Nintendo Profits Nosedive

[FoAmY99]

Let's look at this shall we. Is it any surprise now that the xbox 360 and PS3 have motion controls anyone really wants the "Gamecube Motion Control Package" errrrr I mean the Wii. Well they milked the Gamecube for a good decade almost although they did have to repackage/rename it halfway through and add a shitty motion controller to get it to really take off . . . .

This. And the Gamecube was far easier to use as well.

 

[Souplex]

Why don't people understand things like market saturation? There is a ceiling for these things.

 

[crazypsyko666]

I'm not really concerned for Nintendo. They've already won the console war, unfortunately. It's probably a good move to release the 3DS now, given that everyone who's going to buy a Wii or DSi/lite/XL/bollocks already has. All they need to do is jump on to the newest gimmick, toss it out onto the market and continue milking families dry. Rinse, repeat.

 

[vxicepickxv]

That's mostly because everyone has one.

What he said.

At this point, anyone who wants a DS/Wii owns one. Or knows somebody who owns one.

You can't sell something to people that already have it? Is that what you're saying?

 

[TheGuy(wantstobe)]

At the moment they can afford to be down by as much in the next 5 quarters (up to next April) and hit 100 mil Wiis sold. Wii software also did it's bigger quarter since release this year and is curently sitting at around 700 million units, so people do in fact by Wii games. Wii software projections for the year have been increased.
The DS is now 7 years old and still moves massive amounts of software and at this rate will probably hit 900 million to maybe 1 billion software units when all is said and done depending on how long retailers keep stock of new games and how fast pubs jump ship. DS software predictions for the year have been increased too.
From Nintendo's expectations of 22.5 million handhelds sold this FY we can easily deduce that they expect to sell around 3-4 million 3DS units in the time that it is on the market. (1 month in Japan, around 5 days in the EU and US)

Profits for this FY have been smashed by the Yen being so strong in comparison to the Dollar. In the last quarter it gained almost 8% on the dollar and yet the last quarter was actually profitable for them meaning it was the first two quarters that have caused the massive declines YOY. This can be explained by large investment on new manufacturing lines for the 3DS and also R+D costs associated but I'll have to wait for the EOY report to see if that was the case.

When you're still selling 15 million plus consoles per year though doom and gloom is rather amusing to see but I can't help appreciate that it's driving the stock price down before the 3DS launch which will end up making me a tidy profit.

There we go a decent write up of the quarterly report.

 

[Okysho]

Nintendo lost it when they did not do three crucial things.
A) They didn't upgrade the console graphics from gamecube to wii.
B) They didn't bother to give a shit about the real gaming audience that bought their products.
C) They didn't make the Wii their flagship system. If you don't know already, it's the DS. That's why there's 400 different versions of it and more of Nintendo's big advertising is for that system. The game nintendo puts out that they consider the "big games" are DS games.

If there's anyone still loyal to Nintendo, it's officially over. If Nintendo doesn't realize what they've done wrong after this, we've officially been abandoned

 

[SilverUchiha]

Not really surprised. Not that I think the Wii is a bad system, but that it has practically saturated the marked with LOTS of Wii's. So now it has to do something different if it want's to continue to make a profit.

Agreed. Maybe making more good games for the console. A handful a year isn't likely to keep us all interested forever.

Maybe people are just saving for the 3DS? Why would I buy a DSi when I'll just be outdated in a few months.

I think I said a similar thing when the DSXL was announced and released too. I think I also mentioned how it felt similar to the rapid release of Sega Consoles back in the 90's. I don't think Nintendo will fail nearly that badly, but it might be wise for the company to start slowing down a bit. Especially since, with the 3DS, it will render 4 devices that were released in the past seven years obsolete (DS, DS Lite, DSi, DSXL). Am I the only one that sees the problem?

So now rather than making a motherfucking shitload of money they're just making a fucking shitload of money. I'm sure the 3DS will improve things though. I mean they're remaking Ocarina of time, and if there's one thing Nintendo fans love more than a new Zelda game it's getting to play an old Zelda game again.

I'm a Nintendo fan, but I think Zelda is the most boring piece of crap I've ever played. But remaking a boring, crappy game only annoys me more. Why not remake something good? Or make something new that's good?

(I'm done quote people now. I just could let that last one go though).

 

[Blind Sight]

That's mostly because everyone has one.

FYI, the worlds population is somewhere in the neighborhood of 6.8 billion people, the Wii has sold ~84 million units. So really, 1.2% of the population have one.

Well you should subtract the population percentage that has no access to clean water or food as well haha, somehow I don't think they're out buying Wiis in Somalia.

 

[Azaraxzealot]

the only reason i think its slumping is because almost every american and japanese individual has one, so theyve flooded their own market meaning there are so few customers left to sell to

 

[Ghengis John]

That's mostly because everyone has one.

And as some others said this I have to agree with all of you. It's too true. I bought one, for all the good it did me as it sits around collecting dust I still bought it. All of three games I ever owned for it, Wiisports, which it came with, Mario Brothers Brawl and MadWorld. I have never bought anything online for it.

