But even the GameCube, largely seen as the third horse in a new race against Sony and Microsoft MSFT -1.51%, was a financial success for Nintendo. But even if the companys glory days have passed to some degree, this is still a corporation which has posted only one loss since it began publicly reporting earnings in 1981. Thats a remarkable success story, spanning over three decades. (And, of course, Nintendo is a much older company which has weathered many changes in technology.)
While the Wii U is still fairing dismally, Nintendos 3DS handheld system is the top performing video game system on the market. This fact offsets the Wii Us troubles to some degree, and at the very least buys Nintendo time to figure out what to do next.
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Imagine the graphics of the Wii U on an updated version of the 3DS (or some new DS machine) and then pair that with some sort of small receiver that allows you to play all your handheld games on any TV. There are Android devices that do this already, of course, but they only play Android gamesnothing even close to par with Nintendos first-party offerings.
You see something similar with the PS Vita from Sony. You can play your PS4 games on the go and then switch right back over to the PS4 when you get home. But thats still two distinct systems which will cost you over $600 plus tax. The nVidia SHIELD operates on a similar concept, but again lacks the sort of specific, exclusive software support that Nintendo can bring to the table.
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Is it possible that letting go of first-party exclusivity would lead to higher Mario sales? Maybe. But Nintendo cant do that and keep the 3DS alive. Its an all or nothing proposition. And Nintendo would have to be very short-sighted to abandon something as lucrative as its handheld market simply because its struggling at the moment in the living room wars.
http://www.forbes.com/sites/erikkai...he-hardware-business-regardless-of-the-wii-u/