Activision 'somewhat disappointed' with Wii U launch
Activision Blizzard CEO Bobby Kotick says his company has witnessed "slower-than-expected adoption" of Nintendo's new game console.
Nintendo investors aren't the only ones bummed by Wii U's uptake.
Speaking yesterday during an earnings call with investors, Activision Blizzard CEO Robert Kotick said he was "somewhat disappointed with the launch of the Wii U." That dagger came just minutes after Kotick acknowledged that his company faced "challenges from slower-than-expected adoption of the Wii U."
It's no secret that the Wii U has faced some trouble since its release in November. Last month,for the nine-month period that ended December 31 and revealed that the company mustered only 3 million unit sales of its new console. Nintendo didn't directly discuss Wii U demand, but the company did say that its upcoming release of classic games for the console should "help Nintendo gain momentum for the Wii U."
In a, Nintendo chief Satoru Iwata said he feels a "deep sense of responsibility for not being able to produce results for our year-end business."
Although Wii sales during the same point in its lifecycle were just at 3.2 million units, they would have been much higher if not for Nintendo's inability to meet its massive demand. For years after the Wii's launch, the device was hard to find on store shelves. By contrast, the Wii U is readily available.
In the U.S., especially, Nintendo is facing some trouble. Research firm NPD Group announced last month that during December,.
Still, Nintendo is by no means ready to wave the white flag. Famed game developer Shigeru Miyamoto told reporters last month that Wii U demand will rise once people get their hands on it and "see it is fun."
Activision, like other game publishers, is negatively affected by slower-than-expected hardware sales. The larger the number of hardware users, the greater the likelihood of game makers selling their products.
That said, Activision Blizzard has little to worry about. The company yesterday announced revenue (PDF) of $1.8 billion during the fourth quarter, up from $1.4 billion during the same period in 2011. Activision Blizzard generated a $354 million profit, up from the $99 million in net income it posted in the year-ago quarter.
Updated at 8:25 a.m. PT to add "million" to net income for 2011.