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Forums - Nintendo Discussion - Nintendo lowers forecast from 55 billion yen profit to 25 billion yen loss

SubiyaCryolite on 17 January 2014
superhippy420 said:
Soundwave said:
superhippy420 said:
I still don't think the Wii U's problems have anything to do with hardware specs or the tablet controller, but has everything to do with the lack of big 1st party games, and Iwata should be taking the blame for this. 3rd Party games have never sold / carried Nintendo's consoles, and they could have pretty much every 3rd party game out there and it still wouldn't matter. People want Nintendo games for their Nintendo Console. The "Wii" franchise (Sports,Fit,Play), Mario,Zelda,Mario Kart, Smash Bros,Donkey Kong,Animal Crossing. Metroid,Kirby,Starfox,F-Zero,Pikmin and all of their other franchises have always been 1 - 2 million sellers and none have ever moved consoles, but have been solid software sellers for Nintendo when their base is there. For Nintendo in their 1st full year to only release (of their big franchises) 2 rehashes (NSMBU,Wind Waker HD), and 1 semi-sequel(SM3DW) is pathetic. For as much as I love SM3DW, it should have been a brand spanking new Mario game that we have never seen before like SMB,SMW,SM64, Sunshine,and Galaxy. I do think Nintendo will do much better in 2014, but they better bring atleast 4 more games on top of Smash,Kart,DK,Bayonetta,X,and Hyrule Warriors. Also Wonderful 101 was a huge mistake, maybe with a big install base it would have done better, but to try to move consoles with it was a big miscalculation. The 3DS fell below expected sales, but it's still making Nintendo money no doubt. It's biggest problem is it has not found its NSMB/Nintendogs/Brain Age to really pump up sales, but thats what happens when you don't take a few chances with some new IP's.


The whole "we're going to make a console almost one full generation behind the others!" formula just doesn't work without a blockbuster type of controller to go with it. 

That's where that whole house of cards falls apart. 

Your average consumer couldnt care less about hardware specs.  If that was the Case Vita would be outselling the 3DS by 40 million, the Gamecube would have destroyed the PS2, and Sega would still be a console manufacture.    The house of cards fell apart when Nintendo refused to speed up game development.  Pikmin was delayed, Donkey Kong was delayed, Wii Fit U was delayed, Mario Kart has taken too long, and Smash Bros has taken way too long.  I love Sakurai, but to have him balanced Smash Bros by himself in 2014 is retarded.   I know that game is his baby, but let him manage a team, not do the thing by himself.  Iwata should be canned, the guy is running a gaming company with franchises / properties that sell themself and he is finding a way to screw it up.


Starting from the SNES Nintendos home consoles have been in decline as has the number of high profile 3rd party games on their devices hve steadily reduced. The playstation 1 was built almost entirely on 3rd party support. Same can be said for the PlayStation 2.

I dont understand how/why one would think third partys are irrelevant. It really boggles my mind. Imagine if the Nintendo 64 had gotten CDROM and Final Fantasy VII, VIII and IX as planned? Do you honestly think that would have had zero effect on its lifetime sales? Even Nintendos portables have tons and tons of Japanese 3rd party support (the western developers havent embraced handhelds much) and none of them would be as successful as they are without them.

Nintendo needs to stop isolating itself over and over each console generation. They did it with the Wii and have done it again with the Wii U. Except this time the Wii U is selling like wonders off the hype of the WiiMote. At this point it should be clear to everyone that th Wii was a lucky bet on Nintendos part. Wii U could have been Wii HD with motion plus and PS4 level graphics, it would sell better than the WiiU currently is but never touch the original Wii, not by a longshot. That kind of strategy will NEVER carry a home console ever again.



I predict that the Wii U will sell a total of 18 million units in its lifetime. 

The NX will be a 900p machine

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SubiyaCryolite on 17 January 2014
Mr Puggsly said:
Aerys said:
That shows 3rd party are important, even if some fans think otherwise, nintendo cant make profit on home console without 3rd party


The real problem is the tablet control. It pushed away casuals.

More 3rd party isn't going to bring the masses to Wii U.


The entire PlayStation brand and its success is largely a result of Nintendos hardware stubborness and hostile attitude towards 3rd partys.

Ive never understood the 3rd partys mean nothing to Nintendo argument.



I predict that the Wii U will sell a total of 18 million units in its lifetime. 

The NX will be a 900p machine

ZyroXZ2 on 17 January 2014
DanneSandin said:
ZyroXZ2 said:

I'm really not: http://www.gonintendo.com/?mode=viewstory&id=220598

Here's a portion I've copy and pasted from it:

"As for advertising expenses, and research and development expense forecasts, we made revisions to increase them by eight billion yen and 15 billion yen respectively from their forecasts made at the beginning of this fiscal year. We expect advertising expenses to increase due to the effect of the expenses incurred in foreign currencies to be converted into Japanese yen by using weaker yen rates. The estimated increase of research and development expenses is based on reflecting our ongoing enhancement of the development structure, and new research and development activities. These increases contributed to lowered estimated profit forecasts.
"

Edit: I think you're missing my overall point.  I HIGHLY doubt such a MASSIVE turn to losses is just "lower than expected sales".  I think everyone is so quick to jump on the Nintendo-doomed bandwagon that they simply point at low sales and say "see?! Nintendoomed because it's not selling enough!"...


My Gods! Cut the quote tree already!

