Can the New Mario Kart 8 Save Nintendo's Wii U?

The struggles of Nintendo's (NASDAQOTH: NTDOY  ) Wii U console have been well documented. The company held fast to pie-in-the-sky sales projections despite all evidence to the contrary, finally cutting the projections before the earnings release that would reveal the console's real figures (leading to not only an apology, but also pay cuts for key executives). Many wrote the console off early, and signs point to it merely being a footnote in the history of gaming.

There is a small glimmer of hope, however. Even though it's unlikely that anything could make the console a major hit at this point, there are a few potential "must have" games with the potential to grow Wii U sales. One of these, Mario Kart 8, is set to be released on May 30. Will people buy a Wii U just to play the latest "Mario Kart" game, though?

Building on a legacy
Nintendo's "Mario Kart" franchise is one of its more popular offerings, and each of the company's consoles since its debut has received only one entry in the series. Mario Kart Wii, the most recent version, sold 300,000 copies on release day in Japan alone, and had sold over 35 million copies worldwide as of the end of 2013. Given the game's replayability and loyal fanbase, Nintendo is hoping that the new game's release will be a tipping point for Wii owners who haven't purchased a Wii U yet.

Source: Wii U UK

In Europe, where Wii U sales are practically nonexistent, Nintendo is significantly increasing its marketing of Mario Kart 8 in hopes that the popularity of previous games in the series will spur console sales. In addition to the standard edition of the game, the company is releasing a limited edition version that comes with a "Blue Shell" figurine and is also releasing a special edition bundle.

Online play may encourage upgrades
Mario Kart 8 is a beautiful game, both graphically and in terms of how it seems to take some of the most popular features from previous games and combine them seamlessly. More importantly, though, it offers something that was considered one of the mainstays of Mario Kart Wii: online play. This is significant, since online play for Mario Kart Wii and other Wii-era games is ending on May 20 (which is conveniently 10 days before the release of Mario Kart 8).

This means that for those who want to play "Mario Kart" online, they will need to either play Mario Kart 7 on the Nintendo 2DS/3DS or purchase Mario Kart 8 when it comes out. Nintendo is obviously hoping that customers will opt for the latter, and at least some fans will. It's speculated that Amazon.com had to temporarily halt its preorders of the game because it had already allotted all of its ordered inventory; if this is the case, it bodes well for the game's release sales figures.

In case you forget that it's a Nintendo system
Positive buzz for Mario Kart 8 and anecdotal evidence about preorder sell-outs certainly has the game looking like the biggest hit to date for the struggling Wii U, and it very well could encourage console sales (though to what extent remains to be seen). When you add in the upcoming Smash Bros. Wii U title, there's a good chance that 2014 will be the best year that the console has had. The company's trying its best to increase the appeal of the system on the back of major first-party titles that are finally starting to come out, not only bundling popular games with consoles but also introducing new accessories that play up the "Nintendo" feel of the system.

Source: Nintendo Europe

In addition to the "Mario," "Luigi," and "Princess Peach" Wii Remotes that the company has released, a "Yoshi"-themed Wii Remote is scheduled for release alongside Mario Kart 8 (in Europe at least, but the controller will likely see release in the rest of the world as well). While there has been no word on additional themed controllers, it's possible that Nintendo will release similar accessories alongside future "Zelda" games or as tie-ins to other major franchises. The intention is obviously to cater to the loyal Nintendo fans who didn't see a reason to upgrade from the Wii; it sends a message that the new console is fun, and when paired with games like Mario Kart 8 it may help to sell a few extra accessories.

Is the Wii U just spinning its wheels?
Mario Kart 8 will likely be the biggest hit on the Wii U to date, but that doesn't necessarily take a lot. Between it and Smash Bros. there will probably be at least somewhat of a surge in Wii U console sales simply because both games are popular, fun, and have great replayability both online and offline. The biggest fans of the franchises will likely break down and buy a Wii U if they haven't already, especially if they can get one of the games bundled with the purchase. That will provide the console with some growth and a larger install base to take advantage of its eShop and other existing games.

The problem is that there's a limit to this growth potential. Mario Kart 8 may draw in some gamers who haven't played previous games in the series, but for a lot of people it simply won't be enough to justify buying the Wii U. Nintendo's system will keep limping along until its next hardware release, but even the great-looking games that are set for release soon likely won't be enough to turn its fortunes around.

