Nintendo to post second straight full-year loss - Report

Bloomberg data suggests Mario maker will post loss of ¥18.7 billion yen ($189 million) when it reports full-year earnings tomorrow.

According to data compiled by Bloomberg, Nintendo will announce a loss of ¥18.7 billion yen ($189 million) tomorrow as part of its earnings report for the 12 months ended March 31. The data is based on the average of 15 estimates put together by the publication.

If Nintendo does post negative numbers tomorrow, it will be the second straight full-year loss for the company, following last year's first-ever annual loss.

Citing lower-than-expected Wii U sales, Nintendo in January cut full-year sales predictions for the platform 27 percent to 4 million. Nintendo has admitted communicating the novelty of the system to consumers has been a "challenge" relative to the original Wii.

Not all analysts are happy with the job president Satoru Iwata--who has been the top executive at the company since 2002--is doing running Nintendo.

"Iwata hasn't produced good results in recent years," Ace Securities Co. analyst Hideki Yasuda told Bloomberg. "He can't avoid being criticized."

GameSpot will have full details on Nintendo's full-year earnings when they are announced tomorrow.

Written By

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

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838 comments
blue_kaze21
blue_kaze21

wow - the public prematurely calling nintendo's demise ? i think this has happened before... Oh, it has happened almost every time nintendo released a new console ? 

and just for the record, how exactly did nintendo do all those previous times? 

i for one am glad nintendo dont let this crap get to them. the world would have been robbed of so many great consoles and game experiences.

snxx
snxx

Move along, nothing to see here. Bloombergs was WAY off, predicting a U$189 mil loss when, actually, Nintendo had U$71 mil profit.

SlowMotionKarma
SlowMotionKarma

Proof the Wii hit some kind of unprecedented "casual appeal" target. As a long-time gamer I was excited about the Wii's possibilities. They dropped the ball on the Gamecube and if all their claims about the Wii were true, it would be a real hit with the core audience. It wasn't. The reason it did so well was because of the chance hit they made. Gaming was opening up (slowly) into the "casual" audience with smartphone games and Facebook games and the Wii appeared to be a "real gaming machine" for these newcomers, as well as a cool toy for the kids and family and it helped mommy keep her new year's resolution by buying the balance board and Wii Fit.

But that section of the market isn't looking for things like great games, or versatility. They want something quick and cheap and super easy to play for those 30 minutes to an hour they have "family time."

The screen on the WiiU touts their "potential" to change the way games are played. The majority of those that bought the Wii just see some new complicated game system. The Wii connected because all you had to do to play their games was "shake" and "waggle." This new controller has all the buttons you'd find on a "standard" gamepad, PLUS a touchscreen that promises to ADD MORE to a game. That reads "complicated."

So what Nintendo has now is a loss of interest from those that made the Wii so successful and the remnants of core fans that have been hurt twice before. Add to that a lack of new, "next generation" titles, or heck, just any new titles for a core audience and it results in poor sales. I've owned every major Nintendo console since the NES. The Gamecube and Wii I ended up regretting at the end of their life cycle. The WiiU offers nothing to me other than more promises of "potential" and leaves those promises unfilled by a lackluster catalog, both released and announced.

I want the WiiU to be successful. I want the touch screen and motion controls to be used to their "full potential." At the same time, I refuse to spend my money on promises from a company that has let me down twice already.

LinkLuigi
LinkLuigi

I actually enjoyed the Wii. My main problem is that they didn't do anything with it. A great idea, wasted. They'll have to prove themselves if I'm to buy a Wii U.

Caffiene_free
Caffiene_free

Whaaat?  Why are they losing all that money?  I thought the 3ds was doing amazing now?


Well there's only 1 thing nintendo can do now... Advance wars 3ds :3

darkteddi
darkteddi

Microsoft makes more than game. OS, Windows Phone, computers, etc. Even if there console would be lacking in numbers compare to others. They're numbers would still appear in green because other products.

borelarox
borelarox

Is Bloomberg hiring first graders to do the math now?

sune_Gem
sune_Gem

I used to love Nintendo consoles, but after the Wii I've been really put off by them. They seem to have the idea of making consoles that are noticably weaker than their competitors, are roughly the same price and sell off a cheap gimick that gets old after about the second game you play.

