Nintendo loss of 1.32 billion

richymcdermott

http://www.shacknews.com/article/70784/report-nintendo-to-post-132-billion-loss-tomorrow

I seen alot of articles about this lately even from rte website out of all places aswell. I seen alot of people saying nintendo are the next sega and the wii u is going to be the dreamcast and while i dont believe they will considering they still have a huge fanbase it does leave concerns about the future.

K.O.Kiki

They've just launched a mild failure of a console, and are pumping R&D into another new product.
Losing money is inevitable.

And next time someone says to you "Nintendo are the next Sega", please slap them in the face for me.
Sega fúcked up for YEARS, through multiple console generations, before calling it quits (although IMHO they might've been able to keep the DC going another 1-2 years).

richymcdermott

Haha will do , :P

JDxtra

There's only so many Pokemon games and variations of the DS they can flog.

Wii U and 3DS? They can keep them.

Myrddin

K.O.Kiki wrote: »

They've just launched a mild failure of a console, and are pumping R&D into another new product.
Losing money is inevitable.

And next time someone says to you "Nintendo are the next Sega", please slap them in the face for me.
Sega fúcked up for YEARS, through multiple console generations, before calling it quits (although IMHO they might've been able to keep the DC going another 1-2 years).

The 3DS hasn't failed, its software support has though....miserably.

richymcdermott

I think nintendo needs to have a strong xmas this year which i think it will , also i think the wii u will need to have a stronger launch of games and be released around xmas 2012 , if its released in the summer its going to face 3ds faith.
At least if its released in xmas 2012 it gives developers time to understand the system and make games for it.

Interesting iwata said there be no wii u news till e3 2012

Wolverine359

richymcdermott wrote: »

Interesting iwata said there be no wii u news till e3 2012

I heard the final version of the Wii U will be unveiled at E3 next year, so it seems that they are going to revise the design somewhat.
http://www.metro.co.uk/tech/games/879989-wii-u-final-form-due-at-e3-2012

richymcdermott

Wolverine359 wrote: »

I heard the final version of the Wii U will be unveiled at E3 next year, so it seems that they are going to revise the design somewhat.
http://www.metro.co.uk/tech/games/879989-wii-u-final-form-due-at-e3-2012

Interesting.. So the console and controller could just be a prototype , next year be an interesting year

Nollog

K.O.Kiki wrote: »

They've just launched a mild failure of a console, and are pumping R&D into another new product.
Losing money is inevitable.

And next time someone says to you "Nintendo are the next Sega", please slap them in the face for me.
Sega fúcked up for YEARS, through multiple console generations, before calling it quits (although IMHO they might've been able to keep the DC going another 1-2 years).

It's inevitable with the current leadership (Iwata).
they lost money last year too for the same reasons.
Iwata's job is to manage the company so they don't post massive losses, he's not doing a good job of that.
While it's completely understandable, the loses shouldn't be as high as they have been.

Retr0gamer

EnterNow wrote: »

The 3DS hasn't failed, its software support has though....miserably.

As I've said many times before the first year of a consoles life is also going to be pretty sparse for game releases. Looks like the good stuff is about to start coming thick and fast though. Anyway, look at the PS3, I got mine 12 months after release and spent 12 months with nothing to play on it. Was losing Sony a rake of money. Not doing to badly now and turned into a decent console.

Also the strenght of the yen is a massive negative factor for japanese companies at the moment.

ebbsy

I d'ont know if I will buy another Nintendo machine myself for a while, the Advance and Ds were fantantic machines (still play them)but the new one does not grab my attention at all. There seems to be less games for the wii than the other 2 machines as well, and I have all the machines above.


Still play the Snes tho.

Myrddin

Retr0gamer wrote: »

As I've said many times before the first year of a consoles life is also going to be pretty sparse for game releases. Looks like the good stuff is about to start coming thick and fast though. Anyway, look at the PS3, I got mine 12 months after release and spent 12 months with nothing to play on it. Was losing Sony a rake of money. Not doing to badly now and turned into a decent console.

Also the strenght of the yen is a massive negative factor for japanese companies at the moment.

I can appreciate the first year is quite sparse, thats a given. But the Nintendo have had AMPLE opputunity to keep us busy during the time. There's a huge back catalogue to push out there, plenty of oppurtunity also with the Nintendo shop (which the prices are crazy, hardly incentive).

I dunno, for 9 months the best title on the system was a 15 year old port. I honestly think they could have done a better job than that, do you not in all honesty?

Retr0gamer

I'd rather see new games than nintendo pushing old games on to the system. I guess it's been a long while now but as someone that bought a DS at launch I can tell you that it was just as bad on the DS if not worse.

Myrddin

Retr0gamer wrote: »

I'd rather see new games than nintendo pushing old games on to the system. I guess it's been a long while now but as someone that bought a DS at launch I can tell you that it was just as bad on the DS if not worse.

Yeah but whatI'm saying is we clearly wern't getting new games, so instead of keeping us ticking over with some back catalogue...they chose to ignore the system for near on six months. If you think thats the best they could have done fair enough, I'd expect better from Nintendo tbh.

Anyhow, the argument is about to become null & void as we're finally getting some quality 1st party titles soon enough. I just hope they havn't left it too late to take their finger out.

Edit - Its a good point re the DS, I've heard that a few times too. It's become an absolute monster of a handheld, so I guess anything could happen. It just felt like a damn long wait at times, frustrating too because the 3D actually works.

ghostchant

I was going to mention the DS here too. Got one at launch and it more or less gathered dust for the first year. It's now arguably my favourite console ever.

Myrddin

ghostchant wrote: »

I was going to mention the DS here too. Got one at launch and it more or less gathered dust for the first year. It's now arguably my favourite console ever.

I think Retr0 too holds it in similar esteem, it raised the bar no doubt, I like it a lot myself. But that in itself shows first hand, the difference betwen a dust gatherer, & a peoples favourite....is purely dictated by the software support. Nintendo I think dropped the ball, but if anyone can turn a console around Nintendo can & I think its started already with imminent arrival of solid 1st & 3rd party software.

Retr0gamer

There's only so much that nintendo can do though. People say the same about the Wii and how nintendo aren't doing enough but if you look at Nintendos output they have been by far the most prolific publisher and developer in the last 5 years. I've put out a lot on the 3DS as well. There's only so much one publisher can do though.

Nintendo just need to attract more third parties to the system and it's really unfortunate that the gaming press have been so sensationalist about the 3DS and probably turning them away. With this story they are worse than a rag like the daily mail. I hope the 3DS does well this christmas and puts the gaming presses nonsense to rest, it's not the first time nintendo had to do this, the 3DS saga is playing out just like the N64 when it launched.

Myrddin

Retr0gamer wrote: »

There's only so much that nintendo can do though. People say the same about the Wii and how nintendo aren't doing enough but if you look at Nintendos output they have been by far the most prolific publisher and developer in the last 5 years. I've put out a lot on the 3DS as well. There's only so much one publisher can do though.

Nintendo just need to attract more third parties to the system and it's really unfortunate that the gaming press have been so sensationalist about the 3DS and probably turning them away. With this story they are worse than a rag like the daily mail. I hope the 3DS does well this christmas and puts the gaming presses nonsense to rest, it's not the first time nintendo had to do this, the 3DS saga is playing out just like the N64 when it launched.

True. Good points

richymcdermott

I think the 3ds has alot better line up of launch games than what ps3 did , ps3 came out with nothing till cod4 and uncharted in 07 and there big blockbuster title that saved them was mgs4 in 08 , i think nintendo will be fine in xmas , still waiting for xmas for 3ds and everyone i know getting one aswell

Retr0gamer

The 3DS has a great price point going into christmas and has got a head start on the Vita. Hopefully sales hit a critical point where third parties will support it.

One big thing is the Vita though and I don't mean outselling it. With the run away success of the PSP in japan, it's the new platform of choice over there and developers might migrate to the Vita and not the 3DS. Most of the DS's best software was japanese developed and western developers have no interest in the handheld market.

Nollog

Nintendo are forecasting to lose 264 million dollars for the current fiscal year.
If that's how it goes down. it will be the first time they will have posted a loss for the full year since 1981.

Retr0gamer

The yen thing is a massive contribution to this though. It's hard for japanese companies to make any money on foreign sales at the moment because of it.

Anyway 264 millions isn't too bad. In December 2004 Microsoft Game Studios held a massive party. The celebration? They 'only' lost 2 billion dollars that year due to the release of Halo 2.

TBH it's about time Nintendo started making a loss on hardware. MS and Sony took massive losses for years after the PS3 and 360 launch only to make it back up once the console was established and profitable. I think the days when Nintendo could make a profit on hardware from day one are over. I think this christmas's performance and how it fares against the Vita will be the most telling.

VGChartz is reporting 6 million 3DS units sold in already, about 6 months after launch. It's hardly a failure and sitting at about an eight of the lifetime sales of the Super Nintendo and doesn't have a big holiday sale under its belt yet. Hardly a failure just not the run away success the DS was, although those with non-selective memory will remember the DS wasn't doing too well until the release of Nintendogs.

richymcdermott

http://www.computerandvideogames.com/324549/nintendo-intentionally-delayed-3ds-titles-to-2012/

Nollog

richymcdermott wrote: »

http://www.computerandvideogames.com/324549/nintendo-intentionally-delayed-3ds-titles-to-2012/

At the start of the year Iwata gave the excuse "we want to allow 3rd parties to grab the spotlight, and are giving them our release dates so they can plan their releases around our major titles".
It's all BS imo.
If Iwata was as brilliant a tactician as these ploys would require, he'd be able to manage not posting multi-billion yen losses.

megaten

/\/ollog wrote: »

At the start of the year Iwata gave the excuse "we want to allow 3rd parties to grab the spotlight, and are giving them our release dates so they can plan their releases around our major titles".
It's all BS imo.
If Iwata was as brilliant a tactician as these ploys would require, he'd be able to manage not posting multi-billion yen losses.

