Nintendo stock nosedives on poor Wii U sales

Shares down more than 15 percent after company announces negative revisions to Wii U and 3DS sales projections.

Nintendo's share value over the past five years.

Nintendo can't catch a break. After announcing dismal Wii U sales and diminished financial projections today, shares of the Tokyo game giant have plunged more than 15 percent. The company is currently trading down more than 17 percent to $14.90.

It may not only be the downwardly revised sales projections for the Wii U and 3DS that has investors spooked. President Satoru Iwata said today said the company is considering orienting itself around a "new business structure" that could involve a greater emphasis on smartphones.

Nintendo today slashed its Wii U sales forecast for the period ending March 31, 2014 to 2.8 million consoles, down from 9 million, representing a decrease of almost 70 percent. 3DS sales projections for the same period fell from 18 million to 13.5 million.

Finally, Nintendo said it now expects to post a loss of ¥25 billion ($240 million) for the year, compared to a previous forecast for a profit of ¥55 billion ($527 million). If Nintendo does end up in the red, it will mark the company's third straight annual loss.

Despite the poor performance, Iwata will not resign as Nintendo's top executive.

Written By

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.

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926 comments
timtolo
timtolo

Time to buy some stocks 

daikkenaurora12
daikkenaurora12

Game Library isnt strong yet, graphics look barely better than Wii, the controller is clunky etc.  


The 3DS is what is saving them right now.  Hope they can turn this around.  But still, its a good time to buy shares.  lol

30hanman
30hanman

I really believe that Nintendo would have much better sales if they marketed the Wii U better (here in Canada, there's not a lot of commercials on them, some stores don't have a Wii U on demo, but do have Xbox 1 and PS4, ...) I feel the most important thing Nintendo should have changed from the get-go is the console's name. Funny how DS/3DS works fine, but Wii/Wii U to me doesn't. I understand why Nintendo went with a similar name (to transition the buzz from Wii to Wii U, since the Wii sold over 100 million consoles!).

This said, I love this console and hope Nintendo doesn't give up on it, they need to market it better, make some adjustments (like more online options available) and keep doing what they do: make great and fun games.

They did take a dive, this said their still not at their lowest stock market wise, and we still don't have their sales results. Here's hoping the best for Nintendo, as I believe their demise would not help gaming (contrarily to what other Sony/Microsoft fanboys think).

AttackOfTheCat
AttackOfTheCat

Still don't see why the Wii U isn't selling and the other two are. Played the PS4, really felt like PS3 2.0, very little has changed. The two of them have worse launch games than the Wii U, the lineup for 2014 has v. few games until winter and they both charge you for online


It seems like consumers actually like supporting businesses that rip them off - season passes, day 1 dlc, online subscriptions, microtransactions, etc..

BradBurns
BradBurns

There were a million different ways to handle the Wii's successor. The worst being the Wii U. I think they should have released an HD Wii two years earlier. Nintendo did a bait and switch with the whole motion sensing thing which confused a lot of casual fans. 

Plus, the name, launch library, and marketing didn't help. I personally love the console, I bought one recently and I love being able to catch up on all the original Wii gems I never played as well exclusives but I don't think I represent the majority.

Shango4
Shango4

The problem is most people only own one console and most people dont want a console that only plays Nintendo games.

Biotasticmeat
Biotasticmeat

Bye bye Nintendo. Hopefully someone picks up the 1st party titles after they die out, it would be a shame to see Zelda and Mario and the likes disappear.

MarioLuigi25
MarioLuigi25

For those of you who are saying that the Wii U is a failure, it hasn't quite failed yet. It just doesn't have a strong gaming library right now. I do agree that they need more 3rd party support though. Basically, it's the same thing that the 3DS went through during it's launch year. But I think it'll start picking up again when the gaming library builds up.


But they should focus on some of their other franchises. As much as I love Mario and Zelda, it's like those are the only 2 franchises that Nintendo pays any mind to now. When was the last time we've seen another Metroid game, Star Fox game, or better yet an F-Zero game? Heck, they didn't even do anything for Metroid's 25th anniversary. I'm not saying that they should stop making Mario and Zelda games altogether, that would be a horrible idea, but they should give their other franchises some time to shine too. Nintendo has tons of 1st party franchises that they could use at their exposal, yet they seem to just shove Mario and Zelda down our throats and just hope for the best. That's not going to work Nintendo. What happened to having games for everybody like you promised? Putting out the same stuff year after year isn't good for you or for business.