Not to sound like a hater, it's just I liked Nintendo a lot more when they made good consoles that could power good games, games that relied completely on the game and not dancing up and down like a maniac to play.

nathangray
nathangray

I like how this is following the article where Nintendo states that regurgitating past franchises with abandon is somehow making them a success.

cjimrun
cjimrun

I enjoyed the Ocarina update, but I've been waiting for a new Zelda on the system.  Never could I have imagined that Zelda would be a sequel to one of the greatest games in the series.  Plus I love the art style as I expected the next portable entry to be in the Wind Waker style again.  Mario and Luigi looked very creative and I've always been a fan of Mario Party since N64.  Glad to see Nintendo supporting what I consider to be the best game system out there right now.  Donkey Kong and Bravery Default are also guaranteed purchases for me.  The only thing I could ask for at this point would be a Metroid title, but I feel like that would be greedy.

cjimrun
cjimrun

Nintendo Direct was a 3DS event.  I would buy the system for the Link to the Past sequel alone if I didn't already have one and my number one title is Bravery Default which is neither port nor rehash.  As for DK, I never got to play it on WII and I'm happy to get the chance as Donkey Kong Country is one of my all time favorite platform franchises.

Queuing_is_back
Queuing_is_back

2018... Nintendo leaves the console race... better believe it folks! :D

SirCrimson
SirCrimson

I bought a Wii U because I like Nintendo and I have disposable income, but I will admit I'm not thrilled with it. The controller is a cool idea but once again Nintendo has released a console that doesn't improve on the graphical capability of the consoles that came before it, which is a stupid decision. The launch titles are also mediocre. Always have a new 3D Mario, Zelda, Star Fox, or Metroid when you launch your consoles, that should be a no-brainer.

GlaciusXL
GlaciusXL

GO BIG! When you release a new system, launch with Super Mario Bros 4!!!!!! How huge was the N64 launch??!... Well, there were only two games at the US launch, but one of them was a completely new Mario, and that's all they needed. You HAVE to have that one game that people have to have. I thought after failing to do this with Gamecube and Wii, the next time would be different. But not like another NEW SUPER MARIO BROS WII U US THEM. But a NEW game packed with ideas like Mario 3 or World that made you want that system even if you didn't buy anything else for it. That one game justified the system purchase. But that's missing. Get a 2D Metroid going like Retro did with Donkey Kong Country Returns. OR just start making SNES games again! I'm on-board with any of those things. :D

Lamachina
Lamachina

I've been predicting that Nintendo will be out of the hardware business soon. looks like i'm about to be right

deathblow3
deathblow3

@sune_Gem no we are in the same boat. i know the wii was going to be a problem because of the amount of time i play games and i can flail around for 5 hours straight. lol i would look like quagmire (hey you been hitting the gym no no i just discover the wii) guess thats why i have no finished wii games.

deathblow3
deathblow3

@cjimrun jsut buy the wii game it was fun only plyed it in the store though.

carolino
carolino

@Queuing_is_back like that is a good thing. Would you like to pay more 1/3 of money to sony or ms ? Monopoly is never good

deathblow3
deathblow3

@SteelBeowulf  to understand loss you have to understand business. a company projects its profits compared to operating cost say 10 mill to operate then they project 30mill in profits but only get 15 mill in profits that is consider a loss even though they still operate above cost.

xolivierx
xolivierx

@GlaciusXL True. You just HAD to have Mario Bros. 3. And a few years later, Super Mario World was a must. I remember playing Nintendo64 at Toys R Us; there was a demo outside the store previous to the launch. Mario 64 was amazing, and it had somewhat of a story. I didn't dislike the Mario games on the Wii, but I don't remember it being great at all except for the 3d thing. Mario 64 felt more like a quest. And yes, they should have released a ''must have'' kind of game witht he WiiU launch. Failing to do so just proves they know the console sucks.

Queuing_is_back
Queuing_is_back

@Lamachina 

When the hell did you make that prediction?

I said it before anyone on here.

