Nintendo Slashes Profit Forecast by Four-Fifths

[samsonguy920]

There are many factors to consider why the 3DS isn't making Nintendo money.
This article gives some good ideas why the handhelds just aren't the thing anymore...
http://kotaku.com/5824805/the-risk-of-ignored-excellence-threatens-the-playstation-vita

 

[Baresark]

The Wii-party had to end. Nintendo is just footing the bill for the show.
Now that their fad has finally died, they have to go back to business as usual and business does not look good.

I suspect that their 3DS will sustain them in the long run; it's just a better competitor than the Vita in its own market (not on technical specs, but technical specs couldn't put the PSP ahead of the DS despite years of trying; price did) but the Wii U is going to be a huge gamble for Nintendo.

How do you win back the hardcore market after you have:
1) Constantly and blatantly shunned them for the last 5 years
2) Sat back and watched as your two primary competitors completely saturate the market

It's very easy to forecast Doom for Nintendo at this point.

I see your point, but I don't see the Wii U as a huge gamble at this point. No one can be sure what the price point is going to be, but you can bet it will be competitive to current offerings of the Sony and MS. I don't think they "shunned" anyone either. They simply offered something that had just enough at a cheap enough price that you basically couldn't not own it. They are great at business, and there is no doubt in my mind they are not going anywhere. They still have the market completely cornered on the hand helds, and the price cut of the 3DS is only going to solidify that further. They will make less profit off of the 3DS, but still make a profit. Also, I don't understand your second point. Watched the other companies saturate the market with what? And how is that Nintendo's fault?

The only way I can see the Wii U not having a good launch is if the launch lineup isn't any good. I think they literally NEED to have a staple IP on release. I do agree that the Wii was a runaway success, one that may very well be impossible to repeat, for anyone. But I don't agree that motion controls are just a gimmick as so many people seem to thing. The games done well with motion controls were fantastic. It's just that far too many developers did not make the Wiimote control well. Also, you are offered the ability to use many other controls besides those. Though, the 3D thing has to go, it's so annoying, but once again, you can shut that off on the 3DS. Turning the dual GPU to a single game with no use of 3D could very well make the graphically most pleasing handheld anyone has ever seen, imagine that with a Zelda game.

Just a few thoughts.

 

[Herbsk]

Hopefully Nintendo won't go under due to these somewhat ill-advised new products they have made recently.

 

[Lethos]

Nintendo's shareholders must be bricking it right now. In any case, I haven't bought a Nintendo product since the original DS because the direction Nintendo was going, wasn't one I wanted to follow. But I don't want them to sink for two reasons.

First of all, plenty of people enjoy Nintendo products so it would be bad for them if Nintendo sunk. Seeming as I'm not an asshole and therefore don't want people to lose something they like, I would rather Nintendo stuck around to keep knows people happy.

But second of all, more console producers = more competition = better consoles and value for money for all of us.

 

[coolkirb]

my god you could make a drinking game out of the word gimmack, though I must say I never say anything nintendo did as a gimmack after all some company has to push the boundries and develop new ways to enjoy videogames

 

[Ickorus]

Maybe this will teach them that you can't count on nostalgia and gimmicks to keep you going forever.

I don't want Nintendo to go under though, I just hope they think about doing something new now.

 

[MB202]

...Too bad so sad. I don't know, I guess I don't care as much for Nintendo's financial troubles as I used to...

 

[Hungry Donner]

The strong yen bit confuses me, I thought after the tsunami their economy was hit quite hard . . . I realize Nintendo can't make this up, although it make me thing they've over-emphasized it.

Normally I'd say that this shouldn't impact Nintendo much in the long term, but after the lukewarm reception of their E3 demonstration this could be the first stumble down a long flight of stairs. It wasn't long ago Nintendo was rightfully a juggernaut even in the company of Microsoft and Sony, and the Wii's focus on casual gaming was well-timed and well-marketed. But at the moment their marketing is in disarray, they've generally lost their focus, and their current and future product line is looking uninspiring.

I don't think this is the beginning of the end for Nintendo, far from it, but they may have a rocky few years before they've properly pulled out of this. Then again for a studio rather notorious for relying too much on established franchises, and releases too-similar sequels, this shake up may be very good for them creatively.

