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Forums - Nintendo Discussion - Nintendo might have a serious issue on their hands...

BuckStud on 25 February 2013
TheJimbo1234 said:

 

 

Ground Rules

  • This is about Nintendo and no one else, so don't mention any other companies unless absolutely necessary. 
  • Try to use facts, figures, and articles if possible 
  • There will be basic economics in this thread. If you don't like that or don't want to learn, then hop along and find another thread. 

  

So....Nintendo have a serious problem on their hands and I would like to know what people think about it and how they think Nintendo are going to deal with it. 

  

The problem is that it looks like Nintendo are going to miss their sales target for the WiiU AFTER it was cut by ~ 20%. By March 2013 they were hoping to have sold 5.5 million units of the WiiU, yet this was reduced to 4 million units after looking at current sales figures, and it seems that they will not hit this target by some margin. 

For anyone familiar with how public companies works, if a company gets a sale figure wrong, this is a huge problem - one that normally leads to someone at the top being fired. This then leads to a large drop in share price and of course, financial problems for the company. To get it wrong twice? Well, this just doesn't happen. 

My prediction is that there will be a huge Ceo/President Vs Share holders fight, which will result in the blitzing of the current board and a reshuffle of all major management at Nintendo. If not, everyone will dump their stock and Nintendo will have serious financial issues (unless it has huge funds to fall back on).

Now you might be thinking "But wait kind Sir! The Wii was a huge success so surely Nintendo can ride that wave a bit longer until the WiiU picks up speed?!". Sadly not this time. Since 2008 Nintendo have seen a 82% drop in their share price, so unless their money is sitting cosy drinking pina coladas in the Cayman Islands, Nintendo are going to have to be pretty flexible on this and go with their share holders.

 

So, what do you all think?

 

 

Sources

http://uk.finance.yahoo.com/echarts?s=NTO.BE#symbol=nto.be;range=20071019,20130218;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

http://www.forbes.com/sites/davidthier/2013/01/30/nintendo-cuts-forecast-on-weak-wii-u-sales/

(Some hardcore sources right there!)

 

 

Gee, another nintendo is doomed thread by a "____" fanboy.  Figures....

~Mod Edit!~

This post has been moderated.

-Smeags



Stop hating and start playing.

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superchunk on 25 February 2013

better source

http://gamrconnect.vgchartz.com/thread.php?id=151051

Yep. Likely to be missed by 500k to 1m depending on what Nintendo can get into the physical channel.



TheJimbo1234 on 25 February 2013
BuckStud said:
TheJimbo1234 said:

 

 

Ground Rules

  • This is about Nintendo and no one else, so don't mention any other companies unless absolutely necessary. 
  • Try to use facts, figures, and articles if possible 
  • There will be basic economics in this thread. If you don't like that or don't want to learn, then hop along and find another thread. 

  

So....Nintendo have a serious problem on their hands and I would like to know what people think about it and how they think Nintendo are going to deal with it. 

  

The problem is that it looks like Nintendo are going to miss their sales target for the WiiU AFTER it was cut by ~ 20%. By March 2013 they were hoping to have sold 5.5 million units of the WiiU, yet this was reduced to 4 million units after looking at current sales figures, and it seems that they will not hit this target by some margin. 

For anyone familiar with how public companies works, if a company gets a sale figure wrong, this is a huge problem - one that normally leads to someone at the top being fired. This then leads to a large drop in share price and of course, financial problems for the company. To get it wrong twice? Well, this just doesn't happen. 

My prediction is that there will be a huge Ceo/President Vs Share holders fight, which will result in the blitzing of the current board and a reshuffle of all major management at Nintendo. If not, everyone will dump their stock and Nintendo will have serious financial issues (unless it has huge funds to fall back on).

Now you might be thinking "But wait kind Sir! The Wii was a huge success so surely Nintendo can ride that wave a bit longer until the WiiU picks up speed?!". Sadly not this time. Since 2008 Nintendo have seen a 82% drop in their share price, so unless their money is sitting cosy drinking pina coladas in the Cayman Islands, Nintendo are going to have to be pretty flexible on this and go with their share holders.

 

So, what do you all think?

