Nintendo earnings warning predicted

Analysts predict Oct. 29 earnings report will warn of annual profit falling 11 percent thanks to "sluggish sales" and a strong yen.

Nintendo started 2009 on a high note, announcing nine-month revenues of $17.1 billion and touting another hit holiday sales season in the books. However, by July the picture had turned decidedly less rosy, with sales falling 40 percent and profits sinking 60 percent.

Now, Bloomberg reports that analysts are predicting that the Mario factory will cut its full-year revenue forecast as part of its upcoming quarterly earnings report, expected October 29. Analysts also expect the Kyoto-based company to announce its first profit decline since the launch of the DS in 2004.

September saw the PS3 outsell the Wii for the first time ever in the US.

Bloomberg compiled the predictions of 10 analysts, with the group's median prediction having net income falling 11 percent to ¥249.3 billion ($2.5 billion, £1.6 billion) during the fiscal year ending March 31, 2010. According to Satoru Kikuchi, an analyst at Deutsche Bank AG in Tokyo, the fall can be attributed to "sluggish sales in the first half [of the year], the price cut for the Wii and currency-related impact. Nintendo may cut its profit projection about 30 percent."

The falling figures come hot on the heels of the latest NPD Group report, which showed that Sony's PlayStation 3 and Wii enjoyed a US sales boost thanks to recent price drops. On September 27, the Wii dropped to $200 (£121), and the last week of August saw the introduction of the new $300 (£182) PS3 Slim.

Though the PS3 was September's top US console with 491,000 units, it still lagged behind the DS's 524,200-unit haul. Also, Nintendo pointed out that the Wii's 462,800-unit total jumped 67 percent over August, even though the console's price drop took effect during the last week of the month.

Last--and, sales-volume-wise, least of the big three--Microsoft fired its own shot in the price wars. It dropped the price of its Xbox 360 Elite to $300 (£182), helping the software giant sell 352,600 units.

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Discussion

178 comments
Cabal23
Cabal23

But the article is about sales, not quality. Also high sales means someone bought it and Nintendo made a profit. It doesn't make sense.

SicklySunStorm
SicklySunStorm

@ Cabal23 - sales figures do not automatically mean a good product, just good revenue. Think of it Nintendo as that damn talentless boyband/girlband that clogs up the charts and sells bucketloads.... anyone with half a brain know they're crap, but they still hum and tap along if they hear one of their awful songs and have probably bought one of their albums "for a friend". Nintendo have made some decent games on the Wii, and I've enjoyed them, but they're far overshadowed by the question mark over actual quality titles, and the place at which the Wii fits into the gaming market. There's a dark side to the Wii and how it's changed our games

Sony_Microsoft
Sony_Microsoft

@Cabal 23 I checked the list (http://news.vgchartz.com/news.php?id=3364). Just because you sell a lot of games doesn't mean the games are good. You should have placed a link to the reviews or scores of wii games to prove your point. I'm not saying the wii has bad games, I like some wii games actually, even if I'm a PS3/360/PC gamer.

Cabal23
Cabal23

All the best selling games are Wii games. Not a single PS3 or 360 game can compete with the Wii. So for that reason alone I can't fathom their loses.Say what you want about gimmicks, but that supposed gimmick is in more homes world wide than PS3 and 360 combined. I don't understand what they are doing wrong? See this link for top selling games 0f 2009: http://news.vgchartz.com/news.php?id=3364

jeffv541
jeffv541

I wannanother yoshistory!!!!!!!

de_graph
de_graph

want better sales? make better games... ...pretty simple. just because the system cant compete graphically, has nothing to do with it. the problem is, is that wii games have ZERO standing power. wii simply sells product off a name title (i.e. Mario) or gimmick (i.e. wii fit). if you want to sell games and systems, unfortunately, you can't just repurpose games and slap new titles on them.

thedemon44
thedemon44

When the Wii hits about 150$, ill buy one again. I cant deny how much I miss Tiger Woods 07 and Madden 08. Those two games, from those two years are the best golf and football I ever played. I thought the 360 versions would be good, but they really can't compare. Too bad the Wii doesnt have anything else to offer. But I sold it for over 200$, so no matter what, its win-win in the end.

NAWAF005
NAWAF005

Nintendo will save itself if it releases a new Wii.

HerbalVideogame
HerbalVideogame

By the way, your list did end. And all of them you listed, they're story lines don't go anywhere close to the kind of depth I'm talking about. The kinds of hours that reach the 100's, 150's. Any FPS is hardly revolutionary OwnageGuy. Not much has changed since Doom II. "I just don't got." You just don't "got" a lot of things.

HerbalVideogame
HerbalVideogame

@ OwnageGuy Word up I'm a fanboy. :p Sony and Nintendo all the way. Color me fanboy! I'll scream and shout it. SuperFanBoy2Turbo. Go Sony, Go Nintendo. I like the party don't drink Bacardi cuz I'm not lookin to throw up on nobody. :p :p :p Would someone like to tell me what's wrong with bein' a fanboy? More fanboys please! Just don't give me the Microsoft ones! :D

Fernicum
Fernicum

What does a profit prediction have anything to do with gaming on the Wii? It's either you like the games or not. Not unless you own Nintendo stock and I really with I had the money to buy some back in the gamecube days hell I'd be rich now, wouldn't I?

Antherian_being
Antherian_being

Trolls and fanboys, shoot me 4 this but the Wii has the most potential - the controls r innovative and the Conduit controls, while not being attached to a fantastic game - r the best in the industry. As i said Bag this all u want Trolls and fanboys

Antherian_being
Antherian_being

im an XBOX360 / Wii owner and, although gameplay wise the halo series (Of which i own every game) outplays every wii game (message me if im wrong) the wii outchurns some fantastic friendly partyu games that r gr8 4 younger kids and family friends

Flint247
Flint247

@chrispicard We really don't need trolls at a time like this.

OwnageGuy
OwnageGuy

@chrispicard no their not games. they actually sell boxes with blank discs.

chrispicard
chrispicard

They sell video games on the wii?!...when did this start happening?

kavadias1981
kavadias1981

I love playing my Wii just as much as my PS3.

kavadias1981
kavadias1981

I love playing my Wii just as much as my PS3.

OwnageGuy
OwnageGuy

i just bag the wii. xbox360 and ps3 fanboys join forces and expel the putrid wii from our gaming world :)

OwnageGuy
OwnageGuy

@HerbalVideogame wow fanboy much?! nintendo didn't do anything revolutionary. nintendo has hardy any games with a good storyline or graphics or gameplay. on the xbox360/ps3 : halo3, resistance2, gears of war 2, uncharted 2 the list is endless. none of the wii games can even compare to those. the ps3 and xbox360 actually have good games and not stupid gimmicks like the wii controller. i love consoles and pc, i just don't got any respect for the wii. I hope the wii keeps falling.

OwnageGuy
OwnageGuy

i agree with lightsyde. the games for wii and ds are just too casual to be any fun. I played on my little bros ds for a few days and got bored so quickly even though i had a wide selection of games. when i played the ps3 i didnt get bored of it, not even after a whole holiday and i only played 1 or 2 games on it.

Glade_Gnarr
Glade_Gnarr

Where's the rest of the Nintendo spectrum, we want more variety not just zelda and mario. Give us Kirby, Fzero, Star Fox, Pikmin maybe a new franchise. And btw wtf hapened to Kid Icarus?

Lightsyde
Lightsyde

Used to be a devout fan of Nintendo games. I made sure I got a DS in it's early days, but their casual games forced me to hand it down to my junior brothers, I've been going with the PSP instead. Whether their sales rise or fall is of no concern to me. I just don't trust Nintendo's consoles anymore. They can go into coffee production for all I care.

Lugia_120
Lugia_120

The thing is that Nintendo,in other generations(64,GC,not SNes,because SNES it's the God of videogames)CARED MOREABOUT MAKING GOOD GAMES,AND IN THIS GENERATIONIT JUST CARES ABOUT MONEY.Where is starfox?Fzero?EarthBound?I want the SNES days back...(Dreaming)

HerbalVideogame
HerbalVideogame

Guess who created the gaming model that every other successful company in field follows? Nintendo. Guess who's watched countless competitors come and go, and guess who's still here. Nintendo. Guess who's gonna be around to watch the current wave of competitors fall? You guessed it, Nintendo. If it weren't for Nintendo, you wouldn't be seeing ANY of the games that we have today. So if you're hating Nintendo, you need to open your mind. They have more to offer than anyone else out there. As much as I love my PS3, the DS rules all, and I've yet to have more fun this generation than the great Nintendo games I've played on my Wii.