 

[mjc0961]

Nintendo had better have a damn strong launch lineup for the WiiU to get people buying them. That "We're not going to offer anything enticing so 3rd parties like Ubisoft can get more attention to their rushed ports" strategy isn't going to get people buying. Releasing nothing worth playing at a high price to later cut the price drastically but offer 20 free games to early adopters isn't going to cut it.

 

[Aiddon_v1legacy]

They only reduced their fiscal year forecast. I mean, they aren't going to be laying anyone off over this. They are not in bad shape by any stretch of the imagination. And while the news of the Wii U didn't help their stock, I am willing to bet it will be a homerun, if for no other reason that it will be way more powerful than any other console out there, and has lots of third party support. The industry took a hit, that is all there is to it. Sony and Microsoft aren't reporting any ridiculous profits either.

I'm with you on this. This is not really news. We know everyone "hates" Nintendo already. We know Nintendo is not hot at this point. And we know everyone is reporting reduced profit margins.

This illustrates my own thoughts almost exactly. Credit goes to Lofty the Metroid over at Go Nintendo.

"The 3DS is perfectly fine in its life cycle, comparatively better than the DS or PSP were at these points in their life spans. Especially when you take into account the March launch and lack of a holiday season (which the DS/PSP had within their first month).

What I find more interesting is the irrational response the industry has had to the console's performance. Is this just another example of the media's secret desire to see Nintendo doomed *for real* this time?

Or, has the internet and today's entertainment environment conditioned us to expect more immediate results/gratification? I'll be interested in the Vita launch, where it will have the same sales, software, and hardware issues as the 3DS, but magnified to a much larger degree. Will the industry realize they're overreacting and force themselves to go back and remember/understand how launching new hardware works, or are they going to be equally irrational from here on out and believe every new piece of hardware is doomed to failure?

Or are they going to be fair to the Vita and we can just chalk it up to the anti-Nintendo bias?"

As Louis C.K. said "Everything's amazing, but nobody's satisfied." "Gamers" are a bunch of ungrateful, spoiled brats who never, ever appreciate anything. And my sympathy for them is GONE.

 

[Podunk]

Maybe don't rush out an overly expensive handheld with no real games, Nintendo. And while you're at it start porting some shit over here. With nothing on the horizon except a new Zelda(which looks like it'll be the first Zelda I don't even give a token shit about), you really aren't doing anything that's gonna make you any money.

 

[Atmos Duality]

I see your point, but I don't see the Wii U as a huge gamble at this point. No one can be sure what the price point is going to be, but you can bet it will be competitive to current offerings of the Sony and MS.

You're correct there. It has to compete with Sony (PS3) and Microsoft (Xbox 360).

I don't think they "shunned" anyone either.

Tell that to the folks running Operation Rainfall. Nintendo is intentionally withholding three high profile Wii games from the US market. Why? Because Nintendo feels those games don't fit into the market profile of the US; specifically, the games are (as they openly admitted) "Not casual enough".

They simply offered something that had just enough at a cheap enough price that you basically couldn't not own it. They are great at business, and there is no doubt in my mind they are not going anywhere. They still have the market completely cornered on the hand helds, and the price cut of the 3DS is only going to solidify that further. They will make less profit off of the 3DS, but still make a profit.

That I agree with. The 3DS is looking to be Nintendo's future lifeline.

Also, I don't understand your second point. Watched the other companies saturate the market with what? And how is that Nintendo's fault?

Nintendo has almost completely neglected hardcore gamer for the last 5 years; relying primarily on first party titles and casual shovelware for profit. Off the top of my head, I can think of a total of 4 (among HUNDREDS) of Wii titles that didn't fit into either of those categories.

Because Sony and Microsoft didn't challenge that market, Nintendo was able to pull ahead in profits. However, the Wii U is a (pun inbound) U-turn for the direction of their company; at E3, Nintendo marketed the Wii U directly to hardcore gamers.

The only way I can see the Wii U not having a good launch is if the launch lineup isn't any good. I think they literally NEED to have a staple IP on release. I do agree that the Wii was a runaway success, one that may very well be impossible to repeat, for anyone.

The Wii *was* a financial success; no doubt about that. But that success came at a price.
Nintendo sacrificed the goodwill of hardcore gamers through years of neglect.

Meanwhile, Sony and Microsoft have taken over the entirety of the hardcore console market and that is my second point.

As a personal note, I still feel cheated for having purchased a Wii. It's a useless white brick that sits in my den with no games I care about.

