Nintendo’s task: The Wii, again, more, better

June 10, 2011|Barbara Ortutay, AP Technology Writer
  • Nintendo senior brand manager, Carrie Feigel, right, and Nintendo England representative Chloe Zak, dance with the Nintendo Wii game Just Dance 3 on the floor of the Nintendo booth at the 2011 Electronic Entertainment Expo in Los Angeles, Wednesday, June 8, 2011.
Nintendo senior brand manager, Carrie Feigel, right, and Nintendo England… (AP Photo/Damian Dovarganes )

The upcoming Wii U — part tablet computer, part game machine — could help Nintendo surpass its rivals once again.

Yet investors so far are skeptical, with unknowns such as the price. The company’s stock has fallen 10 percent since the Wii U’s unveiling this week. Expectations for the new machine have been high following the original Wii’s roaring success.

Wii U, which will go on sale next year, features a motion-sensing controller with a tablet-like touch screen and high-definition graphics.

Of these, only the tablet screen feature will be unique to the Wii U. Sony Corp.’s PlayStation 3 and Microsoft Corp.’s Xbox 360 already offer high-definition and motion controls.

Scott Steinberg, CEO of video game consulting company TechSavvy Global, said people were expecting an innovation that’s “so far ahead of the competition that it can position Nintendo as a leader again.’’

Instead, he said, people got “a whimper, not a scream.’’

Then again, people were also skeptical in 2006, when Nintendo Co. went against conventional wisdom with its Wii. The quirky, cheap game console relied not on high-end graphics and complex buttons to lure in hardcore players, but on simple motion controls to lure in everyone.

The Wii’s then-revolutionary technology lets players stand up and bowl, play tennis and drive a virtual car simply by flailing a wand in front of their TV. It has sold more than 86 million units, at least 30 million more than either the PlayStation 3 or the Xbox 360.

Whether Wii U will replicate the Wii’s success or fade like the Virtual Boy (if you don’t remember it, it’s for good reason) will depend largely on its price.

Nintendo will also have to convince customers that they need another dedicated gaming device in the age of iPads, Facebook and “Angry Birds.’’

“People are getting harder to impress,’’ Steinberg said. “They are expecting more for the money. They already have a number of systems in their home that are performing well.’’

With Wii U, Nintendo is catching up with its rival console makers by offering a system that runs high-definition graphics, an essential feature in 2011. Sony and Microsoft also began selling their own motion controllers late last year.

The Wii U’s tablet-like controller, however, is novel. Although Nintendo says the idea behind it came long before the iPad’s debut in April 2010, the ensuing tablet craze couldn’t hurt.

Wedbush Morgan analyst Michael Pachter called the console brilliant and believes Nintendo will have no problem selling it, as long as it costs less than $300.

“I was really, really surprised at the stock price reaction,’’ Pachter said. “I thought it was really cool.’’

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