While everyone has suffered in the UK market, it is clear that Nintendo has suffered more than either Sony or Microsoft in the past year. [...]the decline in Wii software is eight times larger than the increase due to the introduction of the Wii U. [...] the timing of the Wii U launch so late in the Wii's life has all but guaranteed a very rough generational transition. The company appears to have abandoned the Wii too soon and now the Wii U is stumbling out of the gate.
A similar story is playing out with the transition from the Nintendo DS to the 3DS. [...]
Back in 2010, Nintendo accounted for around 20 percent of the revenue for these publishers. That fell to 17 percent in 2011 and then only 12 percent in 2012.
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By contrast, every other segment is seeing growth: the Xbox 360 revenue is up 18 percent since 2010 while revenue on Sony's PlayStation platforms has gone up 16 percent. That other segment, which contains PC video game revenue, revenue on mobile platforms, and (in the case of Activision Blizzard) all those Skylanders toys, has more than doubled in value, up over 140 percent in just two years.
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Nintendo has a rough road ahead of them this year. [...] They need third party developers out there putting the Wii U right at the top of their big software projects. The Wii U's exclusive features will need to be touted loudly and often [...] Nintendo needs to beat the drum for the third party titles every chance it gets, and build strong relationships to last them through a full console cycle. Really, they should have started that years ago.