Nintendo's First Ever Annual Loss is Imminent
Nintendo's First Ever Annual Loss is Imminent
Posted 10/27/2011 at 8:09am
| by Paul Lilly
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Nintendo isn't accustomed to losing money on an annual basis. In fact, it's never before happened, at least not in the last 30 years in the electronics business (Nintendo's history actually dates back to 1889 as a playing card company). Be that as it may, Nintendo now expects to lose 20 billion yen, or about $264 million, for its fiscal year ending on March 31, 2012, the company said.
That's a complete 180 turnaround from Nintendo's previous forecast, in which it projected a 20 million yen profit for the year. But losses for the first six months are already at 70.2 billion yen, or $926 million. One of the main reasons for this is the poor reception to Nintendo's 3DS handheld console, in which Nintendo was quick to slash the price.
"Sales of Nintendo DS hardware and Nintendo 3DS software were weaker than expected," Nintendo said in a statement (PDF). "In addition, yen appreciation was beyond expectation level and the exchange losses totaled 52.4 billion yen. These are the main factors of the variance."
Wii sales haven't been a whole lot better. Nintendo sold 3.3 million Wii consoles during the first half of its fiscal year, down from almost 5 million Wiis one year prior. Wii software sales dropped from 65 million units a year ago to 36 million so far this year.
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TigerNightmare
October 27, 2011 at 11:09pm
If they wanted to make money, they should have made more games. Glancing at my Wii library, 2009 was a pretty big year with Super Mario Galaxy 2, New Super Mario Bros. Wii, Metroid Prime Trilogy and Punch-Out as well as decent third party titles like Dead Space Extraction and Muramasa. I don't own one damn game from 2011. The only Wii game I bought this year was from 2010, Kirby's Epic Yarn, which was on sale.
Pretty easy math, Nintendo. Make some decent games, make some decent money. I really doubt the new Zelda game will turn the tide (but I'm sure it'll help).
Caboose
October 28, 2011 at 8:16am
From the looks of it, Skyward Sword is going to be an awesome game!
I think that Nintendo needs to bring back the "Nintendo Seal of Quality" that it had back in the NES/SNES days. Those were some of the best, and most quality games around. Sure, N64 and GCN had their share of top games, but no where near what the classics had.
mhouston100
October 27, 2011 at 8:00pm
Growing up with Nintendo's (through the Nintendo vs. Sega war!) I'm a bit disapointed that they are so childish now. Around the release of the Wii, Xbox 360 and PS3 I was tempted, until I saw the game library and realised how childish it was. In the end I spent the money on my gaming rig and never looked back.
I know that not all of them are but the majority are crappy games aimed at a PG audience, and nothing looks to have changed.
newegg911
October 27, 2011 at 2:26pm
This is what happens when you fail in inovate and rest on your laurels forever.
I've said this when it first came out and I've never budged an inch: The Wii is a one time gimmick.
thetechchild
October 27, 2011 at 5:28pm
And yet, the Kinect isn't?
Gimmick it might be, but the real problem isn't that it was a gimmick -- it's that they don't have any new ones. Gimmicks are referred to as innovation when popular.
Caboose
October 28, 2011 at 8:14am
The Wii has been pretty popular. TO the point where Sony had to come out with the "move" and Microsoft with Kinect.
I've found that the only people calling the Wii a gimmick, are the ones who are "too cool for Mario" and think that "every game ever released on a Nintendo console in the history of everything is a kid's game."
Trooper_One
October 27, 2011 at 1:21pm
The whole portatble gaming system like 3Ds or the PSP is just nothing but a dying breed. My iPhone gives me a great selection, cheap, easily obtained in the App Store (some free, some paid). The screen size is nearly the same.
Why would I want to pay $100 to $250 for a system with limited utility? For a bit more, I'll rather save and get a tablet for additional size and function.
bling581
October 28, 2011 at 10:17am
Mobile gaming has a lot going for it, but it will never compare with a dedicated gaming system. If you actually take the time to think about it there's a whole list of reasons why a handheld is better than a phone. Yeah, mobile games are cheap, but you know the saying you get what you pay for. I have bought some pretty nice games for $1, but most of the better titles cost $5-10.
mhouston100
October 27, 2011 at 7:57pm
It's not quite there but damned close!
My Desire HD serves my portable gaming needs (as small as they are), even my brother's kids don't want a 3DS for Christmas, they are all asking for a phone the same as Uncle Matt!
By the time these kids are at the buying stage these exclusive portable gaming devices will be gone'ski!
