Nintendo losses expected to top $1 billion

Mario maker's first quarterly earnings since 3DS price drop reported to be worse than forecast, stock sheds more than 7% on fears.

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Nintendo's last quarterly financial report was grim, with the company announcing slumping sales, cutting its full-year profit projection and slashing the price of the 3DS globally by about one-third, less than six months after the handheld launched. The Mario maker is set to release its latest quarterly results Thursday, and if a report out of Japan is accurate, the numbers are going to be worse than expected.

Mario is panicked about the state of either his friends or his portfolio.

According to The Nikkei Business Daily (via Reuters), Nintendo is expected to post first-half results showing a loss of ¥100 billion ($1.31 billion), nearly double the ¥55 billion ($722 million) loss the company had forecast for investors. Nintendo posted a loss of ¥25.5 billion ($334 million) for the first quarter of its current fiscal year.

The Nikkei report pegged blame for the supposed shortfalls on foreign exchange losses due to a strong yen. In the wake of the news, Nintendo shares dropped more than 7 percent.

Beyond validating or contradicting the Nikkei report, Nintendo's quarterly earnings should also provide perspective on the effectiveness of the 3DS price cut. The cut was announced along with the company's last quarterly numbers, which showed 710,000 3DS systems sold worldwide between April and June. That brought the total installed base for the glasses-free 3D handheld to 4.32 million. Nintendo has already touted some improvement in 3DS sales, saying in September that the device's sales in the US more than tripled in the weeks following the price cut.

Discussion

352 comments
kiba312
kiba312

man ninty is dropping harder than sony is cause of the 3DS

Badfish_
Badfish_

@nintendoboy16 The only reason they are more successful now is because Nintendo is now focusing on FAMILIES instead of their fans! Of course they aren't going to please me when I have to hold a wii remote and a nunchuck and make sure im within the range of the stupid motion bar just to play a Mario Soccer game. It's too goddamn complicated. When I say go back to the basics, I mean create a console that has controllers, and fun games with the main nintendo icons that have easy and fluent controlls. That would appeal to nintendo fans. Most gamers today are focused on xbox or ps3 or even pc rather than nintendo BECAUSE THEY ARE JUST GAMES WITH CONTROLLERS AND NOT ALL THIS MOTION BULLS***!!! WII SUCKS! WII U WILL SUCK!......and what a dumb name, how about Nintendo revolution? that was an old myth I heard before wii was released and it sounded a whole lot better. Nintendo has let me down again.

fanirama
fanirama

People are tired of kiddie games and kiddie consoles. People are tired of the same old Marios and Zeldas. Take it away because people are tired of it and thus Nintendo is done. They have nothing else.

blaze_boy30
blaze_boy30

@moviequest14 Imo, I think that is the problem. If there wasn't such an abysmal 3DS launch lineup, there would be no price cut. I know I am waiting for better games to come out, which is why I did not get a 3DS at launch.

firstclassgamer
firstclassgamer

@moviequest14 you said that very well without adding a bunch of math!!! "seriously no sarcasm"

IowOparPiykvar
IowOparPiykvar

@callie789456 One more thing... for their income to have "two thirded" on tripled sales, they would have had to reduce the price by about 4/5. So, based on my $300 example, the reduction would be to a price of about $67.

IowOparPiykvar
IowOparPiykvar

@callie789456 If the price dropped by 1/3 and sales tripled... they actually end up in the plus side. Let's use a round $300 for demo, and a sale of 100 units. $300 * 100 = $30,000 vs ($300 - ($300 / 3)) * (100 * 3) = ($300 - $100) * 300 = $200 * 300 = $60,000 End result is actually double the income. The key is it was reduced BY 1/3, not TO 1/3.

callie789456
callie789456

So.. with the price drop, sales tripled... but wasnt it a 1/3 price drop? so INCOME didnt really "triple", income... "two-thirded"?