Eh as has been said a lot of the losses have been because of currency fluctuations devaluing overseas assets and sales. Besides those delays are delaying games being finished now into releasing in 2012 rather than pushing them out the door as soon as their done.

Retr0gamer

Sony is also posting a 1.6 billion loss with the strong yen to blame. Of course blaming a strong yen is the mostly likely economic reason for a loss but saying it's because the 3DS isn't selling sounds more dramatic on your games website/blog.

Nollog

megaten wrote: »

Eh as has been said a lot of the losses have been because of currency fluctuations devaluing overseas assets and sales. Besides those delays are delaying games being finished now into releasing in 2012 rather than pushing them out the door as soon as their done.

Obviously it's the biggest factor.
I'm just saying Iwata sucks at managing it.
And at launching a new console with a must-have game.

Retr0gamer

The DS, PS3 and Xbox 360 hardly launched with must have games in fairness.

It's also kind of hard to manage a strong yen when most of your profits come from overseas. They're making a loss on the 3DS hardware in the US and EU but when that loss gets converted to yen it's even bigger as well as making negligible yen profits on US and EU games. They could raise the price but that would be a disaster. Best bet is to ride it out and hope the 3DS reaches a critical mass were the negligible profits on software eventually negate the loss on hardware.

If you look at japan, they are paying 80-100 dollars for a new game whereas we are paying half that.

richymcdermott

Retr0gamer wrote: »

The DS, PS3 and Xbox 360 hardly launched with must have games in fairness.

It's also kind of hard to manage a strong yen when most of your profits come from overseas. They're making a loss on the 3DS hardware in the US and EU but when that loss gets converted to yen it's even bigger as well as making negligible yen profits on US and EU games. They could raise the price but that would be a disaster. Best bet is to ride it out and hope the 3DS reaches a critical mass were the negligible profits on software eventually negate the loss on hardware.

If you look at japan, they are paying 80-100 dollars for a new game whereas we are paying half that.

Jesus... Thats insane

megaten

/\/ollog wrote: »

Obviously it's the biggest factor.
I'm just saying Iwata sucks at managing it.
And at launching a new console with a must-have game.

Amazing, there like every other console manufacturer.

Retr0gamer

Just want to throw this article up. 3DS crisis my ass:

http://www.eurogamer.net/articles/2011-11-14-3ds-to-outperform-ds-first-year-sales-in-us

readyletsgo

/\/ollog wrote: »

Nintendo are forecasting to lose 264 million dollars for the current fiscal year.
If that's how it goes down. it will be the first time they will have posted a loss for the full year since 1981.

Ok, if anyone here listend to NWR podcasts each week, they will know what Nintendo make each year and how much they have and how much they can afford to lose.

To put it mildly, Nintendo has enough cash to have 5 or 6 failed systems over the next 10 or 20 years with the profits they have made making hardware AND software that still sells first hand today. Sure Iwata took a 50% pay cut but that is the Japannese way, 'the shame' and all that.

As NWR says, people need to rememeber nintendo have been around now for 120 odd years, they still make playing cards etc in Japan, sure their games systems are their best selling products but they will not fade away like SEGA. as Retro(i think) has said, they killed themselves TBH, with bad release dates and systems. I do agree the DCast had a lot left in it and they should have stuck with the system but after 7 odd years of failed(?) systems they had to pull out.

Sure jesus, Ninty are relaseing a new Wii with no GC backwards compat, thats how confident they are with the Wii! Make more money off the system before the next one next Xmas, cause the general public havent a clue that a new system will be out by Q3 2012.

So, Nintendo are going no where people. If anything they will be around longer than Microsoft, Sony will be Nintendo's compitition for many years to come and who ever else comes into the market in the mean time.

PS: I do hope they get rid of that tab thing for the U, just horrible, bring back an updated gamecube controller instead god dam it!

megaten

Retr0gamer wrote: »

Just want to throw this article up. 3DS crisis my ass:

http://www.eurogamer.net/articles/2011-11-14-3ds-to-outperform-ds-first-year-sales-in-us

The real test will be how it compares to dslite sales once we get in that time frame.

Myrddin

readyletsgo wrote: »

As NWR says, people need to rememeber nintendo have been around now for 120 odd years

Actually my great, great grandfather had an original NES.

Hank Scorpio

Time to develop some new snes games

Myrddin

nuxxx wrote: »

Time to develop port some new snes games

Fixed :D

richymcdermott

This isnt the place to put it, but not worth starting a thread over , i never being a nintendo guy i had a nes , gameboy pocket and most recently dsi and a wii but i would seriously consider jump shift after when i seen from this article about nintendo dlc system , they seem to treat their consumers as people rather than a number.. I applaud their good hearted nature , least not all companies are evil coperations

http://www.destructoid.com/nintendo-only-wants-dlc-for-complete-game-experiences-216050.phtml