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Forums - Nintendo - Nintendo this gen making profit despite Wii U is their biggest faile ever

I don't care. I love Splatoon.



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It took 3 years, but at least they shifted the Wii U to profitability.



 

              

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Aeolus451 said:
You made your point in the other thread. This thread is really pointless because of that. If everyone posted a thread in response to other threads they didn't like....well this forum would be full of spam.

Yah!

Just like how "Nintendo Won e3" thread was made then someone made a "Nintendo Did Not Win e3" thread. 



Pocky Lover Boy! 

RolStoppable said:
That's just semantics when you consider the big picture:

1. Nintendo has performed far below their own expectations regardless of the metrics you use.
2. Nintendo has not performed so badly that they should seriously consider to stop making hardware.

This. Part of the profits (and losses) are from exchange rates or others factors out of the operations. This gen is not good by any metric but it's not going to kill the company.

 

Anyone believing that deserves a smack to wake up.



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twintail said:
Cloudman said:
It took 3 years, but at least they shifted the Wii U to profitability.

But it's not profit atm, not until potentially the end of this fiscal year and we don't have those readings yet.

And the OP lists Net Profit, which can include things such as exchange rates, change in property value etc. For the actual performance of products it's much better to look at operating profit which is income from sales basically.

Nintendo will be lucky to have an operating profit overall for the generation by the end of this fiscal year, by their own projections they will not. Even if they did it's safe to assume the 3ds is a lot more profitable than the WiiU and as such the WiiU has most likely not turned a profit.

Nintendo has had an Operating Loss of $925.21 Million overall from April 1st 2011 to March 31st 2016.



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So the worst selling console in Nintendo history leads to a 9m loss? Whats the problem?




2. Nintendo has not performed so badly that they should seriously consider to stop making hardware.

Thats not what the internet told me



tbone51 said:

2. Nintendo has not performed so badly that they should seriously consider to stop making hardware.

Thats not what the internet told me

I always trust the internet.



I think that the more important metric is brand recognition, not absolute profit. The fact is that in 2015, for the first time in the last 30 years, Nintendo fell out of the top 100 most recognizable brands. It really doesn't matter if Nintendo continue's to make a profit when nobody knows who they are. For a company like Nintendo to sustain itself, it needs to be reaching new audiences and creating future fans. Over the past 4 years, Nintendo has completely fallen off the radar with young gamers. Thanks to the Wii U, kids now know and love Angry Bird more than Mario. This is a huge problem for Nintendo because when these kids grow up, they will not introduce their children to Mario and Link and Nintendo (like Sega) becomes a forgotten thing of the past.

Fortunately, Pokemon GO may have changed all of this. Even if Nintendo doesn't make a cent of profit off of Smartphone gaming, it is absolutely essential that they put out some more viral hits just to boost people's awareness of Nintendo's brand. Nintendo really needs to think of a way to get a Mario hit on the smartphone, Mario is an even bigger mascot for Nintendo than Pikachu is and so getting kids playing Mario again is so important.



Miyamotoo said:
 

Profit for this year is guaranteed, especially with Pokemon GO...Nintendo forecast for this year is profit of 35b yen and thats around $335m, we will see how much exalty will be profit at end of year, but some profit will definitely be there.

I understand your reasoning, but you can't invalidade his previous thread about Nintendo losing money by simply adding a forecast to it. His thread is correct now, while it will probably not be correct after the next fiscal report.

Either way, going by his small loss or your small profit really doesn't make a difference. Everyone know that Wii U underperformed so it's obvious that it would impact their profitability. 3DS kept it afloat. But now both are basically on the rearview mirror, I don't see much point in discussing their performance anymore.

With 3DS selling way less than the DS, even if the numbers are still respectable, and Wii U underperforming badly, I don't have to look at financials to know that they won't look amazing.

NX plus their mobile games is what can have a real impact from now on. The first one has to reinvent itself and counter the effects we saw in the previous gen. Pokémon Go is already here and is a success. If they manage to keep a good retention and monetize it decently, it will give enough money to guarantee some more games on mobile. They already showed interest in creating joypads for mobile devices, that could be great: imagine releasing 2D Mario games and an official controller? Equals profit for me. They can release a bunch of games on mobile without canibalizing their current console/handheld market and use the extra media attention to drive sales for their hardware business. I can see a 2D Mario game being released in the same time than a mobile joypad and a big 3D Mario game for NX, maybe even with one game unlocking items for the other. It will be interesting to see if Pokémon Go will have an impact on the sales of the next Pokémon for the 3DS and the hardware itself.