Well Got Dayum: Nintendo to post unexpected loss as Wii successor falters

SionSion Moderator, AHH Content Producer, AHH EditorPosts: 19,772 Regulator
edited January 2013 in The Arcade
(Reuters) - Nintendo Co Ltd, the world's leading gaming company by machines sold, said it will post an operating loss for a second straight year as the sales of its Wii U, successor to the 100-million selling Wii, faltered.

The company caught investors off guard by predicting a loss of $220 million in the year to March 31, reversing a profit forecast for the same amount, putting its new guidance well short of a consensus estimate of 12.1 billion yen ($133.48 million) profit from 19 analysts.

The grim outlook came even as a weaker yen provides a boost for a company that sells almost three quarters of its products outside Japan.

"It was a somewhat negative surprise," said Yasuo Sakuma, portfolio manager at Bayview Asset Management.

Nintendo, which began by making playing cards in the late 19th century, is counting on the Wii U to revive its fortunes as sales of the six year-old Wii slacken.

The latest offering from the creator of Super Mario faces competition from Apple Inc and other makers of mobile phones and tablet PCs that are attracting gamers with cheap or free games.

"The sales of Wii U were smooth at the beginning but since the turn of the year they have been losing momentum," Nintendo President Satoru Iwata told reporters in Osaka after revealing the loss forecast. He blamed the lacklustre performance on a dearth of games titles to woo players back.

"Due to delays in software development, we had to postpone sales of software products we had planned to (release) early this year, which is interrupting our sales," he said.

As Nintendo's hardware business suffers, software sales are also dragging. The company slashed the annual sales forecast of Wii U software by 33 percent to 24 million units and that of 3DS software by 29 percent to 70 million units.

"We have been prepared to see weak sales forecast for Wii U as its sales performances in various regions have been widely reported. But it was negative to see a lower forecast for 3DS software as it is one of the company's main sales drivers," said Sakuma at Bayview Asset Management.



http://uk.reuters.com/article/2013/01/30/us-nintendo-earnings-consoles-idUKBRE90T08T20130130
http://www.guardian.co.uk/technology/2013/jan/30/nintendo-cuts-sales-forecast-wii-u


SMMFH......


Replies

  • KillaChamKillaCham M0D SQUAD™ Posts: 7,764 Regulator
    No one will give a fuck about this system by E3. The hype surrounding the unveiling of the PS4 & 720 will completely obliterate anything Nintendo has in store.
    ex-soldierVulcanRavengenocidecutterKINGECcainvelasquez
  • Karl.Karl. Posts: 4,061 ✭✭✭✭✭
    KillaCham wrote: »
    No one will give a fuck about this system by E3. The hype surrounding the unveiling of the PS4 & 720 will completely obliterate anything Nintendo has in store.

    There is no way the new Xbox will be unveiled at E3. They will have their own event set up.
    focusCashmoneyDuxMikeydaGawd
  • dalyricalbanditdalyricalbandit Co-Owner Of AllhipHop.com, Super Moderator, Administrator, Moderator Posts: 48,164 Regulator
    Turfaholic wrote: »
    Mario coming to PlayStation soon...

    i highly doubt that Nintendo still caked up off them gameboys
    The Recipe
  • focusfocus The #1 Nigga, I Don't No Need Hype. Posts: 4,492 ✭✭✭✭✭
    edited January 2013
    LOL. Misleading article.
    Nintendo Financials Reveal Wii U Sales
    The publisher returns to profitability, but revises forecasts downwards.
    by Keza MacDonald JANUARY 30, 2013

    Nintendo's Q3 financial results show the firm return to profitability after a rocky 2011-12 financial year, but its full-year profit estimates have been revised downwards due to lower-than-expected sales.

    The figures cover the period from April to December last year (the financial year will end on March 31st). Nintendo posted a net income of 14,545 million yen (around $159m) for the nine-month period, after a historic $530 million loss last year. The company revised its net sales estimates for the full year down by 17.3%.

    As of December 2012, the Wii U had sold 3.06 million units worldwide (we made an educated guess at 3 million a couple of weeks ago). That breaks down to around 1.32 million in North America, 900,000 in Europe and 830,000 in Japan. The Wii shifted 3.53 million from April to December. Nintendo has previously stated that it aims to sell 5.5 million Wii Us before the end of March, but it has now revised this target to 4 million.

    Games sales were hoped to reach 24 million, but the new estimate is 16 million (11.69 million have been sold so far.) The best-selling Wii U launch game was Nintendo Land, with 2.33 million sold.

    3DS sales are substantially up - software sales increased by 41% year-on-year, with hardware up by 11%. But Nintendo has still cut the sales target for its handheld from 17.5 million units to a more reasonable 15 million.

    It seems, then, that the Wii U launch has gone well, but not as well as Nintendo had hoped.

    http://www.ign.com/articles/2013/01/30/nintendo-financials-reveal-wii-u-sales

    So, as always, Nintendo's "losses" amount to "oh, we just didnt make AS MUCH money as we'd like to of, but we still MADE MONEY".

    Nintendo is also now the first video game company to return to profitability after only one quarter, when they took the first ACTUAL loss in the companies entire history last year. But because its Nintendo, they must be doomed. LOL.

    And @SION, I know you know better.
    VulcanRaven
  • SionSion Moderator, AHH Content Producer, AHH Editor Posts: 19,772 Regulator
    edited January 2013
    focus wrote: »
    LOL. Misleading article.
    Nintendo Financials Reveal Wii U Sales
    The publisher returns to profitability, but revises forecasts downwards.
    by Keza MacDonald JANUARY 30, 2013

    Nintendo's Q3 financial results show the firm return to profitability after a rocky 2011-12 financial year, but its full-year profit estimates have been revised downwards due to lower-than-expected sales.

    The figures cover the period from April to December last year (the financial year will end on March 31st). Nintendo posted a net income of 14,545 million yen (around $159m) for the nine-month period, after a historic $530 million loss last year. The company revised its net sales estimates for the full year down by 17.3%.

    As of December 2012, the Wii U had sold 3.06 million units worldwide (we made an educated guess at 3 million a couple of weeks ago). That breaks down to around 1.32 million in North America, 900,000 in Europe and 830,000 in Japan. The Wii shifted 3.53 million from April to December. Nintendo has previously stated that it aims to sell 5.5 million Wii Us before the end of March, but it has now revised this target to 4 million.

    Games sales were hoped to reach 24 million, but the new estimate is 16 million (11.69 million have been sold so far.) The best-selling Wii U launch game was Nintendo Land, with 2.33 million sold.

    3DS sales are substantially up - software sales increased by 41% year-on-year, with hardware up by 11%. But Nintendo has still cut the sales target for its handheld from 17.5 million units to a more reasonable 15 million.

    It seems, then, that the Wii U launch has gone well, but not as well as Nintendo had hoped.

    http://www.ign.com/articles/2013/01/30/nintendo-financials-reveal-wii-u-sales

    So, as always, Nintendo's "losses" amount to "oh, we just didnt make AS MUCH money as we'd like to of, but we still MADE MONEY".

    Nintendo is also now the first video game company to return to profitability after only one quarter, when they took the first ACTUAL loss in the companies entire history last year. But because its Nintendo, they must be doomed. LOL.

    And @SION, I know you know better.

    You'd be lying if you said they weren't having a hard time right now. Not just cuz it's "Nintendo". When you gotta sell a new console at a loss & rely on the games that's a huuuge risk & part of the risk is being reflected. I knew the Wii U wasn't going to be the greatest thing ever to happen to them as soon as I seen they were hoarding all that cash (check my older posts in other threads) & also when they announced they would sell it at a loss.

    They are vulnerable right now and it's really going to be interesting to see what MS & Sony comes up with or if they'll follow Nintendo. I'll bet you Q1 & Q2 for this fiscal year won't be much better either :( . They need to dead the 3D technology (it's too costly), put out way more games, utilize the mii-verse w/ the online digital store and concentrate on their cost structure (aka drop the price of the Wii U, which prolly won't happen till December this year or until MS or Sony release date for their consoles).
    VulcanRavengenocidecutter
  • SionSion Moderator, AHH Content Producer, AHH Editor Posts: 19,772 Regulator
    btw long term I'm still very optimistic about Nintendo's prospects.
  • Recaptimus_Prime360Recaptimus_Prime360 Phat Bootyologist Posts: 36,418 ✭✭✭✭✭
    KillaCham wrote: »
    No one will give a fuck about this system by E3. The hype surrounding the unveiling of the PS4 & 720 will completely obliterate anything Nintendo has in store.

    Sadly, I gotta c/s. I haven't even bought the Wii U yet mainly b/c of the Wii. Wasn't tryin to get burned again. Until I start seein some decent games OUTSIDE of the usually Nintendo characters, then I'm not buying it.

