
Sales of video games in the United States have been on a steep decline over recent months. The reason? Nintendo. Cowen and Company analyst Doug Creutz states that Wii software sales “have been trending down 50 percent year over year, and have been for the last 12 months”. Creutz says that consumers have started shifting over to mobile phone and Facebook games which has left Nintendo, and the video game industry, reeling.
“Everybody needs to realize that the Wii software segment is trending down 50 percent year over year, and has been for the last 12 months. That is a massive decline. There’s no way you could not have a decline overall with that big of a decline in that portion of the software.”
“Ten years ago, Nintendo largely catered to kids and Nintendo fanboys. There was about a five year period they could expand their market beyond that, and now I think they’re back to the kids and Nintendo fanboys again. It’s not a bad market but it’s not a market that’s going to grow enormously.”