moviequest14
moviequest14

@yoyou225 : Nintendo is (imo) stuck between a rock and a hard place...if they hurry and rush those titles out before Christmas..we have the same problem the 3ds had at launch.But if they take their time..Nintendo loses out on the peak season.I think right now with a pokemon title,mario3dland,and mariokart being released Nintendo can have a healthy sales holiday...but as for me most of my anticipated games are coming in 2012 (Kid Icarus: Uprising,Monster Hunter series,Rollercoaster Tycoon,POSSIBLY Resident Evil,Luigi's Mansion,etc.).

yoyou225
yoyou225

@Dragdar Rehashing old franchises? If thats what they've been doing, it certainly hasn't been a problem and still won't be for a long time. The 3rd party support I can unfortunately agree with. And I hope that it will cease to be a problem in the future. (As I am a proud owner of a 3DS) But of course, your not a fan of Nintendo are you? Your here to poke fun at a company that you may not see eye to eye with for making money on franchise. News Flash: Nintendo doesn't have to make new franchise every couple years like you guys demand. They can still be creative with their old, more popular franchise. but that would be smart and less risky. But it's something that you can poke at and make fun of, so you stick to it and use it to seem original, and to intern, make Nintendo look old and unoriginal.

yoyou225
yoyou225

@Dragdar Rehashing old franchises? If thats what they've been doing, it certainly hasn't been a problem and still won't be for a long time. The 3rd party support I can unfortunately agree with. And I hope that it will cease to be a problem in the future. (As I am a proud owner of a 3DS) But of course, your not a fan of Nintendo are you? Your here to poke fun at a company that you may not see eye to eye with for making money on franchise. News Flash: Nintendo doesn't have to make new franchise every couple years like you guys demand. They can still be creative with their old, more popular franchise. but that would be smart and less risky. But it's something that you can poke at and make fun of, so you stick to it and use it to seem original, and to intern, make Nintendo look old and unoriginal.

yoyou225
yoyou225

Really, what Nintendo has to focus on right now is games for the 3DS, and there has to be something for everyone if they want to be able to beat out the Vita. They've already got the Christmas advantage AND the price. But what they may not have is games. And thats what they need. GOOD games. Do it Nintendo, and all this will seem like a bad dream and your printing money gifs will resurface and be accurate once again.

Raxyman
Raxyman

@DarkAceZ- They need to help themselves. Instead of hoping re-releases sell well they should invest in new ideas.

Marscaleb
Marscaleb

If I had more than $0.06 in my pocket right now, I would so buy some of Nintendo's stock. With Skyward Sword, a new Mario Kart, and the HD version of the Wii all on the horizon, I'll bet they recover well enough.

moviequest14
moviequest14

@Sanity_Crash : I know that's right...Nintendo attempting to appeal to the minority : Nintendo's least successful console. Nintendo get's burned and decides to appeal to the casual: Most successful console to date. It looks to me like Nintendo was the one that got burned here,when trying to appeal to the hardcore gamer..if they did purchase the gamecube then Nintendo wouldn't have changed to a more appealing audience to begin with. Because so far when Nintendo goes to their own pace: NES,SNES,wii,ds When Nintendo tries to listen to the ''hardcore'' gamer : gamecube,n64,3ds,and HOPEFULLY not wii-u. I just hope Nintendo will realize they shouldn't attempt to please an audience that makes no interest in purchasing from them anyway,when Nintendo didn't care about ''hardcore'' or ''casual'' and just made games they were successful but when they aim at the hardcores they get some of their lesser popular systems to date.

DarkAceZ-
DarkAceZ-

Now if only we could do something to help Nintendo...

