Nintendo Turns to Angry Birds-Style Games to Fill Software Void (NTDOY)

After delaying Pikmin 3, Wii Fit U, Wii Party U and numerous others, Nintendo NTDOY (OTC Pink: NTDOY) is attempting to fill its software void with a spate of smartphone games. Instead of developing its own games for smartphones (which Nintendo has repeatedly stated that it will never do), the Mario maker is enlisting in the help of third-party studios to bring mobile games to Wii U. Last fall the company announced that it had signed an 'industry first' licensing agreement with Unity Technologies, which offers free development options to mobile game makers who work with Apple's AAPL iOS, Google's GOOG Android and BlackBerry BBRY 10. While little fanfare followed the initial announcement (at the time investors were still under the impression that Wii U was going to receive a steady stream of fresh software), Unity's agreement is beginning to pick up steam as consumers wait for additional games to be released. According to Bloomberg, more than 1,000 developers have contacted Nintendo since the Unity deal was announced. Unity's development engine may be built for mobile platforms, but not all of the resulting games look like Angry Birds. Some are attempting to mirror the experience of a high-end console shooter, such as Activision's ATVI Call of Duty. Even so, most console developers have turned to more powerful (and more expensive) engines, such as Crytek's CryEngine and Epic Games' Unreal Engine. Other developers, such as Konami KNM, have opted to develop their own engines to power their biggest games. Out of roughly four dozen games listed on Unity's website, only three are being developed for Microsoft's MSFT Xbox 360. Just one is being produced for Sony's SNE PlayStation 3. None are currently listed for Wii U. That is likely to change in the coming months and years, but that might not make much of a difference to the consumers who rushed out to buy Nintendo's latest console last fall. Wii U reportedly experienced a huge sales increase -- nearly 400 percent in the United Kingdom -- after Microsoft unveiled the Xbox One last month. That timing may have been coincidental since the sales increase coincided with a price cut at Amazon UK AMZN. Regardless, Wii U's performance is still falling short of the company's initial expectations. Sales plummeted more than 80 percent during the first quarter. While the Amazon UK sales increase is notable, it may not be enough to help the console rebound. Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