Massive losses for the April-September period worse than predicted; revenue falls 40% to $2.84 billion; predicts first annual loss in 30 years.
When Nintendo announced it had lost ¥25.5 billion ($336 million) in July, it slashed its own profit forecasts for the rest of the year by over 80 percent. Today the Mario factory announced that its performance in the most recent fiscal quarter is failing to even hit those adjusted targets, with net losses amounting to ¥44.7 billion ($589 million) for the quarter, taking net losses for the first half of the firm's financial year to ¥70.2 billion ($926 million).
Yesterday, a report out of Japanese financial daily Nikkei indicated Nintendo would post an ordinary loss of ¥100 billion ($1.3 billion), compared to the firm's forecast of ¥55 billion ($720 million) for the first half of the year. In actuality, the firm reported an ordinary loss of ¥107 billion ($1.41 billion). These losses were blamed on a multitude of factors, including unfavourable exchange rate changes, declines in hardware and software sales, and decreasing margins thanks to price cuts and inventory markdown.
For the April-September reporting period, Nintendo said net revenue came in at ¥215.7 billion ($2.84 billion), down 40.6 percent year-over-year. That steep decline is compounded by the fact that Nintendo's 2010 first-half figures were down 33.7 percent from the same period in 2009.
Nintendo did state that the 3DS price cut sales "have been improving" but that progress had been hampered by a lack of hit titles, with the exception of The Legend of Zelda: Ocarina of Time 3D. During the six months to the end of September, 3.07 million 3DS handhelds were sold along with 8.13 million 3DS games. This compared to hardware and software sales for the DS range, which were 2.58 million and 29 million, respectively.
Wii console sales for the six-month period came in at 3.35 million units, compared to nearly 5 million units from the year-ago period. Some 36.5 million Wii games were sold worldwide between April-September.
As a result, Nintendo has again revised its full-year estimates. It is expecting full-year net sales to be ¥790 billion ($10.4 billion), which is 12 percent lower than its July estimate of ¥900 billion ($11.9 billion). Sales for the previous year were in excess of ¥1 trillion ($13 billion). The firm has also wiped out its prediction of a full-year profit: it now expects to post a net loss of ¥20 billion ($260 million), compared to its previous forecast of a ¥20 billion ($260 million) net profit. Bloomberg notes that this forecast is the first of its kind in 30 years from Nintendo.
UPDATE: This story initially stated two currency conversions incorrectly. ¥25.5 billion is $336 million, not $336 billion, and ¥44.7 billion is $589 million, not $589 billion. We regret the errors.
After december there will be alot more cool games out for now mabye nintindo should just higher the price of the 3ds again
@paulsifer42 : Thank you,I do agree that things are too up in the air right now,we only have about 5 titles confirmed and little-to-any information on those confirmed titles,if you were to throw me in right now without telling me anything else and just showing me the list of titles so far I would probably so no way I would ever get one....but I know that it was only the initial announcement before the hardware was even complete...I save my judgements about the system as a whole until this e32012 when the final system is it's last stage of production and (hopefully) more titles are announced....who knows maybe we be ;)
@ moviequest14 You may be right, I really can't say if they're coming out with a new IP, or if it will break records. As far as Sony coming out with new IP's, I really can't say much, as I don't follow the Playstation, but Xbox does the same. Though, more often then not, the great IP's we see going through an entire trilogy in one generation are a 3rd party who only works on a handful of games, whereas Nintendo seems to be trying to shoulder it all themselves (possibly explaining why they have so few new IP's and why they take so long to come out). I doubt I will buy a Wii-U because of how disappointed I've been in the Wii, but who knows? Maybe Nintendo will have an awesome new IP, as you suggest, and some great 3rd parties will see something in it and make some more great games for it and I will be a proud owner of a Wii-U. "Only time will tell" and all that. :)
@paulsifer42 : Well I must hand some considerable respect/props to you for stating that it is you that doesn't like the wiimote/new ip's not it is like it is fact that both are bad.I HIGHLY believe we will see a new ip come in for either/both 3ds and wii-u (and keep in mind that it technically has only been one gen since Nintendo did release a new ip) but this could also work out (whether they plan it this way or not I know not) to be a brilliant success for Nintendo...Sony CONSTANTLY releases new ip's (many times to almost go into extinction with each generation) so while there is considerable excitement..not nearly as much as when Nintendo does,the more people wait for a new ip the more successful and popular it will become...if Nintendo constantly released new ip's and almost as quickly dispensed of them than we wouldn't be too excited at the announcement of another one..but you can rest assured that (unless Nintendo royally ##### up ) when they release a new ip..it is going to break records.
@ moviequest14 I disagree that the Wii has NO effect on how Nintendo is doing. Im not a hardcore gamer by any stretch, but I really dont like the wiimotes or Nintendos lack of new IPs. Im sure, like all things, that there is no one cause, but a conglomeration.
@paulsifer42 : I agree,my main point I was trying to get across with that statement wasn't necessarily that you said it but most of these comments are as though the wii is the cause of Nintendo's loss,which is really just an excuse for ''hardcore'' gamers that feel Nintendo screwed them over.If the wii was why Nintendo is losing profit right now we would've seen this several years before now...not at the end of the system life.With the wii ruled out this leaves either the 3ds sales or development costs...3ds sales were low but not $900million low (especially since we later saw a 260% sales increase) so the only logical explanation left is that Nintendo is putting more money into research/development than current games production.
@BoabDreeps : wow dude....just wow...there is not much I can say to a comment like that that is logical and won't be modded.
Just because Nintendo isn't making much progress doesn't mean you should brag about it that its not a good console. Lets see, what if the PS3 or the Xbox is having the same problem like this? You would react like some of those Nintendo fans out there who are defending it. If you look at it PS3 and Xbox are like Pros while Nintendo are Newbs but if you know what is the different between Newbs and Noobs you should know what i mean. So just live with it and play/enjoy the game/console and stop complaining about it
I hate to say it but its kinda hard to make fun of Nintendo when both the other companys blatantly copied them. Honestly they did a pretty shotty job of it to. I mean kinectimals I wish I was making that up, thats really the name.. so cheesy. Just waiting for some landfill in New Mexico to absorb all the kinects, move bundles and wii's they can join the atari's heres to hoping the Wii U kicks ass.
@moviequest14 I really must appologise. I'm so sorry that I have an opinion that doesn't meet with yours. You are obviously right. I'm going straight home to dig out my Wii, and by God, am I gonna force myself to like it! Then I'm gonna open up the disc tray on my xbox and relieve myself in to it while the power is on. If I survive that, I'm gonna glue my game discs to the wheels of my car and wheelspin down the road. Then I'm coming back home to play that Wii some more! Hell yeah! What was that game you mentioned..."Twilight Princess"? That sounds AMAZING! I'm off to get a copy now!
@BoabDreeps : All the classic cheesy quips at Nintendo,the attempt at boasting,the fact you go onto an article about a company you obviously don't even like with ''All those girls and kids must have stopped buying games. Their Wii consoles and balance pads shoved in a cupboard with the George Foreman Grill, the coffee machine, volumising hairdrier and rampant rabbit.'' and I am a fanboy? Sure...... Let me try to show you a little logic,the top 10 selling wii games...there are only 4 without debate ''casual'' titles in that list..all the rest are steadily played titles by normal gamers and when you draw back to the million selling games it includes Guitar Hero,donkey Kong Country,Rock Band,Call of Duty and Twilight princess...I suppose the ''girls and kids'' play those right? You'd be surprised by the amount of tweenie girls and 8 year olds I see in the ps3 and 360 isles.But I am through with you as so far all I get back is the same old useless insults and the same old boasting you were saying to begin with. (And fyi probably one of the main reason your friends ''agree'' with you is in fear that you will insult them too for not agreeing with you).
@moviequest14 OK fanboy, we get it. You love Nintendo. My comments are based on my own experience. I'm not alone either. I have friends who feel they got burnt too. We were all dazzled by the 'wavy arm' approach to gaming...for about a week. Then we realised that Microsoft and Sony offered more of what we were looking for. Not just games for kids and women. They can aim that new console at the hardcore gamer all they want. I don't believe that many Xbox or PS players will give it a second look. Especially when MS and Sony also have new consoles on the way. Once bitten, twice shy.