 

 

Sources

http://uk.finance.yahoo.com/echarts?s=NTO.BE#symbol=nto.be;range=20071019,20130218;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

http://www.forbes.com/sites/davidthier/2013/01/30/nintendo-cuts-forecast-on-weak-wii-u-sales/

(Some hardcore sources right there!)

 

 

Gee, another nintendo is doomed thread by a "____" fanboy.  Figures....


I didn't realise Forbes writers were "fanboys"  rather than economists  *rollseyes*. Oh wait....



wvelting on 25 February 2013
The only problem that Nintendo has is people like you....did they run over your dog or something? All the hate on this site is truly unbelievable.
btw...I love how your "rules" are to not talk about the other companies issues...real fair. One of them has a handheld that sounds like a brand of cheese that will be lucky to meet 30% of it's original forecast....
I hope the company that sounds like Bologna is at least paying you for your time....


MDMAlliance on 25 February 2013

Well, one thing I think is that it is possible they are releasing some games between now and the end of March for the Wii U. Games releases have a tendency to increase the sales of a piece of hardware, depending on what kind of game it is and the existing install base of said system. So, since Nintendo knows more about what they are doing with their release schedule, it is possible that they have taken this into account. However I am not really 100% sure this is the case.

Either way, I do not think Nintendo is in trouble. I think things will start to pick up like they did with the 3DS.



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VGKing on 25 February 2013
JoeTheBro said:

They have a successful handheld that can offset losses on the Wii U. It is defiantly a serious situation but not as bad as you make it sound. Also that other company that shall not be named has continuously dropped sales predictions of one of their products and nothing major in management has happened.

3DS is not selling well despite it being #1 in the weekly charts. Japan is really the only region where it is selling very well.



kirby007 on 25 February 2013
VGKing said:
JoeTheBro said:

They have a successful handheld that can offset losses on the Wii U. It is defiantly a serious situation but not as bad as you make it sound. Also that other company that shall not be named has continuously dropped sales predictions of one of their products and nothing major in management has happened.

3DS is not selling well despite it being #1 in the weekly charts. Japan is really the only region where it is selling very well.

SINCE WHEN IS SELLING AWESOME IN ONE REGION NOT SELLING WELL ?



 "I think people should define the word crap" - Kirby007

Join the Prediction League http://www.vgchartz.com/predictions

Instead of seeking to convince others, we can be open to changing our own minds, and seek out information that contradicts our own steadfast point of view. Maybe it’ll turn out that those who disagree with you actually have a solid grasp of the facts. There’s a slight possibility that, after all, you’re the one who’s wrong.

VGKing on 25 February 2013
kirby007 said:
VGKing said:
JoeTheBro said:

They have a successful handheld that can offset losses on the Wii U. It is defiantly a serious situation but not as bad as you make it sound. Also that other company that shall not be named has continuously dropped sales predictions of one of their products and nothing major in management has happened.

3DS is not selling well despite it being #1 in the weekly charts. Japan is really the only region where it is selling very well.

SINCE WHEN IS SELLING AWESOME IN ONE REGION NOT SELLING WELL ?

Go to the front page and look at North America and Europe sales. They are ABYSMAL for a console that's been out nearly 2 years.



MDMAlliance on 25 February 2013
VGKing said:
kirby007 said:
VGKing said:
JoeTheBro said:

They have a successful handheld that can offset losses on the Wii U. It is defiantly a serious situation but not as bad as you make it sound. Also that other company that shall not be named has continuously dropped sales predictions of one of their products and nothing major in management has happened.

3DS is not selling well despite it being #1 in the weekly charts. Japan is really the only region where it is selling very well.

SINCE WHEN IS SELLING AWESOME IN ONE REGION NOT SELLING WELL ?

Go to the front page and look at North America and Europe sales. They are ABYSMAL for a console that's been out nearly 2 years.
21,986 31,926 99,806 162,058
39,801 54,966 15,225 132,965
55,495 27,088 490 89,592

Hmmm.  You mean this?



Zekkyou on 25 February 2013

Nintendo are certainly not in an as positive a situation as the one they enjoyed a few years ago, but It would be comical to call their situation "serious". The 3DS alone could keep things running fairly smoothly, not to mention they have a good amount of cash.

That being said, they are not in the situation that would be called positive when compared to the years gone by.