Are you ready to profit from this $14.4 trillion revolution?
Let's face it, every investor wants to get in on revolutionary ideas before they hit it big. Like buying PC-maker Dell in the late 1980s, before the consumer computing boom. Or purchasing stock in e-commerce pioneer Amazon.com in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hyper-growth markets. The real trick is to find a small-cap "pure-play" and then watch as it grows in EXPLOSIVE lockstep with its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 TRILLION industry. Click here to get the full story in this eye-opening report.


Read/Post Comments (4) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 30, 2014, at 12:19 AM, BernadetN wrote:

    I just love it how critics love to make seem like the WiiU is doing bad. The Psa4 has sold 7.1 million units world wide the WiiU 6.2 may llion and the Xbox1 4 million clearly we can see which is the console that is doing bad. Besides all the games on PS4 and Xbox1 are also on PC and with gaming laptops and desktops being much cheaper than they use to now days REALLY I DINT SEE HOW ARE THESE TWO CONSOLES GOING TO SYRVIVE THE NEXT COUPLE OF YEARS plus the WiiU Pro Controller has already been updated to be compatible with PC so there. This years Nintendo line up will kill these two consoles or at least will start something that's a fact.

  • Report this Comment On April 30, 2014, at 12:46 AM, Croaxleigh wrote:

    It's not exactly a fair comparison when you're comparing a year and a half worth of sales to only around six months worth of sales. You also seem to be ignoring the loss of key third-party game makers and the fact that there are only a handful of major first-party games slated for release this year.

    I own a Wii U and a 3DS. I don't own a PS4 or an Xbox One, or a PS3, PS Vita, or Xbox 360. I even argued against the idea that Nintendo was "doomed" when Wii U sales proved lackluster, simply by merit of the company having a large enough cash stockpile to ride out this generation while taking a loss (which it has been.) However, I'm not blind to the fact that every game that has been expected to jumpstart sales has failed to do so in a significant way.

    Sales are increasing, due in part to bundles and there finally being enough first-party and significant third-party games to make the purchase worthwhile for some players, but they're by no means increasing fast enough to catch up with the PS4 or the Xbox One. In the long run, it's possible that the Wii U could become a moderate success if a massive turnaround happens as a result of games like "Mario Kart 8" and "Smash Bros" (and the eventual release of the next "Zelda" game.) It will still likely be one of the lowest-selling consoles that Nintendo has released, though, simply because it lacks momentum, significant growth drivers, and all but surely has a successor already in development that will hopefully make waves in the market in all of the ways that the Wii U hasn't.

  • Report this Comment On April 30, 2014, at 7:56 AM, GrooveMachine wrote:

    Motley Fool, if you really want to run an article on "what will save the Wii U?", maybe start by running something denouncing the constant barrage of Nintendo is doomed features. Which, by my count, has been running since the early days of the 3DS. In fact, I'm completely convinced that nobody who contributes to the Fool has actually played anything on a Wii U.

    Its too bad, because it really is a nice system for gaming with dozens of quality titles, the ability to play all of the Wii games, and at a price that isn't too shabby.

    Honestly, I'm not a fan of Mr.Iwata as a CEO, and I believe that he has made some very questionable decisions in regards to marketing and software release windows amongst others. However, Nintendo has always been a company that purposely goes against the norm of the industry. Sometimes this is a good thing, like the Wii, and sometimes its not a good thing, like the naming its latest console Wii U.

    Will Mario Kart 8 "save" the Wii U? Well, it certainly won't hurt sales. I'm sure it'll kick up the numbers a good amount. Maybe driving sales into the 10mil range by the time Smash Bros. U is released at Christmas. Will these numbers be comparable/better/worse than the Xbox? Impossible to tell, but I'm sure we'll continue to get negative articles regardless of what is really going on. Which is too bad, because gaming should be about what the individual wants to play, not what they're being told they should be playing.

  • Report this Comment On April 30, 2014, at 9:44 AM, Facer5 wrote:

    It won't save the console, as I feel almost anyone who wants to play this game or other Nintendo exclusives has already bought a Wii U, but it will sell extremely well.

    MK8 won't suddenly show up and sell 6 million Wii Us before the year ends though, that's pretty much impossible.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2934865, ~/Articles/ArticleHandler.aspx, 9/2/2014 8:32:32 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement