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

kekrot on 17 January 2014

Soundwave said:

Specs do matter for consoles. Handhelds are a completely different business. The SNES would've been routed by the Genesis if Nintendo opted to just keep it at NES tech levels for examples. Third parties would've all just made games for the Genesis instead. 


Hehe, but I don't think that would ever be a possibility, Nintendo has previously said that they wanted 16 bit architecture for the original NES. I miss the Nintendo who actually made new hardware. But who knows, if the Wii U was as powerful as PS4 it would still be a failure.



Yep.

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forethought14 on 17 January 2014

Looks like it's Iwata who will be "please understand"-ing the current situation...



SubiyaCryolite on 17 January 2014
superhippy420 said:
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.

If you insist. Future Nintendo devices with zero 3rd party support will do "wonders". The DS had tons of Japanese support. Same with the 3DS. Western developers largely ignore handheld gaming. Wii was a rare runaway success. Nintendo's own core games barely doubled what they achieved on GameCube despite the significantly larger install base. Furthermore the amount of third party games on the cube can't compare to that on the PS2 or even the XBox which saw a lot of PC only devs migrate.



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

The NX will be a 900p machine

zorg1000 on 17 January 2014
superhippy420 said:
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.

Yes they do mean something. SNES sold closer to 50m and that was a time when the video game market was much smaller, it had well over 50% marketshare back then. And look at one of the biggest games on it, Street Fighter a 3rd party franchise sold over 12m on SNES. The Dragon Quest & Final Fantasy series each sold about 8m on SNES, Mortal Kombat did about 5m, the Disney games Aladdin+Lion King+Magical Quest sold 5m. Mega Man sold 2.5m, NBA Jam games sold 2.5m. 3rd parties helped SNES alot, especially in Japan where 12 of the top 20 best sellomg games were 3rd party.



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

zorg1000 on 17 January 2014
kowenicki said:
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

to be fair you actually said:

Hmmm, maybe I don't fully understand the financial jargon from the links, but if they posted a loss rather than a profit, couldn't a large portion of these losses actually be DEVELOPMENT costs?! We all know the 2014 schedule for Wii U is packed with both announced AND unannounced (or at least only acknowledged to exist, nothing has been shown) games being developed straight from Nintendo's pockets. If we know WHAT is causing the loss, it may not be as bad as it seems...
Think about it, what if they're posting a loss because 2014 is about to blow our minds with how much money they've been pouring into development of games during this 2013 fiscal year?!

 

So you never mentioned marketing, you talked about development.... and less than a 1/3rd is large portion? Perhaps. 

But the point was you were making was that this was perhaps ok'ish because the cash was being spent on bringing new games from development spend.

 

How in the hell is 1/3 not considered a large portion? Especially when that equates to 23 billion.



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

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Proxy-Pie on 17 January 2014

Well, look on the bright side, atleast this'll get them desperate again.



Mythmaker1 on 17 January 2014

I imagine most of us saw these WiiU figures as totally unrealistic months ago, if not when they were first announced. As far as the 3DS numbers go, those might not be quite as bad, but they're still painfully optimistic in retrospect.

I'm not surprised Nintendo is losing money, given their sales numbers. What I still don't know is what Nintendo was thinking when they made those Wii U estimates. Perhaps they really are out of touch, but I can't imagine they're that unplugged.

If sales don't hit their stride this year, I think Nintendo will almost have to suspend production of the system.



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

fauzman on 17 January 2014

Im surprised. I knew wii u saleswouldnt be great, but I thought the massive 3DS sales would make up for it in a big way. Still they nodoubt have a ton of money in the bank and wii u sales have picked up a bit. 2014 profit?



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JoeTheBro on 17 January 2014

Hopefully Iwata doesn't get fired. Never met him but he seems like a great guy. It could suck for gamers if he was replaced with a "mobile makes money" business guy.



Links

superhippy420 on 17 January 2014
zorg1000 said:
superhippy420 said:
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.

Yes they do mean something. SNES sold closer to 50m and that was a time when the video game market was much smaller, it had well over 50% marketshare back then. And look at one of the biggest games on it, Street Fighter a 3rd party franchise sold over 12m on SNES. The Dragon Quest & Final Fantasy series each sold about 8m on SNES, Mortal Kombat did about 5m, the Disney games Aladdin+Lion King+Magical Quest sold 5m. Mega Man sold 2.5m, NBA Jam games sold 2.5m. 3rd parties helped SNES alot, especially in Japan where 12 of the top 20 best sellomg games were 3rd party.

How many of those though actually moved the consoles.   Super Mario World sold 20.6 million.  Super Mario All-Stars sold 10.6 million.  The DKC's combined sold 18 million.   Those are what moved most of the consoles.    The Genesis had most of those 3rd party games too (not Final Fantasy) but Nintendo killed them in terms of the 1st party games and that was that.   I have no doubt that 3rd party games can help Nintendo somewhat, but it will never be a big driving force.