    Been a Nintendo fan since day 1. But I must say they have really disappointed me.
  • VulcanRavenVulcanRaven Quote the... MarylandPosts: 13,240 ✭✭✭✭✭
    Not surprising. I know one little fanboy is butt hurt over this.
    genocidecutter
  • Supreme_GentlemanSupreme_Gentleman #RapeCulture Posts: 19,312 ✭✭✭✭✭
    edited February 2013
  • nawledge_godnawledge_god Posts: 2,818 ✭✭✭✭✭
    The Games For The WiiU Are Wack As Fuck ...Fuck They Expect?
  • Wild SelfWild Self Posts: 4,226 ✭✭✭✭✭
    Well, When the likes of 720 and PS4 drop, they better have a ton of good games.
  • focusfocus The #1 Nigga, I Don't No Need Hype. Posts: 4,492 ✭✭✭✭✭
    edited February 2013
    Sion. wrote: »
    focus wrote: »
    LOL. Misleading article.
    Nintendo Financials Reveal Wii U Sales
    The publisher returns to profitability, but revises forecasts downwards.
    by Keza MacDonald JANUARY 30, 2013

    Nintendo's Q3 financial results show the firm return to profitability after a rocky 2011-12 financial year, but its full-year profit estimates have been revised downwards due to lower-than-expected sales.

    The figures cover the period from April to December last year (the financial year will end on March 31st). Nintendo posted a net income of 14,545 million yen (around $159m) for the nine-month period, after a historic $530 million loss last year. The company revised its net sales estimates for the full year down by 17.3%.

    As of December 2012, the Wii U had sold 3.06 million units worldwide (we made an educated guess at 3 million a couple of weeks ago). That breaks down to around 1.32 million in North America, 900,000 in Europe and 830,000 in Japan. The Wii shifted 3.53 million from April to December. Nintendo has previously stated that it aims to sell 5.5 million Wii Us before the end of March, but it has now revised this target to 4 million.

    Games sales were hoped to reach 24 million, but the new estimate is 16 million (11.69 million have been sold so far.) The best-selling Wii U launch game was Nintendo Land, with 2.33 million sold.

    3DS sales are substantially up - software sales increased by 41% year-on-year, with hardware up by 11%. But Nintendo has still cut the sales target for its handheld from 17.5 million units to a more reasonable 15 million.

    It seems, then, that the Wii U launch has gone well, but not as well as Nintendo had hoped.

    http://www.ign.com/articles/2013/01/30/nintendo-financials-reveal-wii-u-sales

    So, as always, Nintendo's "losses" amount to "oh, we just didnt make AS MUCH money as we'd like to of, but we still MADE MONEY".

    Nintendo is also now the first video game company to return to profitability after only one quarter, when they took the first ACTUAL loss in the companies entire history last year. But because its Nintendo, they must be doomed. LOL.

    And @SION, I know you know better.

    You'd be lying if you said they weren't having a hard time right now. Not just cuz it's "Nintendo". When you gotta sell a new console at a loss & rely on the games that's a huuuge risk & part of the risk is being reflected. I knew the Wii U wasn't going to be the greatest thing ever to happen to them as soon as I seen they were hoarding all that cash (check my older posts in other threads) & also when they announced they would sell it at a loss.

    They are vulnerable right now and it's really going to be interesting to see what MS & Sony comes up with or if they'll follow Nintendo. I'll bet you Q1 & Q2 for this fiscal year won't be much better either :( . They need to dead the 3D technology (it's too costly), put out way more games, utilize the mii-verse w/ the online digital store and concentrate on their cost structure (aka drop the price of the Wii U, which prolly won't happen till December this year or until MS or Sony release date for their consoles).

    The problem with what you are saying and everyone who says what you are saying is it isnt based on any kind of real data, facts or numbers. Its all "what ifs" and "will's be" in spite of whats on paper right now. Every console launch is difficult, the PS3 was just a $600, money sucking, DVD player for over 2 years. However, all things considered...as far as console launches go, the Wii U has done well. It had a bigger launch than the 360 and PS3 combined and made $300 million more in revenue for Nintendo in the same time period as the Wii. But yea, the console is young and has its issues...so will the PS4 and X3OX. But the same stuff being said about Nintendo and the Wii U was said with the DS, Wii, and 3DS. Nintendo even found a way to cake off the Gamecube and 64. It would be dumb to drop the price, the goal is to make money, plus the console is profitable after one game sale.

