Nintendo allegedly will end production of its Wii U games on Friday (a claim that the company disputes) as it gears up to launch the Switch in March. The match manufacturer’s follow-up to the super successful Wii, which sold more than 100 million units, should have been another hit, but rather it pretty much flopped. Only about 13 million units of this Wii U, which started in November 2012, were marketed. In actuality, it may have been this last success that caused the Big N to stumble. “In an internal sales representative meeting, a person estimated that we would sell close to 100 million Wii U strategies worldwide,” said Nintendo President Tatsumi Kimishima during the organization’s latest shareholders meeting. “The thinking was because Wii sold nicely, Wii U would follow suit. I stated that, because the Wii had already sold well, we need to clearly explain the attraction of the Wii U if we are to get beyond that and sell the brand new platform, which would be no easy job.” Related: How One Entrepreneur Survived Five Decades of Errors Here is where Nintendo went wrong — and what you could learn from its mistakes.
Customers were too confused about this item. The Nintendo Wii was a phenomenon, appealing to folks who did not believe themselves to be gamers with its first-of-its-kind motion controls at a home console. It was smart for its company to wish to benefit from this machine’s achievement, but the title it picked for its Wii’s successor, Wii U, did not communicate to clients that this was a brand-new device. Meanwhile, the organization’s marketing efforts focused on the tablet-like control, which conveyed to a customers the Wii U was a peripheral, instead of a full sized console. “We feel deeply responsible for not having tried hard enough to have consumers understand the merchandise.” Takeaway: Branding and marketing can sink your company. Always be certain to effectively communicate what makes your product different. It was questionable whether the industry even desired it. The Wii U’s biggest selling point is its tablet-like controller, which makes checking in-game maps or shifting in-game items a cinch. However, with the proliferation of mobile phones and tablets, Nintendo may have been off target with the apparatus from the beginning, because people already had something similar. Related: This $100 Million Business Started With a Series of Happy Accidents Nintendo had been reluctant to put its matches on mobile devices, but changed this year when it announced that Super Mario will make his way on iPhones.
Takeaway: Be aware of market forces outside your business. You may be competing with some thing you would not have thought of as a competitor. Nintendo didn’t create strong partnerships for the Wii U. Not only were clients confused concerning the Wii U, but apparently so were the individuals responsible for selling the device in shops. The obligation falls on a creator to teach its retail partners regarding its own product. “If you went into a retailer and you spoke to somebody in the games section, they didn’t even understand what it was,” explained Christine Arrington, senior matches analyst at IHS Electronics & Media, in 2013. “I did the secret shopper type of thing, and they would say,’Well, there’s no difference between the Wii and Wii U.'” Meanwhile, many of the Wii U’s best games, such as Mario Kart 8, Super Smash Bros. and Super Mario Maker, came directly from the company itself. The system started with a little library, and as sales slowed down, encourage dropped farther. “The issue is the lack of a steady speed of applications launches to motivate the user to drive buzz and engagement and to highlight the vast array of uses of the GamePad,” Nintendo of America President Reggie Fils-Aimé informed Kotaku in 2013. “That is the matter.” The company tried to rectify this issue in the last couple of years, however, it was too late. Connected: Everything You Want to Know About Breaking in the Video Game Industry Takeaway: Your business is dependent upon a community of partners. Ensure they understand what you are doing and are excited about it before reaching out to customers. Despite the Wii U’s struggles, Nintendo had a huge success with its 3DS, that has sold over 60 million units.