Please understand that I'm not saying this to hate on Nintendo. Nintendo is actually my favorite video game company and I love them to death. I'm saying this because I want to see them succeed.

mr_enlightened
mr_enlightened

I lost over 2.7 million dollars because of this company, im glad i just migrated my money to Microsoft

locknuts84
locknuts84

Lol. These dudes are so happy to deliver bad news about Nintendo. Look at the smiles! 

LittleMac19
LittleMac19

Well, they brought it on themselves, they really expected the public to fall for the same crap they pulled with the Wii and failed this time. Now they have a system running on hardware atleast a decade old while developers are moving on from that now, weak third party support and selling poorly to top it all off. when the PS4 and X1 drop in price it's going to look even worse for them.

DAOWAce
DAOWAce

Nintendo's strategy of old isn't working anymore.

Vastly underpowered 'next gen' system; taking a loss on it too for the first time. Poor online support for all their consoles.. Complete ignorance when it comes to dealing with online user communities like Youtube.. Yeah, Nintendo really needs to change; less they end up like SEGA.

StHapns247
StHapns247

If they in America government would give them money. Sadly, they in 3rd world country where royalty protected by plumbers.

blaze_boy30
blaze_boy30

         Well isn't that a shame. I think the cause of this is that it is "underpowered", doesn't have a lot of third party support and a low install base. These three aspects are related. Some third parties don't develop on the Wii U because their building game engines for tech that much stronger than the Wii U (PC,PS4,XBONE). They could make Wii U specific version (remember the PS2 games from the beginning of the current gen?), but perhaps the low install base does not justify the costs. 

        Why is there a low install base? If I am not mistaken, the Wii U is slightly stronger than current gen consoles. What this means is that current gen 360/PS3 games can be ported to the Wii U. But therein lies the rub: why get this system when you have machines that can already play said games? Gaming engines are being developed for stronger machines and the current gen games could be played elsewhere. All that's left for the Wii U to do is rely on exclusives. I don't know many people that solely own a Nintendo console. I get it as a Nintendo device to play its exclusive games. I hope to get a Wii U to play the new Smash Brothers when it's out. But can a device do well with primarily 1st party support with minimal 3rd party support? 

       For the most part, Nintendo takes time releasing its exclusives. There's only one Mario Kart per handheld/console, one Smash Bros per console (soon to be one handheld) and so on. Then there are a slew of other dormant IPs Nintendo own that they will not use because they feel they can't do much with them anymore or some other reason. If they want to make quality exclusives, they'll have to be bolstered by robust third party support. Making yearly sequels probably won't solve their problems  in the long run. It might help get the sales going initially but may lead to series fatigue among the consumers. I mean people are experiencing series fatigue now. Personally, I think there's a certain charm that Nintendo games have that I can't seem to find on other systems. Yearly sequels of Mario, Zelda or whatever, would kill it. Nonetheless, the rate at which they release their exclusive now doesn't seem to be enough to bolster the sales of the Wii U. Furthermore the target audience for these exclusives seems to be shrinking.

      But given these aspects I've mentioned about Nintendo, this may be why their sales are so lousy. The industry is going in a different direction than Nintendo as far as the next-gen gaming engines go. PS4/XBONE games will most likely never come to the Wii U. It almost seems as if the industry itself is phasing Nintendo out. Then again, Nintendo marches to its own beat. Well only time will tell to see how that works for them.

SS4kronos33
SS4kronos33

fire reggie and iwata.then hire a chimpanzee gamer who smokes lots of pot to do the job these jackasses cant.

uchihasilver
uchihasilver

maybe if they stop charging next gen prices for their games i mean come on WTF?! even windwaker HD was £45 - 50 =S its a hd remaster FFS and start supporting Wii U mines been collecting dust for ages now

mariokart64fan
mariokart64fan

pszone its still to early , ps3 had the same damn problem    but if the truth hurts wear it i guess, ,     youll see when its all said and done that , even though the wiiu wont pull wii numbers it wont be a dreamcast   ,         and thats the worst that can happen but it wont ,   because the market has grown since the dc era , and  you really cant tell what a console is going to do til the end look at ps3 ,        



ps3 was a disaster    a even bigger one then the wiiu is  right now because the ps3 took more money from sony then wiiu will from nintendo ,       every company goes through tough times,  sony has nintendo   has ,    the fact that neither of the big 3 made as big of mistake that sega has is proof i dont know what more you need  

pszone
pszone

And someone told me everyone loves Nintendo look at this chart.

the owner should resign.    This proofs that Will U  worst console ever been made by Nintendo.