It's not like the console itself can continue to make profits all on it's own forever. It's not like the other manufacturers aren't muscling in on their motion sensor market and it's definitely not like they can carry themselves on profits from software sales. I think more California Condors are born every year than the Wii sees titles.

So without further ado, bring on the 3DS.

 

[Yomandude]

So, from what I understand, they're gambling a successful profit for this year (next fiscal year) based on a handheld gimmick? No offense to Nintendo, because gimmicks can be good on occasion. Still, I sense Nintendo's digging itself into a bit of a metaphorical hole here...

 

[Lexodus]

That's mostly because everyone has one.

What he said.

At this point, anyone who wants a DS/Wii owns one. Or knows somebody who owns one.

You can't sell something to people that already have it? Is that what you're saying?

As a counter, are YOU saying that if you already own a Wii you'll go out and buy another one, for shits and giggles? Basically nobody has two of the same console, for the simple reason that there is no point. Instead of the same one, with exactly the same list of games, people will go out and get a different console to further enhance their gaming. When I wanted another console, I didn't think 'you know what? One wii's gotten a bit boring, HOW'S ABOUT I BUY ANOTHER LOLOL', I went out and got a PS3 instead.

 

[Blind Sight]

Well you should subtract the population percentage that has no access to clean water or food as well haha, somehow I don't think they're out buying Wiis in Somalia.

The population of Somalia is paltry in comparison to the rest of the consuming world (~9 million, roughly 10 million less...than New York State). And there's no certainty that pirates haven't boarded and raided Wii supplies destined for other parts of Africa.

Well I meant the developing and third world as a whole, not to mention countries where the Wii isn't even released 'yet'(read: China, population 1.1 billion).

 

[natster43]

I'm pretty sure sales will pick up with the 3DS. And as said by pretty much everyone else, their sales have been going strong for many years now, and most people who want the Wii and DS own one already.

 

[Therumancer]

Hmm, well it's a bad economy and I also think they are dealing with a situation where their products have penetrated as far as they can go. Everyone who wants a DS or Wii already has one.

Honestly, while I'd like a 3DS, coming up with $250 is going to be rough (though I'll doubtlessly do it eventually) and on top of that I have yet to see many upcoming games that I'm all that excited about, the most appealing ones by and large being remakes of games
I've already played. I know launch libraries are always limited, but right now there isn't an "OMG I must play that" game that has me wanting to rush out and buy one immediatly no matter the cost. I'm pretty much okay with waiting for an eventual purchuse, and honestly it seems a lot of people are thinking the same way, for similar reasons. Nintendo might not be getting the massive sales rush they are hoping for.

That said, I wish them luck. Nintendo was literally the "comeback kid" with the Wii and seems to be on the downward spiral again. It remains to be seen if it will sink as far or have a similar comeback.

Honestly an affordable hardcore gaming console without the motion control garbage would be welcome. Games like "eternal darkness" and the like have been begging for sequels.

 

[joshthor]

nintendo should drop the wii's price 20 bucks. i would jump on that, and im sure alot of other people would too. im no economist but sales would probably be up as people looking for a little party game machine would be picking this up as a second console. i know there are alot of gamers who want to try some of the wii games but cant justify 150 bucks on a console with only a few games they want.

 

[AzrealMaximillion]

Everyone has a Wii or/and a DS.
Most of those people aren't core gamers.
Core gamers are repeat customers. Casual Gamers are not.

If anything this will have DS sales go up seeing as how the 3DS will look expensive compared to the DS to a casual gamer. That and the 3DS can play DS games anyways.

 

[Something Amyss]

Maybe people are just saving for the 3DS? Why would I buy a DSi when I'll just be outdated in a few months.

Truthfully, I wouldn't buy a DSi with the 3DS coming out.

But the Wii?

 

[Xanthious]

Honestly an affordable hardcore gaming console without the motion control garbage would be welcome. Games like "eternal darkness" and the like have been begging for sequels.

This is the problem. Nintendo has shown in the past decade and a half that without some sort of shitty gimmick to set their systems apart they simply are unable to compete any longer. N64 was a failure and the Gaemcube was pretty horrible too. It wasn't until they started adding on gimmicks like two screens and touch screen and motion controls did anyone give two shits about their consoles again and the 3DS proves they still feel that they need a gimmick to fall back on rather than standing on the actual quality of their games.

I have a feeling that if Nintendo had to actually compete without having a bad gimmick to hide behind people would far less willing to keep buying the same six or seven titles they regurgitate over and over. Present day Nintendo without gimmicks is the Sega of 10 years ago and we saw how that ended. Simply put I doubt we will ever see another Nintendo console that is just a pure and simple gaming console for people who want to play games and not flail around or stare at two screens. They tried those waters twice already and both times they failed.

 

[Cryo84R]

I know people here are haters, but the actual report brings up the fact that Nintendo is facing increasing pressure from the rise of iOS as a gaming platform. The new PSP and iOS devices will play a part in Nintendo having to be a bit more competitive in a market they have owned since the sun first rose.