Japanese gaming giant Nintendo (TYO:7974) reported its first loss in 30 years last week, with sales of its major consoles around the world slipping, contributing to a loss of $534.6 million. Similarly, its rival Sony (NYSE:SNE) is not seeing the type of sales it would have wanted with its new PlayStation Vita, which is being outsold in some regions by its preceding console, the PSP.
It goes without saying that Sony and Nintendo no longer just have to worry about each other, as smartphone and tablet devices – with better digital distribution for consumers – have changed the game considerably in recent years.
Looking at console sales in Japan [1] over the past eight years or so (see interactive chart below), you can see that recent efforts by both Sony and Nintendo have failed to replicate their past successes. While the 3DS did achieve a decent sales bump thanks to a sharp price cut, it has likely passed its peak.
Sony’s PlayStation Vita will likely take the torch from the PSP, but again, I don’t foresee it bouncing back to the heights that the PSP once enjoyed.
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Figures are from Media Create. ↩