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

Yakuzaice said:
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.

Restructuring too, remember.



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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.

No, it wasn't; it was from an investor meeting in May:

http://wiiudaily.com/2014/05/nintendo-no-more-wii-u-loss/

They have not yet had a full quarter since the announcement.



curl-6 said:

Restructuring too, remember.

The restructuring loss was only 1.4b yen, only factored into net income, and was basically equaled by the tax credits they received that quarter.



archbrix said:

No, it wasn't; it was from an investor meeting in May:

http://wiiudaily.com/2014/05/nintendo-no-more-wii-u-loss/

They have not yet had a full quarter since the announcement.

The investor meeting was covering their financial results ending in March.  Iwata's answer was covering the period after the last fiscal year, not the period starting in May.



The article completely lacks industry context. To people largely ignorant of the market it seems like the whole reason for Wii U underperforming is lack of software, which it doesn't actually lack anymore, and people playing on their tablets, as if the console market in general is suffering a catastrophic collapse. Even I'm not that pessimistic, and seeing how PS4 has continued to sell very well through the northern summer and has been spanking Wii U everywhere but Japan, which might be the onebplace there is a catastrophic collapse in home consoles, puts a totally different context to Wii U's predicament. Fact is it is failing to compete with its direct competition, and this rather than broader console existential issues is the reason it is where it's right now, and has very little chance of any meaningful turnaround.
It is really Nintendo's systemic and long term (basically since NES) failure to understand the gaming market which sees Wii U where it's at. Or they ilunderstand the gaming market, but choose to only appeal to a niche minority. Make no mistake, Wii did not appeal to the gaming market, it appealed to the non-gaming market and that is why it only had 4 years of huge sales, followed by a collapse both for the Wii and it's next gen offering. And they still don't get it.



“The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.” - Bertrand Russell

"When the power of love overcomes the love of power, the world will know peace."

Jimi Hendrix

 

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I think they are just holding on until the fusion comes out.

The new 3ds comin extended the 3ds support.



Pocky Lover Boy! 

Yakuzaice said:
curl-6 said:

Restructuring too, remember.

The restructuring loss was only 1.4b yen, only factored into net income, and was basically equaled by the tax credits they received that quarter.

Source?

Also I have yet to see any proof that the Wii U statement was misconstrued.



curl-6 said:

Source?

Also I have yet to see any proof that the Wii U statement was misconstrued.

Their first quarter earnings release.

When all we had was the Japanese Q&A people were claiming that Iwata said the Wii U is no longer being sold for a loss.  When the official english version was released it actually said there would be almost no loss on the 3.6m units this fiscal year because most of the inventory had been manufactured in the previous fiscal year where the loss was booked.



Yakuzaice said:
curl-6 said:

Source?

Also I have yet to see any proof that the Wii U statement was misconstrued.

Their first quarter earnings release.

When all we had was the Japanese Q&A people were claiming that Iwata said the Wii U is no longer being sold for a loss.  When the official english version was released it actually said there would be almost no loss on the 3.6m units this fiscal year because most of the inventory had been manufactured in the previous fiscal year where the loss was booked.

Again, show me the source.



curl-6 said:

Again, show me the source.

http://www.nintendo.co.jp/ir/pdf/2014/140730e.pdf

What sources have you shown to back up your claims?