@ moviequest14 I never said the Wii was the only reason for the loss. You and I just went off on a random tangent about if the Wiimotes were gimmicky, which I still hold they are, but you don't have to agree with me, or I with you.
@paulsifer42 : And not to mention that the article doesn't say ''Wii causes $900million loss'' or anything even close to it.Nintendo has been mainly focusing on the wii-u and 3ds development putting money in while getting none out (at the moment) which also leads to less software coming out..as much as it would delight you to think so..the wii isn't the main cause for this loss.Those titles that I listed haven't gotten any reviews that criticize the use of the wiimote at all and again clunky or not as long as it serves a significant purpose (which it still does) it is not a gimmick.
@moviequest14 They may be their biggest sellers, but if that's all they have, they'll continue having below desirable quarters (see above). And while the wiimote may have been an IMPORTANT part of those games, the motion sensor has always (in my experience) been clunky at best. Many of these games require very specific movements, which the wiimote cannot produce. Hence: Gimmick.
@BoabDreeps : The wii has been Nintendo's most successful console to date and significantly impacted the competition and boasts the most successful platformer of all time...oh yes then it must just be a flash in the pan #sarcasm
@paulsifer42 : And you honestly think that if Nintendo released a title called ''racing'' (even with non-mario characters) that they would make any major sales? Pardon my grammar but ''Don't fix somethin that ain't broken!''...all of Nintendo's first party ''milked'' franchises are the ones that sell the systems and sell most on the system (out of the top 10 selling wii games only 1 was 3rd party) Nintendo would be absolutely STUPID to abandon franchises that people obviously still enjoy and buy..1st party titles which have ALWAYS been the most successful on each console and there has to be something out there when Nintendo's supposed-to-be weaker racing title as-a-whole outsells Sony's most successful 1st party title (on ps3) (and don't get me wrong..the uncharted series is absolutely brilliant).So again..why should they change? All of the current ip's are still extremely popular and successful. There are many titles that do make use of it that are well known such as Goldeneye 007,The Metroid Series,soon-to-be skyward sword,Punch Out,Donkey Kong Country,and many other titles .seldom or not there ARE instances where the wiimote does have significant functions that matter,things like the 3d on 3ds are up-for debate about gimmickness,but as long as the wiimote has served a significant purpose it is NOT a gimmick whether you like it nor not.
Let's face it, the Wii was a quick road to profits based on sales to casual gamers. It didn't pack the technology to give it a long life, and it appears they've milked it completely now. Meanwhile, Sony and Microsoft invested more money in consoles that would last longer, and it looks like that was the right move.
What happened to the Wii being the future of gaming? All those girls and kids must have stopped buying games. Their Wii consoles and balance pads shoved in a cupboard with the George Foreman Grill, the coffee machine, volumising hairdrier and rampant rabbit. Ok, probably not the last item. I hear that's a lot more fun than any Nintendo hardware.
The fact the new 3DS advert states "you can turn off 3D" as a major selling point kind of puts it all in a nut-shell. Nintendo's new console can't come soon enough for the company.. but what about their customers? I don't know many folks that are that hyped for the WiiU :? There wasn't enough decent contact for the Wii, and the 3DS has been a major failure.. Kind of sucks but its the truth.
@ moviequest14 It's funny that you should bring up the actual definition of gimmick, because if you look closely, the wiimote is a gimmick. What it was intended for seldom worked out well, except in bowling games. FPS's were never as good for the Wii as for any other system. The Force Unleashed is a great example of a game trying to use the possibilities of the wiimote and it not turning out well. They were clumsy at best. It was cool to see it used, but in actual practice, most games tell you to turn it on its side and use it as a sorry excuse for a remote. Gimmick. Part 2. I've played many Mario Karts, and few have truly noticeable changes. They're based on the other Mario games, which for Nintendo, is no big surprise. It comes back to what all of us who love Nintendo are saying who can see the writing on the wall. They need some new IP's, they need some GOOD 3rd party games.
Perhaps the 3DS will get more fans by next year due to the games rather than the system itself. I mean really, people bashed the 3DS for its lack of this and that and its so-called gimmicks (including myself), but when it comes down to it, people will buy 3DS for its games, not its hardware. For me, the games are mostly Mario-related, but Mario always sells systems.
The Wii was a short term cash in for Nintendo. It was never meant to sustain a life-cycle, or a profit over 6 years. I think Nintendo maintained a high overhead cost based on the profit forecasts of the Wii sales peak. They could support their overhead costs back then in 2008, but not now. The Wii, DS, 3DS aren't selling as well as their expected to. And no dev should ever drop support for a current system and say they are working on the next system.
@palsifer42 : Part 2 (red before as I misspelled your name) : In regards to your comment to comb about sequels...titles like mariokart are RACING titles..and those titles tend to vary only very little over sequels because they are racing titles and don't include story (or seldom do)..and we do see change within the series,mariokart for gamecube had ''double dash'' allowing multiple racers,mariokart 7 brings in more complex design for karts,underwater racing AND ''sky'' racing..the wii-mariokart brought in motorcycles and an entirely new control system...these are all rather significant changes for racing titles.
@paulisifer42 : How then is the wiimote itself a gimmick? First let's start out with the actual and CORRECT term of gimmick ''gimmick:In marketing language, a gimmick is a unique or quirky special feature that makes something "stand out" from its contemporaries. However, the special feature is typically thought to be of little relevance or use. Thus, a gimmick is a special feature for the sake of having a special feature.'' I see Nintendo making many uses of the wiimote,few if none of which are useless..many developers use the wiimote for fps's (which it is mainly designed for) to add quick reflexes and avoid the stiff-knee syndrome. Nintendo released a product (the wii/wiimote) with many uses (thus not a gimmick),and only a couple ''casual'' games that showcase the possibilities beyond that you can blame the low-quality companies for making the controls gimmicky with mass-mini-game saturation and overuse of the remote..with their first party titles the wiimote is often used quite well and few if any review of those titles have any complaints about how it is used.
I remember a few failures that were released under the licence of Nintendo, such as the Super Mario Bros movie and TV show, Captain N, The Wizard, and the Zelda cartoon, That's when they were just stealing the money right out of our hands. And now as Nintendo is slowly dying out (or just suffering temporarily) This comes to my mind: "They may take our lives, but they'll never take our marketability".
@ bigcrusha, You didn't have to explain it again, I understood it the first time. The issue though, is that the Wii STARTED with a gimmick (the controller). This is what I've been trying to say on this thread, PS3 and Xbox are doing gimmicky things to support their main deal, but they are accessories to a product that stands alone. Nintendo is starting their systems off with what look to be rebound products. You really don't see that as an issue? @ Comb5, you're point would be valid if Mario Kart 7 wasn't built on an existing IP that has several games that continue branching from it. I agree with your likening this to FPS franchises (MW, Battlefiled, etc) except that in most of their new installments they change things drastically, Mario has been stagnant, a really enjoyable stagnant, but pretty much stagnant.
@Comb5 : I totally agree,Uncharted has already set up a trilogy in one generation alone. (Including the upcoming gtA V) there have been 15 Grand Theft Autos in the past 13 odd years.Halo has had MANY sequels and has been Ms's only mass-successful first party franchise over the ms system lives.There have been 8 Assassin't Creed over the past 4 years.And many,many others can join that list. Nintendo is only doing what is working,it would be absolutely stupid for them to stop developing on franchises that end up selling systems.
@snxx I'm going to end my part of this debate between you and I on this. What you named were game peripherals, something that Nintendo and Sega both used to draw gamers in. Outside of the "controller" that passed on from console to console, 95% (I'm being liberal with that percentage) of all game peripherals don't survive game generation to generation. Nintendo brought more to the table than peripherals. Many of the modern game design conventions used today are the result of Nintendo. Nintendo may not have invented the platformer, but platformers would not have been what they are today. Nintendo did not invent the action RPG genre, but again this genre would not have been the same. My point isn't that Sega wasn't innovative but history can be subjective. The reason why Nintendo appeared to be conservative during those generations is due to their inherent philosophy...gameplay. It is the same till this day. Nothing is more important than gameplay. That is the innovation Nintendo brings to the industry, more so than any other company.
