New Console On It's Way Soon? Another Sign Pointing To Yes

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Jaysonguy

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#1 Jaysonguy
Member since 2006 • 39454 Posts

Nintendo's profits are down 74% from April to Dec

Now this means that Nintendo has not seen a profit from the Wii alone in over half of it's lifespan. That's not even factoring in other devices that we don't talk about here because it's the Wii forum.

I think this means that Nintendo will have a new console ready soon because they've exhausted every other avenue trying to stop losing money. They tried Wiimotion, they tried tried a radically discounted price of under 100 dollars for the holidays, they've tried special edition Wii's, and all of it has not stopped the bleeding.

With another fire sale over the holidays Nintendo hopes to get back some of it's losses with upcoming software but the problem is that goes against the trend of how Wii software sells. It's a great thing to tell investors about the plans for the company but that's never happened in the past and there's no reason to think it starts now. Nintendo built up it's capital on it's hardware and once they had to start cutting the price of that they could never make it back up in software despite there being more consoles in the world.

Even if Nintendo wanted to wait to release a new console I don't think they have a choice, there's only so much you can lose until you need to move on.

A LINK, THIS IS A LINK FOR YOU TO CLICK IF YOU WANT TO CLICK A LINK BECAUSE IT'S HERE

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WreckEm711

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#2 WreckEm711
Member since 2010 • 7362 Posts

Now this means that Nintendo has not seen a profit from the Wii alone in over half of it's lifespan. That's not even factoring in other devices that we don't talk about here because it's the Wii forum.

Jaysonguy

They made almost 600 million in profits, they are still gaining a lot of money per Wii sold :P And the article even states that the reason behind it is not dramatically lower sales or not making enough money per console sold, it's the Yen appreciation

Actually, as far as software goes, Nintendo is making money back and then some. They account for almost 55% of all software sales in Japan, almost 50% exactly in NA, and over 45% in Europe. One company accounts for about half of the total worldwide software sales, thats amazing by any measuring stick

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Tri-Enforcer

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#3 Tri-Enforcer
Member since 2007 • 1899 Posts

It doesn't mean Nintendo is not making a profit. It's just that they are not making as much as they did the year before. The Wii and DS are still profitable. However, since profits are low expect them to go up considerably with the release of the 3DS. So yeah it's time for a new Nintendo platform--the 3DS--which we already Know about. Moving along.

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Jaysonguy

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#4 Jaysonguy
Member since 2006 • 39454 Posts

[QUOTE="Jaysonguy"]

Now this means that Nintendo has not seen a profit from the Wii alone in over half of it's lifespan. That's not even factoring in other devices that we don't talk about here because it's the Wii forum.

WreckEm711

They made almost 600 million in profits, they are still gaining a lot of money per Wii sold :P And the article even states that the reason behind it is not dramatically lower sales or not making enough money per console sold, it's the Yen appreciation

No, it says slower sales too

I understand that they're still making a profit, just a small one now. The problem is that launching a new console is a considerable strain on a company's finances and in order to be in the best position you have to have the funds.

Nintendo held most of the cards this generation from the start and as the generation has gone on they've lost some of their deck, there's been many attempts to regain what they've lost but each one has fallen short. There's no question now that they'll never get back to that position with the Wii.

There's too many outside factors contributing to the need for a new console and more importantly there's a need to act on this generation of Wii users before they leave. If they're not purchasing software (and most importantly Nintendo software) there's a tenuous hold on them at best.

We don't see healthy attach rates like we did on the Wii in it's first two years even though the numbers were going through the roof then.

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haziqonfire

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#5 haziqonfire
Member since 2005 • 36353 Posts

You're misinterpreting the financial statements.

Nintendo is still seeing a profit from console and handheld sales. They just aren't performing as well as they have in previous years. It's prettycommon to happen to businesses. The attraction of the Wii has gone down and the DS is slowing down as the 3DS is about to launch.

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Jaysonguy

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#6 Jaysonguy
Member since 2006 • 39454 Posts

You're misinterpreting the financial statements.

Nintendo is still seeing a profit from console and handheld sales. They just aren't performing as well as they have in previous years. It's prettycommon to happen to businesses.

Haziqonfire

No, this is the third year that Nintendo isn't seeing any growth, they are the only game company currently to do that. They are the only company to not see growth in any of the last 3 years, another title held only by them.

There's only so much money you can lose before you need new hardware.

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WreckEm711

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#7 WreckEm711
Member since 2010 • 7362 Posts

[QUOTE="WreckEm711"]

[QUOTE="Jaysonguy"]

Now this means that Nintendo has not seen a profit from the Wii alone in over half of it's lifespan. That's not even factoring in other devices that we don't talk about here because it's the Wii forum.

