a first-hand look at developing situations in the state and everything included in the travel industry from technology to trends.

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