Sanity_Crash
Sanity_Crash

I wonder where all these "Nintendo abandoned us to cater to casuals" people were when the Gamecube was out and Nintendo was struggling to stay afloat. Seemed to me the Gamecube was a great system with tons of hardcore titles and plenty of multiplats that matched the PS2 and Xbox versions. I'm just curious is all.

marvel456
marvel456

Nintendo, I think its time to release MAJORA's MASK 3DS!

moviequest14
moviequest14

I find it funny how so many want to attribute this to the wii just to get out their ''hardcore'' venting... Nowhere in this article does it say ''Nintendo Losses Expeced to top $1billion due to wii'' ..as a matter of fact wii isn't even mentioned in this article. And while we are on the subject wii has been Nintendo's most successful console to date and has gotten Nintendo much farther in profit than ''the hardcore systems'' ...this isn't caused by ''the casuals'' as they are the ones that got Nintendo enough money to even be able to afford to lose $900million to begin with. While it may be in part to the 3ds's rocky start (which is already turning back for the better) I can almost guarantee you that 90% of the reason Nintendo is losing so much right now is because they are putting a lot in without getting much out...as I have said,they are putting their money/focus on developing the wii-u (which is based for the hardcore gamer) and the 3ds and games for those systems and is releasing about 1/3'rd of the 1st party titles they normally do.So whether you like it or not you can't legitimately bash Nintendo for this by blaming them for not appealing to the hardcore gamer (bash them for not preparing for a smoother transition between systems? maybe...) because this time to your displeasure that is not the case..just a rough transition.

moviequest14
moviequest14

@Dragdar : FYI Nintendo's ''endlessly rehashed first party ip's'' continue to sell well and better than the competitions most successful 1st party ip's.The only reason they are making a loss is because of the 3ds price-changes and MAINLY the fact that 85-90% of their money is going/has gone into wii-u/3ds research and development instead of releasing games at the normal pace...copy and past this gloat when Nintendo is back to cranking out 1st party titles k?

Dragdar
Dragdar

I guess endlessly rehashing first party IPs and having weak third party support has finally caught u with Nintendo. . Now that the hardware sales are dwindling, it's a ride downhill. .

Eternal_Phoenix
Eternal_Phoenix

no surprise here, the economy has been very weak world wide, then the tsunami, plus nintendo's business strategy for the last few months/years has been fairly bad... the 3DS just didnt delivered as good as the original DS did!

dawnofhero
dawnofhero

@Metal_Gear_LR That's why I didn't buy a Wii... it was certainly targeted toward young families and the grandparents, not the 'hardcore', 'mature' gamer who plays PS3 and 360 type games. But the question is, will the WiiU be able to cater to us older gamers who grew up with Nintendo since the NES days? Or will it be another casual toy for the parents and kiddies to enjoy on the weekends? Ugh. Until Nintendo gets with the program, I'll stick to my NES, SNES, and N64, thank you very much.

McGregor
McGregor

@Metal_Gear_LR, you think Nintendo is the 'little guy'? Honestly, Nintendo will always be a console I own, no matter what other console I buy. Granted I only have a handful of games for the Wii, and I rarely turn it on, but when a new mario/kart/zelda/smash bros. game comes out I'm in line day 1 to pick it up. I'm sure it's mostly nostalgia at this point, none of the new titles really bring anything new to the table, but they are great fun, even if they are mostly "new maps". As long as peach continues to get kidnapped, Hyrule needs Link, and every now and then, they all get together to duke it out or race, then Nintendo will be in business and a report of a loss is not a concern.

Metal_Gear_LR
Metal_Gear_LR

well nintendo...this is what you get...you deserved it, SEE! THIS IS WHAT YOU GET NINTENDO! nah but in all seriousness they should have seen this coming, i mean you turned your back on your audience and decided to pitch the sales to a whole new target audience...family -.- sure made you a quick buck in a short time but in the long run mommy and daddy arent going keep looking at updates for new family fun they have work and other things going on in their lives, so of course you lost sales because you abandoned us, your real gamers...shh its ok nintendo..its ok...*hugs nintendo* I forgive you...millions of other ppl probably dont...but I do. mainly I'm figuring the wii u is going to make a way bigger splash then the wii did. because third parties are jumping in. the wii its self was just a prototype folks they never intended to race against the ps3 or xbox 360. they saw that their system didnt have a chance with the other systems so instead of targeting us you targeted mommy and daddies in their living rooms...now nintendo though is busting out the big guns folks! they adding all sorts of shat to the mix! throwing in HD making a network for the games, and look at that backwards capabilities even with controllers. i'm interested in buying the wii u mostly because i love nintendo but also its like seeing the little guy step into the ring with the big boys