Jaysonguy

They made almost 600 million in profits, they are still gaining a lot of money per Wii sold :P And the article even states that the reason behind it is not dramatically lower sales or not making enough money per console sold, it's the Yen appreciation

No, it says slower sales too

I understand that they're still making a profit, just a small one now. The problem is that launching a new console is a considerable strain on a company's finances and in order to be in the best position you have to have the funds.

Nintendo held most of the cards this generation from the start and as the generation has gone on they've lost some of their deck, there's been many attempts to regain what they've lost but each one has fallen short. There's no question now that they'll never get back to that position with the Wii.

There's too many outside factors contributing to the need for a new console and more importantly there's a need to act on this generation of Wii users before they leave. If they're not purchasing software (and most importantly Nintendo software) there's a tenuous hold on them at best.

We don't see healthy attach rates like we did on the Wii in it's first two years even though the numbers were going through the roof then.

But the sales slowdown isn't so dramatic that it's hurting them. They're making more money than both Microsoft and Sony in console sales, and more than both of them on software combined, theres absolutely no reason for them to come out with a new console when they're still literally printing money

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GreekGameManiac

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#8 GreekGameManiac
Member since 2010 • 6439 Posts

Uh..i think it's common sense that they are going to announce the Wii's succesor this year,and it's gonna be out next year.

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bob_newman

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#10 bob_newman
Member since 2006 • 8133 Posts

No, this is the third year that Nintendo isn't seeing any growth, they are the only game company currently to do that. They are the only company to not see growth in any of the last 3 years, another title held only by them.

There's only so much money you can lose before you need new hardware.

Jaysonguy

They're only not seeing growth because they earned so much the first few years, you can't top what they did those years. Need I remind you that the sales of the Wii are still outpacing those of the PS2, the most successful home console of all time.

But the biggest reason why we're not going to see a console this year is because it would be the dumbest thing Nintendo can do. Launching a new console just months after a new portable is moronic...I'm sure even you could see that.

The Gamecube and GBA releases (both 2001) are a great example of that. Worst-selling Nintendo console? Check. Worst-selling Nintendo portable? Double check.

Nintendo wants to push the 3DS this holiday and they can't do that if there's a new console out there as well. So what's going to happen for the rest of 2011 is Nintendo is just going to coast on the sales of the 3DS (along with a holiday price drop + Zelda for the Wii to get one more holiday sales boost), and then in 2012 they'll shift focus to the next console.

Yes, this means that there will basically be a full year for the Wii where software releases are almost non-existent, but they can more than afford to do that at this point.

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garrett_duffman

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#11 garrett_duffman
Member since 2004 • 10684 Posts
so... by your "logic" 7+8=15, but 7+8-3=0?
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meetroid8

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#12 meetroid8
Member since 2005 • 21152 Posts

[QUOTE="Haziqonfire"]

You're misinterpreting the financial statements.

Nintendo is still seeing a profit from console and handheld sales. They just aren't performing as well as they have in previous years. It's prettycommon to happen to businesses.

Jaysonguy

No, this is the third year that Nintendo isn't seeing any growth, they are the only game company currently to do that. They are the only company to not see growth in any of the last 3 years, another title held only by them.

There's only so much money you can lose before you need new hardware.

They aren't losing money, they are just making less money than they were before. The fact that profits are down doesn't mean that profits are no longer being made. If they were actually losing money it would be reported as a loss. But yes, you are correct, this gen is beginning to draw to a close, though we won't see new consoles until at least next year.

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GojiMaster

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#13 GojiMaster
Member since 2009 • 451 Posts

Wow. Your math is just wrong. Nintendo is still very much in the black, they just had a couple years of sales that would be impossible to surpass. This is very much the trend in recession-based business these days. Economic cyles go up and down along with currency fluctuation. Nintendo is still maintaining healthy sales and profit-- and was the market leader for both handheld and home consoles in 2010. Also, unlike other hardware makers Nintendo has never had to shift around losses to other units so that they could sell at a loss.

Wii has made profit on every console since launch. It would be financial suicide for Nintendo to give up the healthy sales they are enjoying on the Wii right now and launch prematurely into the next gen. This is especially true since 360 and PS3 intend to dig out this generation for a few more years.

The DS lasted 6 years and had a lot of decline in 2010 so Nintendo is correcting this by launching the 3DS.

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haziqonfire

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#14 haziqonfire
Member since 2005 • 36353 Posts

No, this is the third year that Nintendo isn't seeing any growth, they are the only game company currently to do that. They are the only company to not see growth in any of the last 3 years, another title held only by them.

There's only so much money you can lose before you need new hardware.

Jaysonguy

Of course they won't see growth - The unfortunate part of having such a strong start with the Wii is that the later years look worse then they actually are because of how many units they were selling at such an amazing pace. It only looks bad now compared to how ridiculously well they were doing the first couple of years.