But I don't agree that motion controls are just a gimmick as so many people seem to thing. The games done well with motion controls were fantastic. It's just that far too many developers did not make the Wiimote control well.

Just a few thoughts.

I disagree. The motion controls never felt natural to me, and most Wii titles I played felt like they would have controlled better with a regular gamepad.

 

[starwarsgeek]

They only reduced their fiscal year forecast. I mean, they aren't going to be laying anyone off over this. They are not in bad shape by any stretch of the imagination. And while the news of the Wii U didn't help their stock, I am willing to bet it will be a homerun, if for no other reason that it will be way more powerful than any other console out there, and has lots of third party support. The industry took a hit, that is all there is to it. Sony and Microsoft aren't reporting any ridiculous profits either.

I'm with you on this. This is not really news. We know everyone "hates" Nintendo already. We know Nintendo is not hot at this point. And we know everyone is reporting reduced profit margins.

This illustrates my own thoughts almost exactly. Credit goes to Lofty the Metroid over at Go Nintendo.

"The 3DS is perfectly fine in its life cycle, comparatively better than the DS or PSP were at these points in their life spans. Especially when you take into account the March launch and lack of a holiday season (which the DS/PSP had within their first month).

What I find more interesting is the irrational response the industry has had to the console's performance. Is this just another example of the media's secret desire to see Nintendo doomed *for real* this time?

Or, has the internet and today's entertainment environment conditioned us to expect more immediate results/gratification? I'll be interested in the Vita launch, where it will have the same sales, software, and hardware issues as the 3DS, but magnified to a much larger degree. Will the industry realize they're overreacting and force themselves to go back and remember/understand how launching new hardware works, or are they going to be equally irrational from here on out and believe every new piece of hardware is doomed to failure?

Or are they going to be fair to the Vita and we can just chalk it up to the anti-Nintendo bias?"

As Louis C.K. said "Everything's amazing, but nobody's satisfied." "Gamers" are a bunch of ungrateful, spoiled brats who never, ever appreciate anything. And my sympathy for them is GONE.

Couldn't have said it better myself. I don't even know why I spend time on gaming forums. They do nothing but complain! Any popular game they don't like is over-rated; any obscure game they do like is under-rated. New entries in franchises are both too similar and too different from their most popular predecessor, and either way, they'll complain that the company focuses too much on its franchises and not enough on new IPs, which they'll probably ignore once it comes out. Take a look at Nintendo...one day, they're complaining that there's too much Zelda and Mario, and the next day they're complaining that Nintendo launched a new IP and brought back an old one with the 3DS instead of launching with a flagship franchise. It's ridiculous!

 

[Xman490]

Maybe the problem started when they alienated their core fans, and they now realise that the people who were merely there for the 'new hot thing' are shallow and fickle, and wouldn't actually splash out any further, and now they're left with 3 groups: those who didn't buy a Wii, because they disliked the direction Nintendo was going in, those who bought a Wii, and only played Wii Sports and shovelware, and those who bought a Wii, and use it as a dust collector.

I hope that Nintendo tries hard to get back to core gamers with the Wii U. Nintendo-sponsored user-generated content and online play are what I hope Mario and Zelda will be treated to instead of simply the 64 experiences remade with new puzzle-solving tools.

 

[Alpha Maeko]

Nintendo doesn't realize the pile of money they could be standing on once again. It's easy- so easy, but they refuse to just do it.

Come out with a serious, mature, direct sequel to Ocarina of Time.

Your money problems will magically disappear for a while.

 

[TheRocketeer]

First Square-Enix, now Nintendo. BioWare's probably next.

I hear more and more people saying we're headed for another industry collapse. I really hope that's not true.

I hope that Nintendo tries hard to get back to core gamers with the Wii U. Nintendo-sponsored user-generated content and online play are what I hope Mario and Zelda will be treated to instead of simply the 64 experiences remade with new puzzle-solving tools.

I think you've got it backwards. The 'core' Nintendo fans did buy the Wii, and did so precisely because it gave them 'the 64 experiences remade with new puzzle-solving tools,' not in spite of that.

On the other hand, if Nintendo starts messing with the status quo of its core franchises, that will alienate a great number of people who call themselves the core audience, or the true fans, or the Nintendo die-hards, or whatever.

 

[For.I.Am.Mad]

Thank you Capitalism. I might buy one now.

 

[GeorgW]

I'd say this is a good time to buy Nintendo stocks. I mean, they're gonna recover from this, right? Right??