Awesome... Maybe this will be the BIG wake up call. Gimmicks are not a sound business strategy. Consumers: Fool them once shame on you, fool them twice... Not going to happen. This also goes for the music and the (Sony/MS) motion sensor games.
nintendo could have had a few of my bucks if they would have ever released a good mario party in all this time!!!
@ElevenHandMan : I couldn't care less whether it was directed at me or not...I find it shallow and idiotic of anyone to judge articles simply be the factor of a user's avatar whether it be throwing around the favorite title of fanboy or whatever the case may be.I am not ''offended'' by it,I am irritated that you would be so incredibly prejudiced and biased as to judge others peoples posts only by their avatars...that shows that you are a completely rational and sensible person right? I think not... and what the #### does a ''guilty conscience'' have to do with it?
@moviequest14 Funny how you took offense to that, when I never mentioned your name. Guilty conscience?
@slonekb05 : I don't agree...there will be a lot of hype for this because this is a combo people have been waiting on for a long time.Nintendo titles are held highly for their quality (despite what trollers might say)..with proof of this being gamespot reviews..I can't even remember the last time a Nintendo title got lower than a 7.5...they usually score 8's or higher...so people match the consistent quality of Nintendo titles with the hd graphics of the competition and there is very much a reason for there to be some hype.And Keep in mind that the initial display at e3 was just that...initial.Only a handful of titles had even be announced at that time.Surely you don't expect the finished product 2 years before it is even released...
@egger7577 : If that were true than Sony and MS wouldn't be attempting to reach their zenith in motion gaming.
@SillyMushrooms : lol,that is funny...if you have been paying attention to anything about the wii you should have noticed that many reviewers are saying the exact opposite..many claim that titles like Donkey Kong Country,and the Super Mario Galaxy series are incredibly challenging.Oh yes graphics sell systems..this is why the system with the most powerful graphics was in last place in sales followed by the second most powerful and the least powerful leading them all ?
mario and zelda on xbox and playstation if this continues so it's not entirely a bad thing for us gamers
It's because the fad that was motion control gaming has finally died off and consumers are getting bored with their products. The problem with Nintendo is they don't have much 3rd party development and only about a couple stellar releases per year. This is hardly enough to keep the ship afloat so to speak as Wii sales have plummeted recently.
@slonekb05 All I'm saying is that it can.... Just because HD no longer has shock value, doesn't mean HD Zelda won't have some sort of effect, but yes I do agree with you to an extent, HD is old news. It all depends on where Nintendo takes the concept. Remember, that E3 preview was just a concept demo. If they make a Zelda game with length, scale and quality comparable if not better than that of Ocarina of Time. Add in breathtaking graphics, ancient looking dungeons and mind blowing scenery that rivals games like ps3's Uncharted. Poof! you have the recipe of a million dollar game. Point being, Nintendo has always been the creative mammoth of the big 3 so I wouldn't count them out yet, not until we see what they've managed to accomplish come E3 2012.
@bigcrusha Agreed. For me there is a sick feeling of "hahaha i told you so" to all my friends who didnt think the Wii was a gimmick. Then after that i feel bad for nintendo because if it wasent for them, i probaly would not have got into gaming and have as many fond memories as i do now. Anyways thumbs up crusha:)
@bigcrusha All im saying is HD cant be your big selling point now, thats behind the times. HD games been out for yr's so the shock appeal of putting a game in HD is over , its expected. we all love zelda and mario , but those titles cant be your crutch. From what i saw of the wii-u at E3 was not impressive. i predict bust
You know,I think it would be fun to be a psychologist analyzing these comments on game website. What a fickle bunch. Things are going good for a company,and you've got some who believe it will take over the world in a matter of months and fans of other companies that get all mad because they want to see the first company crash and burn. Then some bad news comes and you get haters and doubters raining down fire on the company like they'll be out of business tomorrow. You get fanboys and haters arguing back and forth over something that is nothing but opinion. Conclusions are jumped to much faster here than in real life. There is a fascinating lack of logic here as well,though some comes up now and again,and is hated by most excessively.As I said,what a fickle bunch. People here need to chill.
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