Stop trying to live off my name you leech!

abHS4L88
abHS4L88

@Lamachina 

They're predicting that they'll be losing $189m out of over $10b in disposable income (not counting net worth), that's only around 1% they're losing, totally going to go out of the hardware business soon, especially with an extremely successful handheld console on the market and once the Wii U kicks off, Nintendo will easily earn back all the money they lost and then some. Tell me again about how Sony didn't profit and bled money for over 5 years now yet no one seemed to scream doom towards them.

abHS4L88
abHS4L88

@deathblow3 @sune_Gem 

Out of the 30+ games I played on the Wii, I would say only about 2-3 had me "failing around" actually that's a lie, more like only 2-3 had me using full on motion controls, the rest either used it minimally or used traditional controls. 

flyersfan87
flyersfan87

A monopoly would be if Sony (or Microsoft) was the sole console maker.

deathblow3
deathblow3

@xolivierx @GlaciusXL i have tpo disagree i think they thought to highly of the console and thats why they didn't put any system movers on the console from jump the wii had a gimmick that people attached to and it sold because of it the wii has a gimmick but its not the same and doesnt attract the casual crowd. what should have been available is games like the wii had but using the pad and the wii mote. ah what ever they f*ck the launch lets move on to damage control.

Lamachina
Lamachina

@abHS4L88 @Lamachina "once the Wii U kicks off" LOL. I don't get the fan boy mentality. and such relentless patrolling of the comment section is sad, seriously.

kaneXP101
kaneXP101

@abHS4L88 @Lamachina dude stop being such a nintendo fanboy. the fact is that the wii u did not sell anywhere near what they were expecting. considering how every company releases consoles at a loss it means its not great news for nintendo. yes the 3DS sold well but only after they cut the price on the hardware. but the biggest thing you are failing to realize is that nintendo consoles have there best sells in the beginning of there life. N64, gamecube, and the wii had great sales in the beginning and terrible sales at the end of their life cycles. so if the wii u has bad sales in the beginning its only going to get worse as time moves on.      

klaisn
klaisn

@flyersfan87 I think he was stating that it might be headed that way if Nintendo goes out of business. But it's fun being a smart ass, i know :P

abHS4L88
abHS4L88

@deathblow3 @xolivierx @killa32130 

The next Zelda game is looking to make good use of the 3D but yeah, as far as gameplay goes, 3D really doesn't have that much usefulness. The GamePad on the other hand has a lot of uses, even if it's just used to streamline features, that's still very useful. It's just up to the developers to make use of it. 

abHS4L88
abHS4L88

@deathblow3 @HonorOfGod @killa32130  

You never know, people thought that the PS3 was going to murder the competition before it came out and look what happened. I refuse to make any sort of prediction on who's going to do the best or whatever because we don't know what each company is up to when it comes to their hardware and software. 

deathblow3
deathblow3

@xolivierx @killa32130 lol no the 3ds launch was a failure as well but it pick up a lot of steam. what kills me is i heard that it touting feature (3d) isn't goiong to be utilized as much in future games. seems to me like with the game pad they have wasted money on tech no one will use soon wii u as well.

deathblow3
deathblow3

@HonorOfGod @killa32130 the wii u may or may not fail it will definitely come in last. as far as the company is concerned it will do like the game cube did console failed but the hand held keep them in business. to take them out you would have to have a 3 proned attack software, hardware and hand helds. you may not be able to stop the software.

abHS4L88
abHS4L88

@xolivierx
Exactly, it won't kick off without any great games, but it's already been confirmed that there is a great line up of games on the way, Nintendo just needs to confirm the release dates and judging by their actions, it's quite clear that they're gearing up to release a steady stream of games after E3, most likely starting with The Wonderful 101. 

Also you expect hordes of people to instantly buy the PS4 and next XBox at launch? Most likely they'll see the same amount (if not less) sales than the Wii U did at launch, especially if the launch price is higher than the Wii U's. 

abHS4L88
abHS4L88

@HonorOfGod
Lol child? Yet we've seen these doom and gloom statements made about Nintendo time and time again yet they never come true and for some reason, you guys never learn. Both the 3DS and the PS3 have proven to not count out a console within the first year. Even the Vita which is still struggling to gain strong momentum, I refuse to count it out as it took the PS3 nearly 2 years to gain steam. 

It's funny that you guys think you know exactly how the industry works, yet many of the problems that exist within the industry, you turn a blind eye to and focus on the non problems and love to blame Nintendo for it (even if what they're doing is to help the industry, not wreck it with pointless things). 

