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  1. #1
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    Nintendo lowers forecast from 55B profit to 25B loss

    Good thing Nintendo have money in the bank, it was stupid of them to not reinvest their Wii winnings with more dev studios, would have helped them keep up with Sony and MS.

    Big changes for them this year, hope everything comes right again, it would not be the same without them.

    Nintendo Co. (7974) revised its forecast for the fiscal year to a net loss of 25 billion yen ($240 million), cutting its projections for the Wii U console and saying year-end software sales were far below expectations.

    The world’s largest maker of video-game machines had projected a profit of 55 billion yen as it counted on Christmas shoppers to revive sales of its Wii U. The company cut forecasts for Wii U sales to 2.8 million units from 9 million. Shares traded in Germany fell.

    “It is now expected that our sales will fail to meet our previous forecast by a large margin,” President Satoru Iwata said at a press conference today. “We can no longer expect our financial performance to recover in the current fiscal year.”

    VIDEO: Nintendo Should Shut Down Wii U, Analyst Says

    Nintendo’s family-focused content is losing its appeal as titles were delayed, casual gamers migrate to mobile devices, and hardcore players opt for the faster Sony PlayStation 4 and Microsoft Xbox One. Nintendo also refuses to offer games with its lineup of iconic characters such as Mario and Zelda on mobile devices, limiting its ability to profit from surging demand by online players.

    The company cut its forecast for operating income to a 35 billion-yen loss from the prior 100 million-yen profit.

    3DS Forecast

    Nintendo posted a quarterly loss of 8 billion yen in October after cutting the price of the console in the face of new machines from Sony Corp. (675 and Microsoft Corp. Iwata also is trying to lure consumers who prefer playing games on tablet computers and smartphones such as Apple Inc.’s iPhone.

    “The video-game market has moved into smartphones and tablets,” said Mitsushige Akino, chief fund manager at Ichiyoshi Asset Management Co. in Tokyo. “Nintendo needs to expand from their current hardware business model. It’s a structural problem.”

    The Kyoto, Japan-based company cut its forecast for sales of its handheld 3DS player to 13.5 million units from 18 million, and for sales of 3DS games to 66 million units from 80 million. In German trading, Nintendo slumped 7.5 percent to the equivalent of 13,551 yen at 9:03 a.m. in Frankfurt.

    Iwata Pressure

    The revisions increase the pressure on Iwata, who vowed in October to meet a forecast of 100 billion yen in full-year operating profit and 9 million units in Wii U sales. Nintendo has lost about 80 percent of its market value since the introduction of the original Wii drove shares to a record high of 72,100 yen in November 2007, according to data compiled by Bloomberg.

    Its market capitalization is about $20 billion -- less than Samsung Electronics Co. (005930)’s planned capital expenditures.

    “The revision is much worse than expected,” Yusuke Tsunoda, an analyst at Tokai Tokyo Securities Co. in Tokyo, said by phone. “It’s going to be a third consecutive annual operating loss and that raises a serious management issue.”

    Iwata said he’s considering a new business structure, and any announcement about a pay cut would come later this month when the company releases third-quarter earnings. There are no plans to reshuffle management in the near term, he said.

    The company reduced its planned dividend for the fiscal year to 100 yen from 260 yen. Nintendo revised its foreign-exchange assumptions to 100 yen to the dollar from 90 yen, and to 140 yen per euro from 120 yen.

    “We were unable to sufficiently take advantage of the weaker yen,” Iwata said.

    Hardware Sales

    Even with new titles including “Pikmin 3,” Nintendo failed to capitalize on U.S. video-game product sales that surged to their highest in three years in December.

    Hardware sales increased 28 percent to $1.37 billion from a year earlier, Port Washington, New York-based NPD Group Inc. said yesterday in an e-mail. The tally, the highest since spending hit $1.84 billion in December 2010, drove total retail sales for the industry to their fifth straight monthly gain.

    The Wii U features a tablet-like, 6.2-inch touchscreen controller that lets players connect wirelessly to the console and shift the display between the device and a television. The consoles compete in a market where smartphone sales are on track to exceed 1 billion units this year, researcher IDC said Oct. 29.

    The Wii U’s price in the U.S. was cut by $50 to $299.99 on Sept. 20, while the Japanese price remained a suggested 30,000 yen.

