Nintendo Lowers 2016 financial forecast

[Dunban67]

bunchanumbers said:

Dunban67 said:

the Xbox brand has grown pretty steady since it launched- even the Xbox 1 is selling well compared to previous xbox hardware - it just does not seem tht way becasue the PS4 is selling at a record pace-   so both Xbox and Sony have seen  significant revenue growth during the same period in which Nintendo s revenue has contracted significantly-    Both Xbox and Sony (not to mention mobile) have taken ALOT of market share from Nintendo over the last 8-15 years

As you know, since Nintendo is also a large software developer/publisher those large 3rd party AAA devs and publshers are competing with  Nintendo as well for gaming dollars

Our household only has Nintendo (+ mobile due to I phones and i pad)  gaming consoles-  Nintendo still has lots of cash, alot of game making talent and the most well know IP in the industry-  it is not all gloom and doom-  BUT  that makes the fact that their compnay, revenue and  market share have been consistently shrinking  a negative trend and indicates a lack of execution by their mngmnt over time-  Due to that fact, they are pretty much having to make such big bets on their next gen hardware/software and mobile   (and all in a pretty close time frame) a concern-  they very well may win these bets they are making and do wonderfully-  but the track record of manegment has not been too good - lets hope they pull a wii and a DS out of the hat!

of course they did. They followed the Wii model of being profitable at launch and not taking heavy losses for years. They saw what Nintendo did with a little $250 box that made them 10 billion and they wanted to do the same thing.

If they continued along their old path, both would have ended up right where they started, with lots of consoles and no money. I say good for them for realizing that their old model was not making money, or was too risky.

As for Nintendo, they are doing different things now to diversify their interests. They own a MLB team. They are working on a Universal theme park. They are considering leveraging their IPs for movies and tv. Amiibos are selling like crazy and their next generation of hardware are on the way after unifying their handheld and console teams. Video games are a volatile industry and there are lots of companies that shut doors over video games.

We'll just have to see how it all plays out, but I think that in the end Nintendo will march on. The real question will be what form Nintendo will take going forward.

That is the multi billion dollar question ; what form will they take-  Nintendo could become very profitable again and yet be hardly recognizable to most of its long time fans-   that is kind of the bitter sweet potential of Nintendo.... that they may find huge success again and yet it may be in a way that its most loyal fans can hardly recognse or appreciate/tolerate-