Fernicum
Fernicum

In dragon quest, monsters would sometimes make a desperate attack when their hp is critically low dealing great damage.

gob__bluth
gob__bluth

The gravy train couldn't last forever!

etai79
etai79

Nintendo "betraying" us is nonsense. Nintendo is a company. Nintendo "not making available the experiences we have come to expect" is cogency through and through.

itsTolkien_time
itsTolkien_time

Since I have been poorly received with my last comment, I will simply restate that I respect the PS3, and that I don't think Ninty is in much trouble at all. Nintendo isn't the one making the shovelware, it's the 3rd party Wii devs. @frogloe: hey, that's fine :P I agree with you. It just filled up a whole screen.

frogloe
frogloe

@itsTolkien_time: :P I had a lot to say. @everybody else: I hope I didn't offend, I wanted to make that a very general post and try to counter all of this Nintendo is betraying us nonsense.

Junior_AIN
Junior_AIN

I hope their earnings drop even more, and that the casuals find their "new best thing". This is good for Nintendo to start struggling a little bit more for customers and eventually bring more and better releases. Releasing crappy games knowing there will always be someone stupid enough to buy them is not what I have in mind. 3 years of Wii and it seems like 6 months game-wise.

etai79
etai79

Let me reiterate: Nintendo has some of the best in-house developments teams and visionary directors in the industry. Their marketing team, however, has been intent on pumping tons of money into "casual" gaming, i.e. pig feed for the swine, that people with seriously developed taste in games are left wanting. Now I'm not saying there AREN'T great games for the Wii, I'm just saying there are significantly fewer games that are truly inspired on the Wii (and no, I don't mean "waggle the Wii-remote to play pretend kind of 'inspired'"). That, and the hardware difference creates a major rift in the breadth of the library that the Wii can maintain. Of course, I wouldn't sell my Wii for anything, given it's utility of letting me play some of my favorite titles without having to dust off cartridges and the few but extremely good titles that make the system worth owning. I would like it, however, if Nintendo stopped dumping all their money into marketing and just gave it to their R&D departments. I want a product, not an attitude. I don't want a way to kill time, I want an experience.

maccoo
maccoo

So if we're lucky Nintendo's domination days are over. Because that's the case, Nintendo will be forced to use that enormous pile of money they got to focus on quality games and not shovelware.

itsTolkien_time
itsTolkien_time

Wow, frogloe. Triple post. :roll: Nintendo isn't failing. The christmas season hasn't even started yet. The reason PS3 is up is because it was freakishly expensive before, and no one bought it. So they buy it now instead. It's not spectacular or rocket science, people. The PS3 has some good games. Ninty still has their momentum, trust me. I am confident it will carry to next gen too, if they pull it off right.

BlacktheHeart
BlacktheHeart

nintendo use to be the king of third party games. now they sell everything worthwhile in house. sure they do make quality zeldas, marios, and metroids, but for some reason this generation they have neglected some of their other great franchises. they better pick up the pace.

frogloe
frogloe

I'm not implying that the 360 and PS3 suck, they deserve an applause aswell, I'm just saying Nintendo isn't dead or betraying us. They just want us to enjoy the gameplay and not enjoy a game based off how mature it is, or how good the graphics are, or how next gen it is. No matter what system it is Nintendo is still being the Nintendo from 20 years ago whether you recognize it or not. :)

