Nintendo Co. Ltd (
fans will not be able to play the new installments of either
or Activision Blizzard's (
Call of Duty (COD)
on Wii U. This is a serious blow for Nintendo, considering that it
has limited video game offerings developed by other publishers.
Ubisoft recently stated that the upcoming
Assassin's Creed: Rogue
will not be launched on Wii U due to lower sales of the previous
version. Per Ubisoft, Nintendo Wii U sales represented only 3% of
its revenues for the fiscal year ended Mar 31, 2014. Post the
, Ubisoft will not release any mature game on the console.
Although Activision's reason is not yet official, it seems intent
on gaining market share on the new generation consoles from
) and Sony. The COD developer is set to launch
Call of Duty: Advanced Warfare
in November this year on Xbox One, Xbox 360, PlayStaion 4,
PlayStation 3 and personal computers.
Despite being in the market for a much longer period than
Microsoft's and Sony's next-generation consoles, Wii U's failure
has been primarily attributed to growing preference for smartphones
and tablets as well as lack of compelling third-party gaming titles
on the platform.
Wii U reported dismal sales in the recently concluded first
quarter, despite strong sales of
Mario Kart 8
(released in May). The worldwide sales of Wii U hardware and
software were only 0.51 million units and 4.39 units, respectively.
Nintendo has a strong product pipeline that includes the likes of
Captain Toad: Treasure Tracker
Super Smash Bros.
The Legend of Zelda
for Wii U. However, we believe that the lack of hit games like COD
will continue to negatively impact Wii U's growth prospects in the
Nintendo should also rethink its policy regarding developing gaming
titles for other platforms including Apple's (
) iOS as well as Google's Android in the near future. This will not
only expand its market share but also help to revive its
profitability over the long term.
Currently, Nintendo has a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
APPLE INC (AAPL): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis
ACTIVISION BLZD (ATVI): Free Stock Analysis
NINTENDO LTD (NTDOY): Get Free Report
To read this article on Zacks.com click here.