Vexov
Vexov

Nintendo is too stubborn. They don't have to change much, just a few things that wouldn't effect their games... well... except all the games that don't come to Nintendo cause its a pain to develop for.

AMG
AMG

If this keeps up Iwata will be out of a job, shareholders only have so much patients.

kishen95
kishen95

This actually scares me, Ive been a Sony guy my whole life but I love Nintendo dearly, I really dont want to see them fall like this.

sasami_adachi
sasami_adachi

Improve your SDK and online infrastructure. It helps everyone, including yourself.

Adopt a PC-oriented architecture and put in your personal touches.

megakick
megakick

All 3 new consoles are pretty underpowered but the thing is video gamers don't have many choices either buy now or wait.


Nintendo should have waited and outdone both the XBOX ONE AND PS4 hardware and performance that would have helped them a great deal. IMO the performance gap between PC performance and CONSOLE performance is going to huge and much sooner than the DIFFERENCE between PC vs XBOX 360 and PS3.

El_Zaggy
El_Zaggy

Everyone said that the wii u will fail before it was out and it was such a bad idea. But Nintendo didnt listen. Everyone were telling that the wii u was underpowered, even the developpers/graphic engine makers were making fun about that and Nintendo didnt care. Fanboys kepts their eyes shut, ignoring the reality, prefering the 'imaginary' world they live in with nintendo. In short, Nintendo should have just listen to the gamers and the industry: no gimmick controller and better hardware to get more support from the gamers and 3rd party. Anyway Nintendo just hit a wall here and if they dont do something, they will be in deep s***.

Gamerhomer
Gamerhomer

Wonder if this will the the Xbox One this time next year.

rIVAL_sWORD84
rIVAL_sWORD84

i am hoping for a positive comeback from Nintendo. Wii U is a good console but consumers these days want to play more of shooters and action games which are lesser on WiiU, Apart from activision and ubisoft, others have stopped supporting Wiiu due to lower sales of their games on this platform. Only if wiiU had done proper marketing than third party would have continued their support for WiiU. Lets see what happened in 2014 and 2015 this will decide what will happen of Nintendo.

x_hunter00
x_hunter00

@AttackOfTheCat1) What are you talking about? Season passes, dlc, micro-transactions have nothing to do with the consoles themselves. It's the game developing companies who control that.

2) The type of games that the WiiU is for a much younger audience. Most of it's tent pole games are geared towards kids. Do adults play them? Yes of course they do. There is however nothing in the WiiU catalog that compares to games like The Last of Us that offers a more gritty take of storytelling. Plus the visuals are far more superior on the XBOX and PS consoles.

greenpolyp
greenpolyp

@pszone That title is still held by the Virtual Boy. Though the Wii U still should be discontinued.

---Cipher---
---Cipher---

@GamerhomerAs much as I don't like the X1, why would that be the case? The X1 isn't facing half the challenges the Wii U has.

El_Zaggy
El_Zaggy

@Gamerhomerwhy? xbox one already sold more units than the wii u and is more profitable. Sony has the upper hand on Microsoft, microsoft have the upper hand on Nintendo and Nintendo just have the 3ds to keep them afloat. Sorry but its the truth

devilzzz2014
devilzzz2014

@rIVAL_sWORD84 With parents letting their kids play games they shouldn't be playing Nintendo is being hurt.  Also the fact is the age of the average gamer is getting higher and so they might want to try even harder to cater to these people.  The funny thing is these older gamers are still the same people that buy idiotic smart phones and play simplistic games on those and yet make fun of the Wii U.  These older gamers are also people that will buy virtual reality gear that makes them look like morons when it comes out but make fun of a tablet controller that is just too much for gaming.  Seriously LOL.  Also how many people comment on the Wii U and knock it and they haven't even tried a demo of it in the stores?  I see way too much of this.

and finally ..

