© alexan24 dreamstime.com Electronics Production | November 12, 2012
Wii U launch: Sell-Out not a true indicator of long-term success
Nintendo’s latest games console, the Wii U, makes its global sales debut in the U.S. on November 18 and is forecast to outperform the sales of the hugely popular Wii in its opening months on the market.
Pent-up demand from Nintendo evangelists, many of which were introduced to the console market through the success of the Wii, is predicted to drive this explosive start. By the end of December 2012, consumers worldwide are expected to have snapped up 3.5 million Wii U consoles, compared to the 3.1 million Wii consoles that were bought over a similar sales period at the end of 2006, according to IHS Screen Digest insights from information and analytics provider IHS (NYSE: IHS). Based on expectations of shipped Wii U units and overall consumer activity, IHS believes this will lead to supply shortages over the holiday shopping season, leaving some shoppers empty-handed and having to wait until the new year to satisfy their need for the next-generation Nintendo product. "As a result of the tight inventory control Nintendo employs to manage its supply chain and strong consumer demand in these opening weeks of launch, we believe it's highly likely that retailers will experience some Wii U shortages in the run-up to Christmas. Stock will be replenished in ongoing fashion, but some unlucky shoppers may well miss out," said Piers Harding-Rolls, senior principal analyst, head of games at IHS. Translating Wii U launch performance into longer-term success will be a major challenge With the landscape of games distribution and consumption altered significantly since the launch of the original Wii, IHS believes that translating this launch sales momentum into Wii-type success will be significantly harder to achieve. As shown in the attached figure, IHS forecasts that Wii U sales over the first four years of its life are expected to reach around 70 percent of the Wii's sales volume in the corresponding time frame. Nintendo Wii and Wii U Sales Nintendo should be laser-focused on consumer engagement in order to remain relevant. In 2006, the Wii brought to market gesture-based controls that no console had used before. Its device innovation, coupled with new and interesting social and lifestyle software, ensured the platform became a word-of-mouth and mainstream success. Nintendo's strength of innovation and first-party content have driven consumers to buy a formidable 92 million Wii consoles worldwide since its launch. There is no doubt the Wii U underlines Nintendo's credentials as an innovator, introducing the first dedicated and fully integrated second-screen game experience to the market. Yet the fragmented landscape for games consumption and the proliferation of always-on, connected devices, means that product innovation alone is not enough to stay relevant to today's mainstream consumer. “This time around, Wii U's pure innovation, coupled with a limited volume of high-quality Nintendo software, will not be enough to drive the ongoing sales momentum we witnessed with the Wii console, especially at a higher price point,” said Harding-Rolls. “Long-term success depends on ongoing consumer engagement delivered through the constant release of high-quality content from both first and third parties, a competitive non-games entertainment proposition and a sound digital and online strategy to go along with such innovation. Nintendo is still some way short of delivering a comprehensive engagement-led value proposition at the launch of the Wii U." Nintendo addresses its weaknesses Nintendo's recent strategic announcements show a company that has identified its weaknesses and is willing to adapt in order to remain competitive. The Wii U games lineup for the launch window features more third-party developers than Nintendo has had for its consoles in the past. The company has also partnered with 3-D game engine provider Unity to encourage new games developers to come on board, and it has additional titles in the pipeline to keep content fresh as the new year progresses. Nintendo is also focusing needed attention on its digital and online strategy with its own upgraded store and community platform. "How the company executes on these new initiatives will have a substantial impact on the Wii U's ability to maintain its market relevance past the launch phase when competing with the burgeoning choice of connected devices that serve games content to consumers," added Harding-Rolls.
GM: Detroit-Hamtramck to be EV assembly only GM announced today a USD 2.2 billion investment at its Detroit-Hamtramck assembly plant that will make it the automaker’s first facility completely dedicated to EV auto assembly.
Indra opens massive radar factory as it concentrates its manufacturing The new factory, located in San Fernando de Henares, will concentrate the company’s entire radar manufacturing for civil and military use.
New production lines installed at ESCATEC Penang Several new production lines are being set up at the company’s main facility in Penang, which hosts ESCATEC Electronics (EEM) and ESCATEC Medical (EDM).
