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Forums - Nintendo - Nintendo Now Incurring Loss on 3DS Hardware

Wow.

When Nintendo's taking a loss on a handheld, you know things have gone off the rails.

Looking forward to my free games, though.



"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event."  — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.

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RolStoppable said:
gumby_trucker said:
RolStoppable said:
I doubt that it will be a significant loss, but Nintendo has noone to blame but themselves for conceiving such a poor initial strategy for their current generation handheld.

Was it really that bad?
I know times have changed but the original DS didn't start out any better... is this all because of smartphones or is there something else going on?

really, the DS had quite a few problems when it launched, not the least of which was being weird, making it difficult to understand who the product was aimed at...

Yes, it was that bad. If it wasn't, then we would read different news today.

The DS didn't start out any better, that is true. It was rushed to the market to prevent Sony from pulling off another PS1/PS2 on Nintendo (the PSP was scheduled for late 2004, so Nintendo had to act). That's why the DS launch lineup consisted of a N64 port and games like WarioWare which are really fast to make. But the vision behind the DS was correct and eventually the games that mathttp://www.gamerprint.co.uk/collections/all-productstered got released. Look at the 3DS and you see games that do not belong on a handheld, certainly not on a Nintendo handheld. Nintendo has yet to announce a game that can save the 3DS from becoming a Nintendo fanboy system.

Smartphones may be more advanced than the mobile phones that spelled doom for the DS, but they still can't make a dedicated handheld obsolete, simply because they aren't built specifically for gaming. There are always people who want to see Nintendo being gone and they will use every opportunity. The smartphones only became the new focus because Sony (who was supposed to kill Nintendo's handheld business) got crushed so hard, so nobody is really betting on the PS Vita after the PSP got a beating.

Nintendo's biggest enemy is Nintendo and the 3DS shows it once again. Nintendo has the capabilities to rise to heaven, but in the same way they can send themselves to hell. Nintendo has a long enough history to predict what will work for them and what will not. The 3DS had increasingly selfdestruction written all over it the closer it came to its launch. There's a reason why it's constantly compared to the Nintendo 64 or the Gamecube.

I am not afraid of smartphones. I am not afraid of the PS Vita. I only have to fear Nintendo.

excellent analysis. I think when people think about Nintendo they think about the best of Nintendo and expect as much. In this case it would mean hardware innovation, disruption and all at good prices, none of which Nintendo have delivered with the 3DS. I am somewhat surprised that the first few months of software were that big of an issue, though maybe it just added to the other flaws.

Either way I guess this is an "escalation of expectations" type of situation, where consumers have come to expect excellent consoles from Nintendo, and "good" consoles just don't cut it. Just like if EPIC or Crytek released a good looking game, but not a brilliant looking one...



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Soleron said:

When the sales fail to move at all past the initial boost, Nintendo will regret this.

I think it's because the 3DS is in trouble and they fail to get it's not a price issue, it's a software one. As Malstrom has been telling us since it was announced.


Not that I don't think software is an issue, but price really was one, too. Handhelds need to be priced so that an adult can accept buying one for a child without feeling like they've just lit their wallet on fire, especially with high odds the device may get lost or broken. That means under $200, and preferably $150 or less.

Nintendo expected it to be a huge hit and didn't want to leave money on the table because they priced it too low, like they did with the Wii. Nintendo was wrong.



"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event."  — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.

It's pretty shocking that Ninty is losing some money due to 3DS. O_o



The usual justification for selling consoles at a loss is that it's because the company in question loves us gamers. So obviously Nintendo loves us again after years of silly profiting.



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morenoingrato said:
Roma said:
wait i thought Nintendo did not want to lose money on anything anymore after what happened with GC...

But Nintendo never lost in GC.

If I'm correct, it was more profitable than the PS2.

 

And this is their punishment, this is what happens when you handle the launch horribly, overprice the machine, have 0 good games at launch, your big profile games are remakes, don't have even the store ready at launch, have lazy marketing and just hope that it will sell biillions.

Yeah that was what I thought at first but was corrected by Happysquirrel I think



    R.I.P Mr Iwata :'(

I'm pretty sure Nintendo made a loss with the GC both in launch and when it's price was cut to $99 by holidays '03 I think, when they launched the "whole who are you" marketing. They reported quarterly losses overall if I'm not mistaken, and that was on top of the GBA profits who must have been huge. Still the very fact they could afford it... again, the GC architecture was a miracle.



 

 

 

 

 

RolStoppable said:
gumby_trucker said:

excellent analysis. I think when people think about Nintendo they think about the best of Nintendo and expect as much. In this case it would mean hardware innovation, disruption and all at good prices, none of which Nintendo have delivered with the 3DS. I am somewhat surprised that the first few months of software were that big of an issue, though maybe it just added to the other flaws.

Either way I guess this is an "escalation of expectations" type of situation, where consumers have come to expect excellent consoles from Nintendo, and "good" consoles just don't cut it. Just like if EPIC or Crytek released a good looking game, but not a brilliant looking one...

The best of Nintendo is most importantly about the games. The 3DS may be good hardware, but without games it's a worthless piece of junk.

This price cut is only the first step into a better future. Price was the easiest issue to correct and that has been done. Now it's time for the games to come out. 2011 can be written off already, so 2012 needs to be closely watched. If Nintendo doesn't make a change to their software direction, then the price cut was ultimately meaningless. Another thing that I've thought of for the inevitable revised model with better battery life is a version where the d-pad and analog slider are switched in order to cater to the people who primarily play 2D games, whether that is 3DS titles or Virtual Console stuff.

There are many things Nintendo can do to make the 3DS more appealing and it basically boils down to doing a complete U-turn on the system's direction.


I agree with this one... The 3ds needs more games, more handheld games. The good think though is that probably mario kart and mario 3d are going to offset any losses for the system. This is also a good thing because is going to make nintendo to realize two important things... We need more games, and more often... Nintendo is loosing money just because of them, I mean no wii games from nintendo in 2011 yet... A new mario, what about a pokemon game? Pokemon probably could had turn things better, 5 million copies * $50 = $250mill... The best thing of all is that nintendo is capable of taking things back to heaven, they only need to remember what they are good for, making games... and lots of them.



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I mean arent they still profiting on the ds? if so it probably offsets the loss.



Nintendo finally realised that making a profit of your hardware makes you eviler than Hitler.