frogloe
frogloe

You complain that NSMBW is just a DS game with a Wii box and four players slapped onto it- hey wait a second. Your complaining that one of the most popular game series back in the 80s and 90s that went missing for 10 years and now returns to fans delight isn't good enough. Wasn't it just a few years ago you were complaining that it was absent? Mario galaxy 2 is called milking too. Yes it's not as original as it was but call me crazy, the original could have had more. Such a concept has yet to be explored in depth. You should be happy that they're taking the time to explore even further into the worlds beyond ours and continue to explore a new concept. Metroid Other M appears to have dissapeared from your radar and I don't know why. Finally there are the two Zeldas. When Spirit Tracks was announced only god knows how much flaming Nintendo got. Honestly? Nintendo didn't give you exactly what you wanted and boom here comes the armada.Let's face it people no matter what platform it's on Zelda is Zelda. Then Zelda Wii is just about the only game I haven't seen a lot of complaints on. So to be honest there just isn't a whole lot of reason to complain. It's not going to be what everybody wanted, it's not going to be the next Halo shooter, it's not going to have graphics that make us drop our jaws but was it that way back in the age of the NES and SNES? No and yet we still enjoyed the games.

frogloe
frogloe

I'm still having a little trouble understanding why so many people feel the need to complain and give up on Nintendo. I don't want to offend anyone but come on! For the past twenty years Nintendo has delivered top notch games that have hardly even hit 7.0s and such then for one or two years they have decided to experiment. Yes it seems a little money crazed but it was only one year or so. Now I can understand a little frustration and perhaps some sophisticated and well thought out criticism but it was much more than this. You see some of us decided we were too impatient, not to wait one year of our life to perhaps try other things maybe take a break from Nintendo but to let go off Nintendo entirely with the notion that Nintendo had betrayed you and gone down the crapper. And only a little over a year! What baffles me even more is now Nintendo begins it's return with a good looking bunch of games such as SMG 2, Metroid Other M, NSMBW, and two Zeldas and you complain further. You complain that there is no star fox or F Zero. Yes these games may be absent for another year but their not dead and Nintendo can't release a new game for every franchise they've created every year! Then while Nintendo continues its return you complain that they milk their franchises. Now yes they go overboard I'll admit to that but no matter how much they milk it their games still end up great in the long run!

osiris
osiris

In the end, the Wii is a fun, exotic toy that you play with for a couple months, then realize its pretty bare bones and put it away, only bringing it out occassionally for old time's sake. Now, it sits in a closet unused. Why? Its a cool expiriment into the motion controller but games have been relatively lackluster. They need to ramp up the games and get some good ones out there. And do some seriuos PR on them as well. When was the last time you've seen half the hype of a big or semi-big Xbox/PS3 game for any Wii game?

pataponplayer
pataponplayer

The Wii can't last much longer. The only thing they use to revive it is Mario games that children buy. That's the only audience they have now anyway

Gamesterpheonix
Gamesterpheonix

[This message was deleted at the request of a moderator or administrator]

dvilified
dvilified

Oh well. Just goes to show you how long it took for technology that's been around for many years to become a thing of the past.

ColonelX24
ColonelX24

Hey there's a limit Nintendo you'll eventually run out of an audience. Me? I sold my Wii and bought a 360 and am very happy with it. But that's just me. Do whatever makes you happy.

Rikuide_Furame
Rikuide_Furame

Hardly surprising, it's all well selling your console to a mass market but even mass markets will eventually dry up. Price drops are always good though - I got my PS3 cheap and I plan to do the same for the Wii.

jsnowbordr47
jsnowbordr47

Yeah, I haven't bought a new Wii game for almost 2 years now. I think the last one I bought was a used copy of RE4.lol Though I'm excited about the new Mario games coming out, mainly SMG2. On the otherhand I've just bought 2 360 games last month and have 2 on preorder. Nindendo really needs to get some good third party games, and more importantly, they need to get the hype up for those games.

nintendoboy16
nintendoboy16

C'mon, Nintendo. Bring us Kirby, Pikmin, Star Fox, and F-Zero for our Wii's and I think you're good. You can't just release Metroid, Zelda, and Mario forever.

george999819
george999819

Yeah, the PS3 outsold it 1 time in 3 years.

CVM_123
CVM_123

wii sucks thats why the ps3 outselled it

KittyHeart
KittyHeart

nintendo will get through this with the holidays this is nintendo here, not sony!

Poodger
Poodger

I can imagine that everyone and their mother (literally) must have the Wii by now. Unless people are buying more than one, I too would expect it to start selling less :/