StJimmy15
StJimmy15

@flyinknee Ya, take that man, get thumbs downed for making a valid point!! But seriously, new IPs and some 3DS support really couldn't hurt their numbers...

nin1337
nin1337

hmm lets see... another mario game ... check another mario kart game ... check another zelda game ... check another mario party game ... check I havent figured out the point of Nintendo since N64.

flyinknee91
flyinknee91

So after a decade of getting spoon fed the same crap over and over again, consumers finally got savvy and stopped buying Nintendo's products. Good. NIntendo deserves this.

bigcrusha
bigcrusha

@Daian Well that's your opinion and you are certainly entitled to it, unfortunately for you, many don't share your view. The thing is, Nintendo fans actually LIKE it when Nintendo re-releases first party titles with classic franchises. That's what got them through the GameCube era to begin with. The fail was in 2009 when Wii got little to no first party games, by early 2010 it was too late. The fail was also due to poor marketing strategy. So if you came here to throw a match in a gasoline tank of Nintendo fans, you're definitely well on your way. @ArabrockermanX Unless the Nintendo executive office is full of monkeys in tuxedos who have snowball fights with their own poo all day long, I'm confident the Wii-U will be built with the intention of keeping up with the current generation and the next one both hardware and software wise.

Wolflink001
Wolflink001

You guys had this coming Nintendo...

barnold81
barnold81

My question - how is Nintendo's operating income looking? Saying their profits are looking grim due to foreign exchange losses (non-op) is not indicative of the performance of the business. This is just clouding what all of us are really interested in, how are they doing at what we care about - making games and systems? This foreign currency risk seems to be a recurring theme whenever Nintendo talks about financial performance. So what would happen if there were a weakening yen? Nintendo is pummeling it's competition... due to the weakening yen? What should that have to do with anything?

moviequest14
moviequest14

@StingrayA : But any gamer that even remotely tuned into e3 would know that it is based more for hardcore gamers with titles like Alien,Darksiders,Metro:Last Light,Ninja Gaiden,etc. In order for some to not know the aim of wii-u they would pretty much have to miss every video about the wii-u,not read any article about the wii-u. You don't have to shell out $300 to know what a system is about..I knew exactly what the focus was and the jest of wii-u in the first 10 MINUTES it was announced..anyone else should be able to also and if they intentionally go out of there way to ignore every article and video on it than that is a pretty ''casual gamer'' move in my opinion.

StingrayA
StingrayA

@moviequest14, he is talking about the psychology behind it! WII was clearly a machine that was aimed more at casual audiences whilst having some games for more serious gamers. By calling the new system WII U it suggests to most people just by the name that its going to be a similar system, with similar goals and games e.g. casual audience. The world is not perfect and everyone doesn't have the money or time to drop into picking up a game console or playing it in a store or events to appropriately judge it for themselves. If they didn't like the WII and you call it a WII U, most of the time people are just going to switch off

moviequest14
moviequest14

@cbthedog : Well if this definition of ''true gamers'' you give is true than I highly doubt they would be as shallow and casual as to judge a system by its name..they would/should judge it by its games.

cbthedog
cbthedog

Wii U needs a new name. I can already see 2012 being a dismal year for Nintendo if they don't change it. Why? Because most gamers, and I mean serious ones, not the typical Angry Birds whore who would buy a Party Mix rather than Portal 2 (true story of a visit to target, *shivers*) don't assimilate Wii with serious, up to par, next gen gaming. Nintendo, call it anything else besides Wii U or Crapmachine. Those names would kill it. I think Stream is the best name, for obvious reasons, but we'll just have to see...

jayjay444
jayjay444

I love Nintendo no other console's bring epic game's for the hole family to enjoy like Nintendo dose. me personaly when it comes to gaming i prefair me xbox but when it comes to playing games as a family u cant beat Nintendo games. and games like Zelda and Mario are timeless clasics that for me will never be forgotten and Nintendo will always continue to make money from these types of games and new systems.