Sorry, lol :P



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ZyroXZ2 on 17 January 2014
kowenicki said:

contributed

profit forecast of 55bn yen reduced to loss of 25bn yen... thats a huge 75bn swing

these increased marketing costs are 23bn yen...

Exactly... 23/75 billion yen is nearly 31%, or one third of the swing!  That's a LARGE portion, and is why I was so quick to contemplate whether the massive swing is just "low Wii U sales"... It didn't make sense!  Before I found that article, I believed a good portion HAD to be marketing and development, for which you jumped down my throat for, lol



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zorg1000 on 17 January 2014
kowenicki said:
ZyroXZ2 said:
kowenicki said:
ZyroXZ2 said:
 

I'm not reaching at all here.  There has been no updated to the cost of production of the Wii U, and though it naturally gets cheaper over time, it's still largely presumed to be sold at a loss.

http://n4g.com/news/1150824/wii-u-is-not-profitable-after-one-game-sale

Then, to make matters worse, they cave into the demand for a price drop, and drop the price $50.  This would naturally imply the console STILL remains a loss to sell.  Then they bundled it with NSMBU+NSLU (or even the WWHD bundle), giving initial buyers of those systems little-to-no reason to go out and buy TWO games (because one game doesn't make the system profitable).  I see each console selling at a loss right there, so IF the system had sold two or three times more, that could have potentially NEVER resulted in the profit forecast anyway.  Them selling lower than expected may not have been the source of such massive losses, which is WHY I've been conjecturing that there have been decisions to pump additional money into marketing and current development projects...


for pity sake

millions fewer WiiU sales expectd, and now millions fewer 3ds sales expected... but the loss is due to sofware development costs.

you are reaching, trust me.

I'm really not: http://www.gonintendo.com/?mode=viewstory&id=220598

Here's a portion I've copy and pasted from it:

"As for advertising expenses, and research and development expense forecasts, we made revisions to increase them by eight billion yen and 15 billion yen respectively from their forecasts made at the beginning of this fiscal year. We expect advertising expenses to increase due to the effect of the expenses incurred in foreign currencies to be converted into Japanese yen by using weaker yen rates. The estimated increase of research and development expenses is based on reflecting our ongoing enhancement of the development structure, and new research and development activities. These increases contributed to lowered estimated profit forecasts.
"

contributed

profit forecast of 55bn yen reduced to loss of 25bn yen... thats a huge 75bn swing

these increased marketing costs are 23bn yen...

To be fair he never said it was the sole reason, just that it contributed to it



When the herd loses its way, the shepard must kill the bull that leads them astray.

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superhippy420 on 17 January 2014
SubiyaCryolite said:
Mr Puggsly said:
Aerys said:
That shows 3rd party are important, even if some fans think otherwise, nintendo cant make profit on home console without 3rd party


The real problem is the tablet control. It pushed away casuals.

More 3rd party isn't going to bring the masses to Wii U.


The entire PlayStation brand and its success is largely a result of Nintendos hardware stubborness and hostile attitude towards 3rd partys.

Ive never understood the 3rd partys mean nothing to Nintendo argument.


They don't mean anything.  They had alot of 3rd party's on SNES which only sold 40 million and Gamecube which only sold 22 million.  The Wii 's 3rd party games sold terribly except for Just Dance and a few others and Nintendo moved 100 million.  The DS didnt have very much 3rd Party support either and they sold 150 million.    Playstations entire model is different.   Without the 3rd parties they may not have even sold 30 million PS3's, and I wish I was exagerating.   Same goes for PS4 right now.  Killzone and Knack combined have sold 1.75 million / COD and Fifa combined have sold 2.92 million.   Flip to Wii U both Call of Dutys and Fifa combined have sold 490k / SM3DW has sold 1.63 million on its own.



DanneSandin on 17 January 2014
ZyroXZ2 said:
DanneSandin said:


My Gods! Cut the quote tree already!

Sorry, lol :P

Didn't realise you were new here =) we usually try to keep the trees at 3 quotes, but that mostly never happens... But we could at least make an effort :D



I'm on Twitter @DanneSandin!

Furthermore, I think VGChartz should add a "Like"-button.

Mythmaker1 on 17 January 2014
Devil_Survivor said:
DD_Bwest said:
750million... thats alot of money.

how much did they have in the bank? lol


It was somewhere between 10 to 12 billion dollars last time I heard lol.

Something of an old figure. They've quite a bit less than that now.



I believe in honesty, civility, generosity, practicality, and impartiality.

superhippy420 on 17 January 2014
ZyroXZ2 said:
kowenicki said:

contributed

profit forecast of 55bn yen reduced to loss of 25bn yen... thats a huge 75bn swing

these increased marketing costs are 23bn yen...

Exactly... 23/75 billion yen is nearly 31%, or one third of the swing!  That's a LARGE portion, and is why I was so quick to contemplate whether the massive swing is just "low Wii U sales"... It didn't make sense!  Before I found that article, I believed a good portion HAD to be marketing and development, for which you jumped down my throat for, lol


I think its a mix of low Wii U sales,  Wonderful 101 being a massive flop, 3DS falling a little bit short of expectations, weaker then expected yen, and increased development costs (hopefully due to Nintendo ramping up the Wii U game development).  The way they had a separate Nintendo Direct for W101 and a demo, and constantly pushing it on the eshop, leads be to believe that they thought it would be close to a million seller for them, and it only sold 140k.  That alone would be 48 million in lost expected revenue.



lucidium on 17 January 2014

Not long now..