All odds were against the Wii, yet it prevailed in the end, dominating sales for 4  years, and no it wasn't because of the "motion control gimmick" no gimmick can sell a product for 4 years straight. 

xolivierx
xolivierx

@killa32130 explain to me how the WiiU is going to kick off with no good games being released anytime soon, and people already expecting to buy the next products from Sony and Microsoft. WiiU's launch was a failure, and having no good game to redeem itself is also a failure. In fact who the frack was directing the WiiU's launch, because they should get fired. Now, I'm not arguing whether or not their portable consoles are selling, because they are. I'm only stating the WiiU is a fiasco(so far) and having no franchise game on a Nintendo system is like having a car with no wheels. I wish Nintendo had gone in a different direction, but they didn't.

anonymousicko
anonymousicko

@HonorOfGod @abHS4L88 "Oooh I am an adult, I am so grown up I can call other people's a child". That so mature of you. And predicting Nintendo is going to do software only just because Nintendo 2 years loss in more than 2 DECADES of profit earnings is very unthoughtful and lack of wisdom,  especially since the loss is declining from the previous year. Tired of old people acting and thinking like a child

killa32130
killa32130

@HonorOfGod Look at the 360 & Ps3 launches in their first year, they both sucked. You have the 360 with RRoD issues & a $500-600 ps3 with no games yet both system are doing alright now. People will buy a console when it's stable and has a good selection of games, its that simple.

It wouldn't surprise me if the Ps4 has a great launch but that doesn't mean Nintendo will leave consoles. I'd be more worried at this point if the online rumors for the Nextbox are true.

HonorOfGod
HonorOfGod

@killa32130 Sadly in this story the underdog dies .. times have changed.

The fact that the PS4 will be out this very year is trouble for them since the WiiU is not selling and the PS4 will have so much to offer that people will jump over to that boat also the next XBOX.

Well .. feel free to hold your breath but I don't recommend it.

killa32130
killa32130

"That article is lame because its the typical "ooh no Nintendo is not doing bad here is why" when in fact all odds are against it. "

What facts? Some analysts or devs predictions? This is only Nintendo's second loss in how many years of business?

Considering it wasn't a massive loss and the 3DS is selling very well currently they'll recover these losses in the future. If Nintendo does a good job at E3 for the Wii-u it should pick up as well.

HonorOfGod
HonorOfGod

@abHS4L88 @HonorOfGod Ah so you are a child.

I don't expect you to understand what us older players are seeing now. We have been around since the NES and some even before that and we have seen the industry decline over the years and were there for the leap from 2D to 3D ext.

I am not so sure if its possible at the moment for your young mind to fully grasp and understand what is happening.

Perhaps if one of us took the time to explain in great detail but.. sadly I feel lazy at the moment to be honest you will need to find someone else child.

That article is lame because its the typical "ooh no Nintendo is not doing bad here is why" when in fact all odds are against it.

abHS4L88
abHS4L88

@HonorOfGod

Only for today, and if you must know, I'm currently working on a birthday card and left my email open, so I can see when I get new replies which I tend to respond to whenever I take a break from drawing. 

Also how was the article lame? Because it refuted Cliff and Pachter's claims? 

HonorOfGod
HonorOfGod

@abHS4L88 Well that was lame. 

I am curious as to why you feel the need to police the comments section.. does Nintendo pay your bills?

LinkLuigi
LinkLuigi

@Lamachina @abHS4L88 Aren't you patrolling this section? I mean, you did get the last word, so clearly you're more into this than he.

kaneXP101
kaneXP101

@abHS4L88 @Lamachina @kaneXP101 yes a fanboy. some one who refuses to see that their favorite console maker is doing any wrong. oh yeah I guess looking up nintendo console sells means I dont know anything about consoles. fanboy

abHS4L88
abHS4L88

@kaneXP101

I'm stating facts, how is that being a fanboy? Who says every system has to follow that trend? The SNES saw its strongest sales towards the end of its life, both the DS and 3DS started off slow but gained a great deal of momentum afterwards. The N64, Gamecube and Wii started off very strong with a great selection of games within the first year and continued for the next 3-4 years, the sales died out when barely any noteworthy games were coming out. 

It wasn't only the price cut that stimulated sales, it was the combination of that along with releasing killer apps. A price cut will only get you so far if there are still no games, and that's what the Wii U is lacking right now. Why would sales get worse when its killer apps are on the way?