Michael P. Hogan, Executive Vice President of Strategic Business & Brand Development has explained to investors that holiday 2013 will be the key to the success of Wii U. Hogan also cited that a lack of games was the main reason why its PowerUp rewards members hadn’t invested in the console. Hogan said that they are excited about the number of new games from Nintendo, and they see the potential for significantly improved performance this fall and holiday.
“We’ve been asked a number of times about the performance of the Wii U and how that factors into the model projections. In previous versions of the model, we assumed the success rate for the new 2013 consoles, the Sony and Microsoft consoles, at 80% to 85% of prior generation. Based upon what we knew at the time however, we had modeled the Wii U at a much lower multiple of prior generation sales for both hardware and software. Thus, we already had very conservative assumptions for the Wii U. And at launch, the Wii U exceeded those expectations. They all since then have been softer, but the key will be holiday 2013 performance.”
“It is worth noting that in our PowerUp Rewards consumer research, the No. 1 reason consumers give for not yet purchasing the Wii U is the limited number of new games for this console. Post E3, we are excited about the number of new games from Nintendo, and we do see the potential for significantly improved performance this fall and holiday.”