    If this were Sony putting up the exact same numbers it would deemed an amazing success for them, am I lying? But because its Nintendo, they are held to a higher standard and any little hiccup gets blown out of proportion. Everyone (analyst, investors, consumers) are just used to Sony flopping at this point. Can you imagine what Sony's numbers will look like with those off a cliff La' Vita and All-Flops Battle Royale sales? Am I missing something? Did Walkmans come back in style? Ok then, so we can expect even worse from Sony. No matter how "bad" Nintendo is doing, Sony is worse off, so maybe thats why you scratched them out?
  • focusfocus The #1 Nigga, I Don't No Need Hype. Posts: 4,492 ✭✭✭✭✭
    KillaCham wrote: »
    No one will give a fuck about this system by E3. The hype surrounding the unveiling of the PS4 & 720 will completely obliterate anything Nintendo has in store.

    There will definitely be hype, but while Sony and M$ will be tasked with trying to sell a new console with awkward launch games, the The Big N will be out of that phase and will have nothing but AAA games to showcase. And for most gamers (I know not this forum, but most gamers) that's what matters. It will be an interesting E3 all around.
    Wild Self
  • focusfocus The #1 Nigga, I Don't No Need Hype. Posts: 4,492 ✭✭✭✭✭
    mariocostume_zps7b9ba763.jpg

    ..............


    ...and driving karts, brawling, RPGing, playing sports, partying, etc etc etc. The list really does go on.
    MikeydaGawd
  • earth two supermanearth two superman ladies please dont fight. E2S is here all night! Posts: 15,680 Regulator
    The capes and walls of text are coming out in full force for this one.
    MikeydaGawdgenocidecutter
  • focusfocus The #1 Nigga, I Don't No Need Hype. Posts: 4,492 ✭✭✭✭✭
    The capes and walls of text are coming out in full force for this one.

    Translation = I can't negate anything Focus said.
  • ocelotocelot Posts: 9,581 ✭✭✭✭✭
    Well its dead in Europe right now and its neck n neck with the PS3 in Japan...

    We already know about the US... I mean it came out in the holidays and put up average/below numbers and they weren't having supply issues like the PSWii60 when they came out... But I've seen the PSP sell 75mill, PS3 get back to being on top and the 3DS be relevant again... Bottom line is great games sell consoles...

    If PS4/720 have horrible launches and are expensive and Wii U pulls a 3DS with the price cut and gets all the heavy hitters out by holiday season then they'll be aight... If not then Wii U will be gamecube'd because MS/Apple will get their casuals and Sony will get their hardcore... Kids are not playing console like back in the 90s so Nintendo can't rely on them as much...
  • MikeydaGawdMikeydaGawd I am what the people need. Posts: 19,768 ✭✭✭✭✭
  • SionSion Moderator, AHH Content Producer, AHH Editor Posts: 19,772 Regulator
    edited February 2013
    focus wrote: »
    Sion. wrote: »
    focus wrote: »
    LOL. Misleading article.
    Nintendo Financials Reveal Wii U Sales
    The publisher returns to profitability, but revises forecasts downwards.
    by Keza MacDonald JANUARY 30, 2013

    Nintendo's Q3 financial results show the firm return to profitability after a rocky 2011-12 financial year, but its full-year profit estimates have been revised downwards due to lower-than-expected sales.

    The figures cover the period from April to December last year (the financial year will end on March 31st). Nintendo posted a net income of 14,545 million yen (around $159m) for the nine-month period, after a historic $530 million loss last year. The company revised its net sales estimates for the full year down by 17.3%.

    As of December 2012, the Wii U had sold 3.06 million units worldwide (we made an educated guess at 3 million a couple of weeks ago). That breaks down to around 1.32 million in North America, 900,000 in Europe and 830,000 in Japan. The Wii shifted 3.53 million from April to December. Nintendo has previously stated that it aims to sell 5.5 million Wii Us before the end of March, but it has now revised this target to 4 million.

    Games sales were hoped to reach 24 million, but the new estimate is 16 million (11.69 million have been sold so far.) The best-selling Wii U launch game was Nintendo Land, with 2.33 million sold.

    3DS sales are substantially up - software sales increased by 41% year-on-year, with hardware up by 11%. But Nintendo has still cut the sales target for its handheld from 17.5 million units to a more reasonable 15 million.