I said to my ex-fiancee there is nothing wrong with what Nintendo wants to do and that is encourage healthy gaming in the home to be played with real life family and friends and we should be thankful they are around and as long as they make consoles I will be buying them because of that reason.


Sorry but Nintendo not being internet friendly and not having communities like the Xbox Live community is a bad thing?  Eh I think society needs to take a long hard look at where we are headed with gaming and other stuff and realize Nintendo and other companies are better for us if they hate on the internet and hate on the idiots of Xbox Live ...

SS4kronos33
SS4kronos33

@chev7758@SS4kronos33


you just don't want to admit I am right because youre a sony and microshaft fanboy.well you just go ahead and enjoy your spyware machines.when someone hacks them and its only a matter of time before they do,i hope you enjoy having your identity stolen or have the government keep an eye on you

locknuts84
locknuts84

@greenpolyp @pszone It should only be discontinued if Nintendo is planning to get out of the hardware business altogether. Pulling the rug out from under the Wii U now would shatter consumer confidence in any future products. They have to support it for at least another 3 years.

Vexov
Vexov

@evil_snuggles I think you were snuggled so hard it cut the oxygen to your brain. The PS4 is no where near a High end PC (but thats really a matter of opinion). 

The PS4 and XBone only got the hardware of a decent-Good PC, i read its real price value on hardware would run to $800, thats something decent for a game like BF4. How does it handle BF4?, its got "HALF" the max amount of players that PC allows and graphics are set around 2nd highest(which is significant difference). 

The PS4 and Xbone cannot be upgraded, PC's of course can be upgraded. In 4 years the PS4 and Xbone, which are currently at average owned PC's, will be lower end. Consoles will drag gaming in the mud again, as clearly PC can handle more and could already years before the release of the PS4 and XB1. People who don't have even decent knowledge of PC's WILL NOT UNDERSTAND, they compare games developed on console and which are brought to PC.


Next-gen won't be out for another 8-10years, new systems need to come out every 5 years if they want to stay up to date.



Something console could do is leave an option to upgrade, some place in the system to attach a future device (a 2nd GPU) which would allow in future which would normally be limited(dragging in the mud) by the hardware of these systems to be able to play with higher settings. This would buy some time for the console, then they wouldn't be so bad from the 4th year to X-years.

It gives dev's more power to work with in the future.

Kiaininja
Kiaininja

@devilzzz2014@rIVAL_sWORD84Stop sugar coating Nintendo's failures by making this out into some holy war. Their are still plenty of people that are as much interested in wholesome gaming as their are in trigger raging FPS. That is why games like Little Big Planet, Lego series, Rayman, Puzzle, and Music games still sell well today. The problem is that Nintendo is too pompous to see that their are not the only developers or console that sell family oriented gaming just because it isn't exclusive to them and doesn't have one of their mascot in it.

SphinxDemon
SphinxDemon

While childish, this insult is funny and my kind of style

x_hunter00
x_hunter00

@chev7758@Kiaininja@devilzzz2014@rIVAL_sWORD84Says troll
 (this of course refers to @chev7758)

Kiaininja
Kiaininja

@chev7758@Kiaininja@devilzzz2014@rIVAL_sWORD84 Your the one that is spewing baseless troll babel that isn't based on reality. First of all I haven't bought a FPS since Unreal Tournament 2004, I mostly buy Little Big Planet, Lego series, Adventure, Strategy, Pinball, and Music games. Fact is you can buy almost every of the Wii U's 3rd party wholesome games plus more on any other platforms for less money and not have to buy a Wii U just for a few exclusives. Another fact is that most of the casual and family oriented consumers are not N fanboys like you and aren't obsessed with only playing Mario, Zelda, or Pokemon and they don't need to exclusively buy Nintendo platforms to get their gaming fix. Nintendo needs to wake up and realize that the world isn't flat nor revolve around them and that their are more competitors now in this modern market then in their heyday 90s when smartphones and tablets wasn't as relevant as now. It's just that salty N and fanboys are too closed minded to admit it and are too stubborn to adapt to reality.