    Nintendo introduced the 2DS portable machine, resembling a tablet, in October for $129.99 to lure first-time and casual gamers.

    The global video-game market may reach $111 billion by 2015, researcher Gartner Inc. said Oct. 29. Mobile games are the fastest-growing segment, with revenue set to reach $22 billion by 2015 from $13.2 billion this year, Gartner said.

    http://www.businessweek.com/news/2014-01-17/nintendo-forecasts-net-loss-on-stagnating-sales-of-wii-u-games
    Last edited by Bitbydeath; 01-17-2014 at 09:43.

  2. #2
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    It's really hard to say what the outcome could be.

    One side of me is saying wow Nintendo is screwed console wise and that maybe it's true the "casual" market they had with the Wii has moved onto mobile gaming, as the beginning of last gen I don't think the iPhone had been out and if it had the app/gaming market wasn't so big on smart phones yet.

    The other side says, hey it's Nintendo they've had some tough times before and still made it why not not? Maybe Zelda, Smash Bros., Metroid, etc. finally comes out and gets people's interests again and they bounce back up to alright figures.

    I don't want them to fail, I have a 3DS and Wii U alongside my PS4 and Vita and I like the different experiences I get with Nintendo products. I like my Infamous, Killzone, Uncharted, etc. but playing Pokemon, Zelda and Mario is something no other game series can compare too.

  3. #3
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    Oh dear. Oh dear oh dear oh dear.

    Still *rubs hands* at least when they become a software only company we'll get Zelda and Mario on the PS4

    ​aka Sparc

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    Going handheld only from this point on is looking more and more likely for them.
    Quote Originally Posted by BigDug13
    I want Naughty Dog to explore new game genres, not regurgitate cinematic corridor shooters for another generation.

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  6. #6
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    Found this on another site. Note that 3DS sales are coming in 4.5 million under the original projections too.
    http://www.nintendo.co.jp/ir/pdf/2014/140117e.pdf

  7. #7
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    Quote Originally Posted by Sparc View Post
    Oh dear. Oh dear oh dear oh dear.

    Still *rubs hands* at least when they become a software only company we'll get Zelda and Mario on the PS4
    yeah....starting to think that the Wii U will be Nintendo's Dreamcast.
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  8. #8
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    Nintendo are amazing and this is sad news. I hope the Wii U picks up, I love mine.

    But yeah the 3DS is still selling sooo well and had the strongest lineup of games all year imo.

    Nintendo would never go third party. They made a mistake but the 3DS alone will suport them if the Wii U tanks

  9. #9
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    Quote Originally Posted by DarkVincent07 View Post
    Nintendo would never go third party. They made a mistake but the 3DS alone will suport them if the Wii U tanks
    This is not at all what I'm reading out of "new business models" that Iwata was talking about. When you say they would "never" do it, you're saying you hope that they'll never do it, you're not claiming this as fact right?

  10. #10
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    I hope they don't and doubt they'll go third party, their next handheld will be powerful enough to be a successor to 3DS and most likely Wii U and do as well as Nintendo handhelds always do.
    Quote Originally Posted by BigDug13
    I want Naughty Dog to explore new game genres, not regurgitate cinematic corridor shooters for another generation.

  11. #11
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    http://news.yahoo.com/wii-u-official...123512934.html

    70% slash on the forecast.. wow.

    While, right now, I don't have a single problem with the Wii U. Apparently the masses do.

    They need to get their online structured properly. Get the price down on the Wii U, and get some more great games out.




  12. #12
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    I love my Wii U and can't wait for Tropical Freeze. They need advertise the Wii U MORE.

    3DS: 4613-6960-4293


  13. #13
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    Quote Originally Posted by Christopher View Post
    yeah....starting to think that the Wii U will be Nintendo's Dreamcast.
    I agree. They might have one more console in them to make a dent. If they have 2 failing consoles in a row (like Sega did with the Saturn and Dreamcast), they will likely suffer the same fate as Sega. Unless their handhelds carry them enough to push past it, they will be software only.....or at least out of the console biz.

  14. #14
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    The handhelds will keep them in the console business, even if it is only handhelds. No way for them to give up that portion.




  15. #15
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    Such a shame , I had a lot of fun with my Wii U while I had it . It's just not enough to compete though.

    Hopefully this doesn't damage them to the point of no return, as far as consoles are concerned.

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