They're still making a profit and still doing fairly well, though obvious as technology grows old people lose interest and thus something new comes into place.

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painguy1

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#15 painguy1
Member since 2007 • 8686 Posts

I dont get it...they ar still making a profit

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Sepewrath

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#16 Sepewrath
Member since 2005 • 30179 Posts

They're only not seeing growth because they earned so much the first few years, you can't top what they did those years. Need I remind you that the sales of the Wii are still outpacing those of the PS2, the most successful home console of all time.

But the biggest reason why we're not going to see a console this year is because it would be the dumbest thing Nintendo can do. Launching a new console just months after a new portable is moronic...I'm sure even you could see that.

bob_newman
No fair using common sense :P this is a new low lol.
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AlmightyDerek

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#17 AlmightyDerek
Member since 2002 • 4144 Posts

Oh its a Jasonguy post. They will probably release a new system next year but not because of this.

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Wii4Fun

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#18 Wii4Fun
Member since 2008 • 1472 Posts

Controls: Better, more compact version of the Wiimote and nunchuk, integrated vitality sensor, rumble, better speaker, mic and it should be touch sensitive.

Hardware : 720P (may support 1080), games run at 60 FPS, at least 1GB ram (2 GB if we're lucky ),at least a quad core proccessor, more powerful than PS3, almost as powerful as PS4/720 so we can get third party games( Not gonna be a big jump in power next gen anyways). Backwards compatible with Wii and maybe GameCube ( or GC on VC).

Online: Very much improved over Wii. Free. Put some Nintendo charm into to make it different and unique. Universal friend codes are A-okay with me. Online social gaming will likely be a big focus of the console. Some multi-media features (NetFlix and such).

Price: $299.99 - $349.99.

launch Timing: 1-2 years before PS4/720. Probably Q4 2012.

Media: HD-DVD/Blu-Ray

Yes JG, it's coming. Is your body ready?

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WreckEm711

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#19 WreckEm711
Member since 2010 • 7362 Posts

Controls: Better, more compact version of the Wiimote and nunchuk, integrated vitality sensor, rumble, better speaker, mic and it should be touch sensitive.

Hardware : 720P (may support 1080), games run at 60 FPS, at least 1GB ram (2 GB if we're lucky ),at least a quad core proccessor, more powerful than PS3, almost as powerful as PS4/720 so we can get third party games( Not gonna be a big jump in power next gen anyways). Backwards compatible with Wii and maybe GameCube ( or GC on VC).

Online: Very much improved over Wii. Free. Put some Nintendo charm into to make it different and unique. Universal friend codes are A-okay with me. Online social gaming will likely be a big focus of the console. Some multi-media features (NetFlix and such).

Price: $299.99 - $349.99.

launch Timing: 1-2 years before PS4/720. Probably Q4 2012.

Media: HD-DVD/Blu-Ray

Yes JG, it's coming. Is your body ready?

Wii4Fun

I am completely with you except the more compact version of the Wiimote/Nunchuck, they already dont have enough buttons as it is, a smaller version would be an even bigger button problem :(

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KBFloYd

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#20 KBFloYd
Member since 2009 • 22036 Posts

No, this is the third year that Nintendo isn't seeing any growth, they are the only game company currently to do that. They are the only company to not see growth in any of the last 3 years, another title held only by them.

There's only so much money you can lose before you need new hardware.

Jaysonguy

actually the ps3 saw no growth from in 2010 compared to 2009.. they lost profit% ..

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Wild_Card

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#21 Wild_Card
Member since 2005 • 4034 Posts

i wounder if my predections from a couple years ago is comeing true? that being that all the casuals are no longer buying large amounts of games. Also i *think*ninty lost a good chunk of its core type gamers with all the casual stuff and shovel ware that 3rd partys as well as ninty was focusing on for so long.Now it MIGHT be catching up to them. not bashing the big N but i will not cry when the wii moves over for the next console. Its been my least fav ninty system i think.The casual stuff never did it for me and the forcedwaggel/motion controls in so many gameswas just meh to me.bot that there were not some gems on the system.but thats all just my opinion, flame away friends :P

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super600

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#22 super600  Moderator
Member since 2007 • 32460 Posts

Console sales are excepted to drop Jasonguy once you get literally all the people that are interesting in buying the system to buy the system.The sales may have also dropped because of all the shovelware on the system, but that's expected since the Wii is insanely popular. Your logic is weak Jasonguy.