Greg Grace takes the helm as MD of Incap Estonia Greg Grace has been appointed Director, Operations Estonia, and Managing Director of Incap Electronics Estonia, and member of Incap Group’s Management Team.
NA semi equipment industry posts December 2019 billings North America-based manufacturers of semiconductor equipment posted USD 2.49 billion in billings worldwide in December 2019 (three-month average basis), according to SEMI.
NOTE increases deliveries to Hövding Hövding 3, the latest version of the company’s airbag helmet, is fully ramped up at NOTE’s plant in China.
Eguana inks deal for residential energy storage systems Eguana Technologies Inc. has entered into a development contract with an unnamed renewable energy company to develop and certify proprietary residential storage systems for distribution through its sales channels across global markets.
BlueRing Stencils picks up Stone Mountain Tool BlueRing Stencils has acquired Georgia-based tooling supplier Stone Mountain Tool.
Bosch increases its stake in fuel-cell expert Ceres Power Bosch has increased its stake in Ceres Power from 3.9% to circa 18%. Bosch’s total investment in the company will be approximately 90 million euros.
Haldex Heidelberg staff urges management to reconsider the closure It was back in October of 2019 that Haldex announced that it was streamlining its production in Europe, a decision that would see the move of production from Heidelberg in Germany to Szentlörincskáta in Hungary.
Foxconn’s Gou: WI plant operational this year Foxconn Technology Group founder Terry Gou is indicating that the company’s new manufacturing facility in Mount Pleasant, Wisconsin, still currently under construction after multiple slowdowns, will generate products beginning this year.
Zentech acquires Trilogy Circuits LLC Zentech Manufacturing has acquired Texas-based Trilogy Circuits LLC, a provider of EMS services to military primes and other high-reliability industries in Texas and across the United States.
Markus Jeck to take lead of Enics Switzerland EMS provider Enics has appointed Markus Jeck as the new General Manager of Enics Switzerland.
Hanwha Precision Machinery launches tech centre in Germany Hanwha Techwin Automation Americas' – formerly Samsung C&T Automation – unit, Hanwha Precision Machinery, has launched an integrated tech centre for Europe in Germany to accelerate its global expansion.
TTM Technologies to sell four China manufacturing plants TTM Technologies is executing a definitive agreement under which the company has agreed to divest its four China manufacturing plants – which make up substantially all of the assets of its Mobility business unit.
Incap acquires AWS Electronics EMS provider Incap has signed an agreement to acquire 100% ownership of AWS Electronics Group.
Ampleon, Rochester Electronics ink deal RF power products supplier Ampleon and semiconductor manufacturer Rochester Electronics have forged a strategic partnership to extend the global supply of Ampleon’s VDMOS portfolio of high-performance RF transistors.
Trust Automation appoints new COO California-based Trust Automation Inc., a supplier of automation technology for industrial and defense applications, has welcomed Teddy Ross to the company as chief operations officer, effective immediately.
TDK Ventures invests in SLD Laser TDK Ventures Inc., a subsidiary of TDK Corporation, has invested in SLD Laser, a specialist in the use of gallium nitride (GaN) in the commercialization of visible laser light sources for multiple applications including automotive, mobility, medical, and specialty lighting.
Sono Motors hits its target - community funding works The Munich-based mobility provider Sono Motors has successfully completed the extension of its campaign to finance the company and has exceeded its target of EUR 50 million.
New group structure at Mycronic aimed securing future growth Swedish creator of production equipment, Mycronic, has grown quite a bit during the last years; both organically but also through acquisitions. And with that growth some structure is in order.
Zenuity and HP Enterprise team up to develop next-gen autonomous driving cars Hewlett Packard Enterprise (HPE) has been selected by Zenuity, a Swedish developer of software for self-driving and assisted driving cars, to provide the crucial artificial intelligence (AI) and high-performance computing (HPC) infrastructure it needs in order to develop next generation autonomous driving (AD) systems.
Honeywell, Lockheed Martin win NASA contracts Honeywell and Lockheed Martin have both announced recent contracts for the supply of key components to NASA’s Orion spacecraft fleet for the upcoming Artemis lunar missions.Load more news