Nintendo admitted to the Wii U not living up to its potential. They admitted that sales haven't been all that great and that they've had to downgrade their forecasts for the early half of 2014. Things don't look good at all for Nintendo... or at least, that's what the media would have everyone believe.
I can't really say why there's so much hate for the Big 'N', maybe it's because they don't indulge in all the graphic violence and nudity like their competitors, or that they decide to do things differently instead of constantly mimicking a competitor to degrees of nearly becoming indistinguishable. But whatever Nintendo did to piss off the masses, they did it well.
The thing is, we've had articles all popping up in lieu of Nintendo's recent forecast, stating that Nintendo needs to sell off their console department and whore out their brands like Sega or Zynga. There are calls for Iwata's job. There's all these finicky posts about resignations and closures, even though Nintendo is still worth more than Sony, which speaks volumes about the management and value of one company over the other.
We have Forbes saying that the Wii U's sales move Nintendo close to “Game Over”. DualShockers is reporting that JP Morgan has downgraded Nintendo following the fiscal reports. Canada pulls a quote from Bloomberg that Nintendo could consider “smart devices” as the doom and gloom of their sales would prompt them to exit the dedicated gaming sector.
GamesIndustry.biz has quotes from Michael Pachter detailing how terrible a position Nintendo is in, but he's slightly more reasonable than some of the other doom-sayers, ironically, mentioning that...
“Nintendo's proprietary software continues to be first rate, but its console hardware is not competitive; the Wii U is under-powered relative to next generation offerings from Sony and Microsoft, and is not competitively priced (priced similar to current generation offerings from the competition). We don't think Nintendo should exit the console hardware business, but think it should consider getting out of the Wii U business, and consider going back to the drawing board on consoles. Nintendo has a console in the marketplace that isn't working, and if it continues to tilt at windmills, its software sales will suffer."
Pachter also mentions that Nintendo needs to start porting their software to the PS4 and Xbox One to stay competitive. Essentially becoming as worthless as Sega and Atari... wait, do those two even still make relevant games these days that aren't centered around controversy?
Okay, enough of the bull crap. Let's be real.
The Nintendo 3DS, as reported by Shack News, was still the top selling dedicated game device of 2013. Exiting the hardware race would be blatantly stupid. Nintendo is profiting from their portable handhelds and they don't have to pay any royalties for having their own software on their own hardware. If they decided to become third-party software publishers (or developers) they lose all of the profitable leverage they have right now. Blatantly speaking: Only an idiot would throw out machines that generate money for them every month on end.
Historically, though, the Nintendo 3DS wasn't always a monkey-maker. In fact, its first year on the market was 4.5 million units sold, as reported by BGR. Unsurprisingly, that's around the same number that the Wii U managed in totality of its first year on the market. But that's too much common sense for the current market trend of hating on the Wii U, right?
But all this doom and gloom and blaming Nintendo for the downgraded forecast isn't really their fault. If you think about it, they were betting on third-party to kick in throughout 2013 to help flesh out the Wii U's software palette. That didn't happen.
Instead, there was a lot of ridiculously childish politics that the Wii U incurred from third-party publishers.