LunchSackSal
LunchSackSal

The Wii beats out all other consoles as a top notch netflix playing device.. Just because the Wii controller is small and easy to put on my nightstand... aside from THAT, the Wii is a good doorstop.

jamesseda
jamesseda

I don't believe Nintendo will die anytime soon. They made an incredible comeback with an innovative and at the time laughed at console called The Wii. They may be slow making 1st party games but when they are released, they are great. Ok, so 3rd party games are lacking..they will remedy this with the power of the Wii U, "and might surprise us all over again in the process" the Wii could not support all the newer more powerful games on the market, but they knew that when it was released, but the system still gave Microsoft and Sony a run for their money AND made them and us see games and the market differently, causing them to create their own versions of motion gaming. Also, I'm sorry.. but to the people who complain that they cater to minors? Please grow up, I thought the same way..yes "we" the older 80's generation who grew up on Nintendo and saturday morning cartoons are older now, but that doesnt mean their market is dead...children and teens still love Nintendo and look to them for fun, cute games. Nintendo is needed in an industry that caters to us adults with so many violent and bloody games. I plan on getting a PS Vita, but I must say, after I played Mario Kart 3D and Super Mario 3D on the 3DS at the NY ComicCon, I was sold. I really had fun, and yea..I'll get a 3DS soon . Long Live Nintendo...Makers Of FUN !

Dualmask
Dualmask

Nintendo marches to the beat of their own drum (NES, DS, Wii) = record profits. Nintendo tries to cater to the game industry press and the "hardcores" (N64, Gamecube, 3DS) = record losses. Please, Nintendo. Take the lesson. Before it's too late.

Dark-Exsphere
Dark-Exsphere

I think i got my wii in... 2008... with it i got brawl {2008} release game and Resident Evil 4 Wii Edition {2007}.. Later on i got Metroid Prime Trilogy {2009} and in 2010 i got Other M.... i pretty much got 1 wii game once every year.................. maybe if nintendo made more games they wouldnt be in this mess.... They released Twilight princess on wii during release... but i didnt have the need to buy it because i got the gamecube version which was much better.. the waggle the controller to slash was ridiculous as well as the flipping everything to make link right handed because... most people waggle the controller in their right hand so... link should too... (?) aside from brawl, the other games i played and beat and never played again.... now that the wii's life is pube away from ending, their releasing a zelda game while simultaneously announcing a new zelda game... their so damn slow at releasing proper titles. Ubisoft releasing AC games once a year WITH improvements. i mean one console zelda game ever what... 5 years?... its no wonder their doing this bad now...

Hurvl
Hurvl

"stock sheds more than 7% on fears." That's what is wrong about the stock market and it irritates me that stock markets gets so much attention.

mattcake
mattcake

Sat around for too long rolling around in money that the overpriced and never-reduced wii was making, instead of continuing to innovate. Shame, you'd think they would've invested more wisely. No one likes 3D, despite what the film industry, and now the game industry, has been trying to force onto us for decades. The wii was a must-buy for me, the wii-u looks like a crap DS with a crap console base... pass.

Metalmanijak
Metalmanijak

I dont understand! Nitendo whats going wrong?

chazy035
chazy035

...make more mario games???

kuda001
kuda001

Nintendo's downfall was a combination of outdated hardware and lack of third party support. Thanks, but no thanks.

Ksan989
Ksan989

Nintendo is a great company. I have enjoyed their games for many, many years.........The problem? I grew up. Nintendo is still trying to sell kids games to people who are no longer kids. I hope they make it but if they are going to do well they need to understand, games are not for kids any more and the people who made them rich are now grown ups.

nintendoboy16
nintendoboy16

@mr_gibberish Nintendo would probably take their IP's down with them before letting EA touch them. Besides, Mario and Zelda on PlayStation/XBOX/PC would be just as bad.