Nintendo Co. is withdrawing from its $77 billion mobile gaming empire as per a report by Bloomberg. This decision is the aftermath of the disappointing end-results that ensued after the onslaught of the Novel Coronavirus.
In 2017, following the release of Animal Crossing: Pocket Camp. Later Nintendo Switch decided that it wants to deepen its roots with more mobile development after seeing the colossal success of both the games.
Moe details regarding the Decision
President Shuntaro Furukawa indicated two years ago that smartphone games would be a $1 billion business with new growth potential, adding on to his predecessor’s promise that Nintendo would release two to three mobile titles each year.
This made a huge buzz in the gaming environment as an array of investors were excited and instilled hopes. But little did they know that in the month of May, the company has pivoted itself with a new strategy. The company recently said, “We are not necessarily looking to continue releasing many new applications for the mobile market.”
This strategic move of retreating from mobile development was due to the Wii U’s failure to sell well. Also, their other games are not doing so well that is they are stagnant with no growth as per their sales figures.
Now their utmost priority has been shifted solely to their console games. As their new mobile games like Super Mario Run and Mario Kart Tour have not performed well as per Nintendo’s Expectations. Mario Kart on mobile garnered huge success. However, after its launch, it had received pivotal updates, but it succumbed to garner critical acclaim of Mario Kart 8.
In a press release, DeNA Co. president Isao Moriyasu says,
The studio, which has developed many of Nintendo’s mobile games. It does not anticipate releasing a new app from the publisher until near the end of the 2021 financial year. The piece also suggests that Nintendo has been disappointed by the limitations of mobile game design, and the fact that they’re limited to touchscreen controls.Isao Moriyasu
Last, Nintendo’s Switch abrupt withdrawal from smartphone games is not a result of disappointing revenues but also by the hindrances of the platform. The company believes that its games will garner more success only when its equipped with Nintendo approved controllers. Also, the company has never supported the limited touchscreen interface of a phone.