Nintendo Slashes Profit Forecast by Four-Fifths

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Nintendo doesn't realize the pile of money they could be standing on once again. It's easy- so easy, but they refuse to just do it.

Come out with a serious, mature, direct sequel to Ocarina of Time.

Your money problems will magically disappear for a while.

First Square-Enix, now Nintendo. BioWare's probably next.

I hear more and more people saying we're headed for another industry collapse. I really hope that's not true.

Xman490:
I hope that Nintendo tries hard to get back to core gamers with the Wii U. Nintendo-sponsored user-generated content and online play are what I hope Mario and Zelda will be treated to instead of simply the 64 experiences remade with new puzzle-solving tools.

I think you've got it backwards. The 'core' Nintendo fans did buy the Wii, and did so precisely because it gave them 'the 64 experiences remade with new puzzle-solving tools,' not in spite of that.

On the other hand, if Nintendo starts messing with the status quo of its core franchises, that will alienate a great number of people who call themselves the core audience, or the true fans, or the Nintendo die-hards, or whatever.

Sabazios:
Maybe the problem started when they alienated their core fans, and they now realise that the people who were merely there for the 'new hot thing' are shallow and fickle, and wouldn't actually splash out any further, and now they're left with 3 groups: those who didn't buy a Wii, because they disliked the direction Nintendo was going in, those who bought a Wii, and only played Wii Sports and shovelware, and those who bought a Wii, and use it as a dust collector.

Maybe they should make some Facebook games.

This is a short term profit, long term problem kind of thing. They sacrificed it to get the non-gamers into playing games, and when it's shown that many do not want to get any more than a toe wet in the water. For a while, they were happy, but now the consequences of this are showing themselves.

I pretty much see this as not far from the truth, Nintendo has had to take Profit losses for the past 3 years, this one probably being their biggest:

http://latimesblogs.latimes.com/entertainmentnewsbuzz/2011/04/nintendo-wii2-at-e3-company-had-a-tough-year-in-2010.html

Battered by declining sales of its Wii video-game console, Nintendo on Monday announced it would introduce a new console in 2012. The announcement came as Nintendo posted double-digit declines in both sales and profit for its fiscal year ended March 31.

The Japanese game company said its revenue slumped 29% to just over one trillion yen, or roughly $12.4 billion, last year. Profit slid 66% to 77.6 billion yen, or $948 million. Nintendo had forecast for the year, issued last May, for sales of 1.4 trillion yen and net income of 200 billion yen.

It was the second year that Nintendo's earnings took a beating. During the previous fiscal year ended March 2010, sales were down 22% while profit fell 18%.

Losses due to the strong yen, which meant sales outside of Japan converted to fewer yen, accounted for $604 million of Nintendo's annual loss.

But the company's core sales of consoles and games also were to blame. After enjoying a massive wave of popularity, sales of the Wii fell 25% to just over 15 million units last year, compared with 20.5 million the prior year.

The Wii has "outplayed", all those soccer moms and grandmas are probably done with it by now as it isn't the "new thing" anymore, they starved their usual customers of games they actually wanted pretty much and lost a lot of those too...

Then the 3DS...

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Personally I see their "Wii U" as kind of a desperation move because of declining profits... I'm just not sure that after releasing a gimmick-based console and alienating a large part of their userbase the best thing they can do is release a console that is based even more on a gimmick instead of a solid console with proper software support... especially if Microsoft (although being on the same "way" right now that Nintendo was a few years ago, all but abandoning their "core" crowd in favor of "Kinect" titles) and SONY "swoop in" at the next E3 with one of their own while Nintendo is trying to get all the 3rd party publishers from nowadays they've also shunned for years on board and they'll sit on another gimmicky console with outdated tech again.

Thank you Capitalism. I might buy one now.

I'd say this is a good time to buy Nintendo stocks. I mean, they're gonna recover from this, right? Right??

I'm glad this is happening; and with the move not selling the gameing industry might finally get the shake it needs.

Maybe this will be a wake up call.

Hopefully Nintendo will start making some good ideas.

We need a new Handheld. And no, that does not mean releasing another version of the DS. And adding 3D functionality doesn't make it any better.

"well that didn't work...let's make the Wii print money again. bring out the Wii 2! anyone got a sillier name instead of just slapping on a 2?"

Wii U! :P

Atmos Duality:

Baresark:

I see your point, but I don't see the Wii U as a huge gamble at this point. No one can be sure what the price point is going to be, but you can bet it will be competitive to current offerings of the Sony and MS.

You're correct there. It has to compete with Sony (PS3) and Microsoft (Xbox 360).

I don't think they "shunned" anyone either.

Tell that to the folks running Operation Rainfall. Nintendo is intentionally withholding three high profile Wii games from the US market. Why? Because Nintendo feels those games don't fit into the market profile of the US; specifically, the games are (as they openly admitted) "Not casual enough".

They simply offered something that had just enough at a cheap enough price that you basically couldn't not own it. They are great at business, and there is no doubt in my mind they are not going anywhere. They still have the market completely cornered on the hand helds, and the price cut of the 3DS is only going to solidify that further. They will make less profit off of the 3DS, but still make a profit.

That I agree with. The 3DS is looking to be Nintendo's future lifeline.

Also, I don't understand your second point. Watched the other companies saturate the market with what? And how is that Nintendo's fault?

Nintendo has almost completely neglected hardcore gamer for the last 5 years; relying primarily on first party titles and casual shovelware for profit. Off the top of my head, I can think of a total of 4 (among HUNDREDS) of Wii titles that didn't fit into either of those categories.

Because Sony and Microsoft didn't challenge that market, Nintendo was able to pull ahead in profits. However, the Wii U is a (pun inbound) U-turn for the direction of their company; at E3, Nintendo marketed the Wii U directly to hardcore gamers.

The only way I can see the Wii U not having a good launch is if the launch lineup isn't any good. I think they literally NEED to have a staple IP on release. I do agree that the Wii was a runaway success, one that may very well be impossible to repeat, for anyone.

The Wii *was* a financial success; no doubt about that. But that success came at a price.
Nintendo sacrificed the goodwill of hardcore gamers through years of neglect.

Meanwhile, Sony and Microsoft have taken over the entirety of the hardcore console market and that is my second point.

As a personal note, I still feel cheated for having purchased a Wii. It's a useless white brick that sits in my den with no games I care about.

But I don't agree that motion controls are just a gimmick as so many people seem to thing. The games done well with motion controls were fantastic. It's just that far too many developers did not make the Wiimote control well.

Just a few thoughts. :p

I disagree. The motion controls never felt natural to me, and most Wii titles I played felt like they would have controlled better with a regular gamepad.

Wow, I just received about a week and half of responses in one refresh. I don't know why I wasn't getting it.

OT: I forgot about project Rainfall. That was complete crap, you are right about that. Also, I don't think that the Gamecube was devoted to hardcore gamers as well. They had some exclusives that were hardcore oriented, all of which later came out on the competition. But, the Wii has some hardcore aimed games as well, not as many as the gamecube did though.

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