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HappySqurriel on 28 July 2009
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trestres said:

It doesn't matter if Wii's are still making profit, what matters now is what explanation will they hand out to shareholders for their overprojection of Wii sales. If they lower their forecast too much then shares will be sold and Nintendo will lose a lot of money. If they announce a price cut it will have to be an immediate one, if not sales will die until the price is cut.

Nintendo is on pace to sell 16 - 18 million units this year, nothing similar to the 26 million they projected. And I can't see a pricecut happening this year either unless it happens very soon. Nintendo relies too much on 2-3 games/year and that's suicidal, because if they don't spur the interest they expected (like AC:CF, Punch Out or Wii Music) then sales take a deep hit. On Top of that WF+ and WSR are sequels, and will sell mostly to existing owners.

First off, share price is meaningless to companies beyond how it translates into investor confidence; and being that the majority of Nintendo’s shares are held by one family in Japan who is entirely behind the direction of Satoru Iwata the share price of Nintendo’s stock isn’t even a consideration for Nintendo.

Beyond that Nintendo has sold over 8 Million units in the first 6 months of the year, and in a typical holiday season a console manufacturer can achieve 40% to 60% of their total yearly sales in the last 3 months of the year; and this means that, depending on holiday sales, Nintendo could still achieve sales between 20 and 30 Million units.

Now, there is nothing saying that Wii Fit Plus and Wii Sports Resort are only limited to selling to existing customers ...

An element of the Wii's success that so few people seem to pay attention to is how when someone buys a system then end up having people over to play the games they own and some of those people enjoyed it so much they bought a system for themself. The Wii's unprecidented success as a social gaming platform has translated into it being far more viral than any previous console. It is very possible that Wii Sports Resort could become another social gaming monster, and people who were not that impressed by Wii Sports Tennis might be very interested in Table Tennis, and those that were not that impressed by Wii Sports Boxing might be very impressed by Sword Fighting.

Wii Fit continues to be the most dominant game released this generation and if it wasn't for Wii Fit Plus it would be on track to be the highest selling game in (at least) 20 years. When you factor in that Wii Fit has seen sales (roughly) in the range of Call of Duty 4 and Grand Theft Auto 4 combined, I think the attention its sequel will bring to the platform could easily increase sales by quite a bit.