    It seems, then, that the Wii U launch has gone well, but not as well as Nintendo had hoped.

    http://www.ign.com/articles/2013/01/30/nintendo-financials-reveal-wii-u-sales

    So, as always, Nintendo's "losses" amount to "oh, we just didnt make AS MUCH money as we'd like to of, but we still MADE MONEY".

    Nintendo is also now the first video game company to return to profitability after only one quarter, when they took the first ACTUAL loss in the companies entire history last year. But because its Nintendo, they must be doomed. LOL.

    And @SION, I know you know better.

    You'd be lying if you said they weren't having a hard time right now. Not just cuz it's "Nintendo". When you gotta sell a new console at a loss & rely on the games that's a huuuge risk & part of the risk is being reflected. I knew the Wii U wasn't going to be the greatest thing ever to happen to them as soon as I seen they were hoarding all that cash (check my older posts in other threads) & also when they announced they would sell it at a loss.

    They are vulnerable right now and it's really going to be interesting to see what MS & Sony comes up with or if they'll follow Nintendo. I'll bet you Q1 & Q2 for this fiscal year won't be much better either :( . They need to dead the 3D technology (it's too costly), put out way more games, utilize the mii-verse w/ the online digital store and concentrate on their cost structure (aka drop the price of the Wii U, which prolly won't happen till December this year or until MS or Sony release date for their consoles).

    The problem with what you are saying and everyone who says what you are saying is it isnt based on any kind of real data, facts or numbers. Its all "what ifs" and "will's be" in spite of whats on paper right now. Every console launch is difficult, the PS3 was just a $600, money sucking, DVD player for over 2 years. However, all things considered...as far as console launches go, the Wii U has done well. It had a bigger launch than the 360 and PS3 combined and made $300 million more in revenue for Nintendo in the same time period as the Wii. But yea, the console is young and has its issues...so will the PS4 and X3OX. But the same stuff being said about Nintendo and the Wii U was said with the DS, Wii, and 3DS. Nintendo even found a way to cake off the Gamecube and 64. It would be dumb to drop the price, the goal is to make money, plus the console is profitable after one game sale.


    If this were Sony putting up the exact same numbers it would deemed an amazing success for them, am I lying? But because its Nintendo, they are held to a higher standard and any little hiccup gets blown out of proportion. Everyone (analyst, investors, consumers) are just used to Sony flopping at this point. Can you imagine what Sony's numbers will look like with those off a cliff La' Vita and All-Flops Battle Royale sales? Am I missing something? Did Walkmans come back in style? Ok then, so we can expect even worse from Sony. No matter how "bad" Nintendo is doing, Sony is worse off, so maybe thats why you scratched them out?

    Good post, you should cop shares in Nintendo fam if you're optimistic for them - the price is fair right now. Overall tho I have a different view on Nintendo's short & mid term prospects, although things will get better for them I don't think the Wii U in it's life time will be a flop but I do think it'll be lukewarm as a financial successfor Nintendo (in comparison to older gens) due to the cost of it (it's in the financial statements btw that they're selling it at a loss) and transitioning into a more competitive environment. That's all I'm saying but perhaps only time will tell.....

    I agree that Sony as a whole company is poorly managed but the Playstation division is one of the few profitable subsidiaries of Sony.

  • ShencotheMCShencotheMC KING Posts: 23,196 ✭✭✭✭✭
    Yea, that Wii U has been getting no buzz. Seem like they blew their load too early. Shoulda let that Wii cook for a little while longer. That shit is still getting burn out here
  • KNiGHTSKNiGHTS Mr. Fifth Letter Your ConsciencePosts: 3,349 ✭✭✭✭✭
    All the money Nintendo has saved by staying behind technologically makes a $220 mill lose mean nothing. Put that in perspective: they're the only game company turning a profit off strictly games and hardware.

    Report when they take that MS/Sony loss that's softened by other revenue streams.
  • Karl.Karl. Posts: 4,061 ✭✭✭✭✭
    Sion. wrote: »
    btw long term I'm still very optimistic about Nintendo's prospects.

    Im sure they will be very happy to know that.
  • vagrant-718vagrant-718 Posts: 2,002 ✭✭✭✭✭
    I'm not surprise if ppl are not flocking to the wiiu. Other than the first party games, all the other games already available for ps360, plus all your friends already playing it on ps360 so what's the point of buying 3rd party games on the wiiu?
    ex-soldier
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