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wiifan001

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#23 wiifan001
Member since 2007 • 18660 Posts
At E3 Nintendo will announce either a plethora of Wii titles giving it one last phase of lineups for an 2011 / early 2012, or they'll bring out just a couple more newly announced Wii games and then talk about the successor to the Wii. Either way, it will be a large number of 3DS titles or one of the two as statement above. By E3 2012, by then I think they'll definitely announce a Wii successor if not this E3. Just my prediction.
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Arc2012

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#24 Arc2012
Member since 2007 • 1535 Posts

Everyone pretty much has already said what I wanted to say after I read Jasonguy's post. Common sense stuff really. I'm sure all of us saying in unison that he is wrong and telling him why isn't going to change his thinking. He's just one of those people. It's cool though. At least he can liven up the boards. :)

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nini200

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#25 nini200
Member since 2005 • 11484 Posts
Now Jaysonguy, if I buy some stock in Nintendo and they don't come out with a new system soon (which will sell like hotcakes regardless), you owe me buddy. O.O (Staring Eyes are Staring)
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AtelierFan

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#26 AtelierFan
Member since 2006 • 1544 Posts
[QUOTE="BrunoBRS"]i read up to the second paragraph. then i realized it's possibly the most absurd (and wrong) interpretation of math i've ever seen. so i'm out of this topic. if you wanna talk numbers, at least understand what they mean.

I hear ya.
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wooooode

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#27 wooooode
Member since 2002 • 16665 Posts
Nintendo is not loosing money not sure what you are talking about. Your source only says sales are down. Nintendo has always made money off of the each Wii sold unlike its counter parts in Sony and M$. Nintendo may not be making as much but are still way ahead of the others in the gaming market.
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enrique_marrodz

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#28 enrique_marrodz
Member since 2003 • 2107 Posts
TC, thanks for wasting my time due you not understanding a simple financial article and overreacting
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Nuck81

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#29 Nuck81
Member since 2005 • 7976 Posts
As is typical when Jaysonguy makes a trolling thread that he never seems to be moderated for, the second he is proven wrong he never comes back to it. He was knocked out of this thread almost as fast as the 360 won game of the year nonsense....
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elbert_b_23

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#30 elbert_b_23
Member since 2003 • 8247 Posts
[QUOTE="Nuck81"]As is typical when Jaysonguy makes a trolling thread that he never seems to be moderated for, the second he is proven wrong he never comes back to it. He was knocked out of this thread almost as fast as the 360 won game of the year nonsense....

haha thats how i feel or if he proven wrong he ignores that post
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Niff_T

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#31 Niff_T
Member since 2007 • 6052 Posts

I understand that they're still making a profit

Jaysonguy

I think this means that Nintendo will have a new console ready soon because they've exhausted every other avenue trying to stop losing money. They tried Wiimotion, they tried tried a radically discounted price of under 100 dollars for the holidays, they've tried special edition Wii's, and all of it has not stopped the bleeding.

Jaysonguy

lol Oh Jayson, you slay me.

Also lol at the idea of Nintendo not being filthy rich.

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BrunoBRS

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#32 BrunoBRS
Member since 2005 • 74156 Posts

[QUOTE="Jaysonguy"]

I understand that they're still making a profit

Niff_T

I think this means that Nintendo will have a new console ready soon because they've exhausted every other avenue trying to stop losing money. They tried Wiimotion, they tried tried a radically discounted price of under 100 dollars for the holidays, they've tried special edition Wii's, and all of it has not stopped the bleeding.

Jaysonguy

lol Oh Jayson, you slay me.

Also lol at the idea of Nintendo not being filthy rich.

i think you forgot the most important quote. "Nintendo's profits are down 74% from April to Dec (...) Now this means that Nintendo has not seen a profit from the Wii alone in over half of it's lifespan."
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sonic_spark

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#33 sonic_spark
Member since 2003 • 5710 Posts

When you've saturated the market, what else would you expect? The Wii is still profitable, and a new console won't come this year. Is there a new console? Of course. When will it come? 2012 Holiday at the earliest.

That said Nintendo's own games are selling well.

Mario Galaxy 2 - Over 6 million

Kirby's Epic Yarn - Almost 1.5 million (much better than I personally anticipated).

Nintendo keeps making money, and they won't release another console to compete against their own product (the 3DS).

So we don't need threads like this anymore. A new console is coming, just not this year. End of Story.

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aransom

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#34 aransom
Member since 2002 • 7408 Posts

There's only so much money you can lose before you need new hardware.

Jaysonguy

I clicked your link and read, "led the company to report profits of ¥49.6 billion yen". Even though I only went to public school, that says to me they aren't losing money.

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fig56

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#35 fig56
Member since 2005 • 2443 Posts

I smell a GIANT TROLL in disguise. All Jasonguy wants to do is point out the obvious at the same time trying to take a jab at Nintendo. Look, financials aside we all know that Nintendo is making a new console but nobody knows when it's gonna be released. They've probably been developing this said console since the release of the Wii! There's a reason why NEW consoles come out. Because they stop making money after a while. Did you really think that Nintendo wasn't going to make another console? 3DS is going to make so much money for Nintendo that's it's just going to blow everyone else out of the water!