Introducing Miiverse, Social Network for Nintendo Wii U Gamers

Nintendo has taken a social spin on its latest game console, Wii U, introducing Miiverse, a social network for its console gamers. The launch is seen as a timely strategy for Nintendo to draw alongside its closest rivals in the gaming business today – iPads, smartphones and even Facebook. With consumers steering their preferences to social games like those offered by Facebook and gaming apps in tablets and smartphones, Nintendo hopes the launching of Miiverse will bring players together and back on the console gaming platform.

Hajime Nakajima, an Iwai Cosmo Securities wholesale trader, shares to CNBC his opinion about the launching of social network Miiverse. Nakajima believes Nintendo’s entry into online gaming market is a smart move, however he raises one pressing question – will the company be able to make profits?

The company released a 30-minute video on Sunday, with Nintendo CEO Satoru Iwata announcing the many features of the new console and how these are geared towards “creating something unique” for the market. The video was made public two days prior to the E3 news conference on Tuesday morning.

“New technologies in general have made life easier and more efficient. But we have to wonder what this could mean for the nature of human relationships moving forward,” CEO Iwata speaks in the video. “So one of the challenges we set for ourselves was creating something that would help unite people rather than divide them.”

Miiverse is designed as a social network for Wii U gamers, allowing them to communicate with other players through the Wii U Game Pad. Essentially a controller sporting a 6.2-inch touch screen, the Game Pad allows users to check out posts, publish comments, or view popular games and other friends who might be playing the same games. The game pad comes with a camera for video chatting, as well as a virtual keyboard and a stylus.

Nintendo Wii sales have been decelerating this past year, with the company having to deal with its first annual operating loss totaling $477 million. Nonetheless, Chief Executive Iwata remains optimistic about the launch of Wii U at the E3, despite the Wii’s waning sales and lackluster market performance the previous business year.