Tech-Hedz
October 27, 2011 at 10:53am
Wait till their next crap system comes out and they experience more losses. Underpowered and more crappy games. Nintendo needs to stop selling gimicks and needs to innovate.
Caboose
October 28, 2011 at 8:12am
Ok, so the Wiimote control system was a gimmick eh? Even though it was a new innovation on controlling games. And has been so successful that Sony and Microsoft have had to come up with their own variations (Sony and their obvious copy and Microsoft with their full-body motion control).
The Wii U will be more powerful than either PS3 or 360. Current developers are amazed at what they can do with the hardware, and are bringing some of the most popular game series over to the Wii U. Heck, Wii U will be getting GTA5.
Crappy games are in the eye of the holder. Yes, there is a lot of shovelware on the Wii, and the only way to combat that is for Nintendo to bring back the "Nintendo Seal of Quality" that they had on the NES and SNES.
The Wii U will be an innovation in control AGAIN. One which Sony will duplicate with the new PSP I'm sure, and Microsoft will end up trying to duplicate as well.
But hey, games are all about how much horsepower your console can put out, right?
Marthian
October 27, 2011 at 10:21am
My reasons:
Wii
Everyone that wants a Wii has a Wii
Game selection is terrible
3DS
innitially more expensive than a Wii
game selection is terrible
3D headaches
bling581
October 27, 2011 at 9:35am
I'm interested in the 3DS but first they need to expand their game selection. The current selection is pretty slim and none of the titles really hit me as spectacular. The whole 3D thing on the DS doesn't exactly look that great either, but I'm more interested in the better graphics and other features.
Scatter
October 27, 2011 at 9:46am
Well to be fair Nintendo really doesn't sell crap. They just allow publishers to release crap for their consoles. What ever happened to the Nintendo Seal of Quality?
Tech-Hedz
October 27, 2011 at 11:00am
Nintendo sells cheap hardware and gimmicks for marked up prices. That is their problem and people are on to them. They need to put some quality time into what they develop and quality hardware in what they sell. Even if what hardware they sell causes them to lose profit, the games should more then make up for any loss in hardware sales.
Scatter
October 27, 2011 at 5:41pm
Nintendo never has and probably never will sell a console that they lose money on for every sale. As for gimmicks, the 'gimmick' that they built into the Wii proved to be so successful that it forced both Microsoft and Sony to copy it and release a varient of it for their consoles AFTER they both originally laughed at it and also called it a gimmick.
The thing that most people can't seem to get is that Nintendo makes consoles for kids. You can probably count the number of mature games that they've released on one hand. So yeah, most older teens and adults into hardcore gaming probably outgrew Nintendo and have your attitude. But there probably was a time in your life when you were younger when you liked their games.
and as far as quality goes, I've read tons of posts from people on web forums complaining about their Xbox360s and PS3s failing but I rarely ever read about a Nintendo product failing. In fact the last real Nintendo problem that I remember was back in the 80's and 90's with the NES blinking screen when the cartridge connector wore out.
Blues22475
October 28, 2011 at 1:53pm
Agreed. My understanding is that the Nintendo systems were family oriented. I mean wholesome family orientation not so bloody gory game where only the adults can play. Ever since the NES they have been pushing the fact that they want the whole family to enjoy their games. It became abundantly apparent when they actually announced something a similar idea when the gamecube was out and about.
Caboose
October 28, 2011 at 8:08am
Its that "hardcore gamer" bit that irks me with some people. They are so obsessed with FPS' and insane violence, that they refuse to look at other games out there. Even games that are leaps and bounds in superiority to their precious shooters. Have more depth, quality, gameplay, replay value and story.
The Metroid and Legend of Zelda series are 2 of the longest running game series. Both series are very difficult, and have a tonne of depth. Not to mention an amazing story, and absolutely beautiful visuals. But most gamers seem to ignore all that for "guns, explosion, blood and gore!!!!11111eleventyone".
I like my share of FPS' (primarily on the PC). I enjoy kicking back and playing Gears of War, Battlefield Bad Company or Halo (sorry, just can't get in to resistance, and I hate FPS' on the PS3. The controller is just so.... ugh...), but I've actually got more enjoyment out of playing Paper Mario, Pikmin, NEW Super Mario Bros., and Trauma Centre.
And ya, the "gimmick" that people keep throwing around at Nintendo. How's that gimmick working out for the PS3 and 360 eh? Must be pretty effing good if Sony copied it, and Microsoft made their own variation.
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