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Forums - Nintendo - FORTUNE: The game isn't over yet for Nintendo's Wii U

Soundwave said:

Logically too ask yourself if the Wii U is making a profit, and the 3DS is making a profit (that has actually been confirmed by Iwata), then how is Nintendo still losing money pretty much every quarter like clockwork? I mean they've had some big selling games like Pokemon X/Y, 3D World, Animal Crossing, etc. so that can't be the culprit. It has to be Wii U hardware that's negatively impacting their bottom line. 


We haven't gone through the quarter yet where both were sold at a profit (supposedly the WiiU recently, and so would not have yet shown on quarterly reports) and where they hadn't also sunk 200 billion yen into a new facility for R&D and games development (ie. last quarter year/quarter).



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curl-6 said:
Soundwave said:

Well basically Iwata never said that the Wii U wasn't being sold at a loss. People got hold of a Japanese Q&A financial briefing and mistranslated a bunch of his answers. 

When the officially translated English version was put up by Nintendo, it turned out Iwata didn't say what people thought he did. 

Logically too ask yourself if the Wii U is making a profit, and the 3DS is making a profit (that has actually been confirmed by Iwata), then how is Nintendo still losing money pretty much every quarter like clockwork? I mean they've had some big selling games like Pokemon X/Y, 3D World, Animal Crossing, etc. so that can't be the culprit. It has to be Wii U hardware that's negatively impacting their bottom line. 

R&D seems a likely culprit; first for Wii U, then for amiibo, then for the "new 3DS", and now probably for a Wii U slim or whatever they're cooking up next.

Exactly.  The WiiU launched at $349 with about a $50 loss per unit.  Within its first year it had to have its price slashed by $50 so it stands to reason that it took until May for the system to stop incurring a loss.  The fact that they are opting for bundles this holiday instead of another price drop speaks volumes that Nintendo is going for profit right now, and a $299 Smash bundle during the holidays should move a decent amount of consoles.

If Nintendo is able to report a profit for fiscal 2014 next March/April, then it would be the perfect time for a drop to $249 - and I think that a Mario Maker bundle is the way to go.  Call me crazy; the game could certainly release to a mediocre reception, but until it does, I still maintain that Mario Maker could be WiiU's best chance at building some mass-market hype.



There is lots of hope for WiiU. Mario Kart 8 pushed sales much and many games are coming on the system! And not to mention, Smash and Amiibo. Nintendo Wii U CAN still be the second for this gen!!!



Jizz_Beard_thePirate said:
Pretty much. Nintendo had a really rough start which probably made sure the wiiu isn't gonna do zomg but that doesn't mean Nintendo will give up on it and neither will the fans so it will sell well. Not great but well which is way better than terrible


I totally agree! I haven't given up on the system yet, especially considering all the great games coming out for it in the future!

Btw, I started watching Love Lab because of your sig, hahaha :D



   

Ultravolt said:
Jizz_Beard_thePirate said:
Pretty much. Nintendo had a really rough start which probably made sure the wiiu isn't gonna do zomg but that doesn't mean Nintendo will give up on it and neither will the fans so it will sell well. Not great but well which is way better than terrible


I totally agree! I haven't given up on the system yet, especially considering all the great games coming out for it in the future!

Btw, I started watching Love Lab because of your sig, hahaha :D

Loll awesome!! Thats great to hear loll. Hope you enjoy it!



                  

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NickK said:
There is lots of hope for WiiU. Mario Kart 8 pushed sales much and many games are coming on the system! And not to mention, Smash and Amiibo. Nintendo Wii U CAN still be the second for this gen!!!

That's the spirit! Nintendo was in a deep hole last year with the lack of killer apps and advertising, and simply a confusing product with a weird name and a high price. This year they're really starting to climb back up with some great games, a hype E3, and a new toy incentive. Still could up the ads a little more though.



Vena said:

We haven't gone through the quarter yet where both were sold at a profit (supposedly the WiiU recently, and so would not have yet shown on quarterly reports) and where they hadn't also sunk 200 billion yen into a new facility for R&D and games development (ie. last quarter year/quarter).

The quote that people misinterpreted as the Wii U being profitable was at the end of the last fiscal year.  There has been one quarter since then where they still had losses.



Yakuzaice said:
Vena said:

We haven't gone through the quarter yet where both were sold at a profit (supposedly the WiiU recently, and so would not have yet shown on quarterly reports) and where they hadn't also sunk 200 billion yen into a new facility for R&D and games development (ie. last quarter year/quarter).

The quote that people misinterpreted as the Wii U being profitable was at the end of the last fiscal year.  There has been one quarter since then where they still had losses.

Doesn't mean Wii U caused that loss; they've been restructuring, building a new headquarters, doing R&D on the new 3DS...



The one thing I absolutely can't tolerate any longer when discussing Wii U's success is "analysts" continuing to claim lack of software is the issue. Are they out of their mind? Wii U has decimated the Xbox One and PS4 in quality exclusive software you can't play anywhere else,a nd by the time 2014 ends there will be an even bigger gap between the number of great Wii U titles and the number of great One/PS4 ones. It's total hypocritical bias and BS when you compare it to the miserable black hole that are PS4 and X1's current exclusives, and I'm sick of it. Nintendo's real problem with Wii U has always been in the image and PR department. The console wasn't hyped and sold to the public by Nintendo properly before release, and they've continued to do a cruddy job marketing it since release. I think this year they've finally started to turn their image problems with it around, but they still need to be better on the marketing and awareness front.



curl-6 said:

Doesn't mean Wii U caused that loss; they've been restructuring, building a new headquarters, doing R&D on the new 3DS...

Building a headquarters wouldn't cause an operating loss.  R&D costs were up only 12.7% YoY.  That is an additional 1.75 billion yen, their operating loss increased by 4.55 billion yen.  Their Ordinary and Net Income also went from profit to loss.