Nintendo expects another annual loss, reduces sales expectations

Nintendo has reversed its sales guidance expectations, with the gaming company now expecting an annual fiscal operating loss of 35 billion yen ($336 million) as compared to its previous forecast of a 100 billion yen profit.

The guidance is bad news for the company which will now have its third straight year of operating losses following half a decade of record sales.

"We failed to reach our target for hardware sales during the year-end, when revenues are the highest," says the company. "As a result, the sale of high-margin software fell far short of our projections."

The Wii U was once again the biggest culprit, as the company has reduced projections every months since the console's release in 2012. The company slashed its fiscal year Wii U sales forecast to 2.8 million from 9 million, a devastatingly low estimate. 3DS sales were guided down to 13.5 million units from 18 million units.

Revenues were even more disappointing than the profit, with the expectation down 36 percent from their previous forecast of 850 billion yen. Additionally, the company slashed its dividend. Nintendo's stock fell 17 percent today.

Written by: Andre Yoskowitz @ 17 Jan 2014 21:29

core2kid

Here's a thought, how about you release your consoles and hit games at the same time, not wait over a year to release SSB, Mario Kart, and the games people want!

I have every console made to date except PS4/XB1. I have not sold a single one, I've kept them in my collection. The Wii U may be the first console I sell because it just sucks that much.

18.1.2014 16:28 #1

Mysttic

Nintendo's main issue with Wii-U is that it failed to put together a research and development team for HD gaming years prior to launching Wii-U. When sony had PS2 and MS had X-Box, neither company delayed researching concepts into HD gaming while developing games for that generation. Meanwhile Nintendo just stuck to their comfort zone with the Wii making it not much better than Gamecube in performance. During Wii's development cycle they never bothered to garner together a team to develop in HD, always saying Nintendo can win it out with great first party titles.

The lesson Nintendo is you can't win in the tech industry based on history alone. You either expand, innovate and explore new terrain, staying ahead of time, or you sink. You had it right with the gamepad but failed on performance for the main console.

Next, you got it all wrong with marketing Wii-U. Iwata seriously, what the heck: Wii-U... And then go on to explain it as "We made a system for You" like ... no..... That attempt at treating all your consumers as dumb idiots didn't even sell over at Japan, even with Monster Hunter. Get a clue, that Wii-U was a bad name...

That said too little too late brings you to the next issue. If you wanted to push Wii-U why the heck did you not end production of Wii's? It's been over a year since Wii-U's launch and yet you still insisted on selling another revision of Wii!? Like what are you doing? You seriously want to kill yourselves.

4th issue is a reminder you don't move out of your comfort zone for quite some time. Not only is was Wii not the necessary step into HD that it should have been, but you refuse to get innovative with your innovative devices. Take advantage of the technologies you have as great assets! Example: why make a 3DS into a 2DS and then not create games that that utilize the 3D technology which has proven to be awesome I might add... Resident Evil, Mario they managed to put it to good use. Instead you back track and say nope, let's have a 2DS since 3DS doesn't work for everyone's eyes and evidently parents can't read on how to disable the 3D.

5th issue is not utilizing the gamepad for other means as MS does for Kinect. Not long ago in 2013 it was reported that someone managed to use the Gamepad through Dolphin emulation to play PC apps/games. Brilliant! Nintendo should be embracing it, rather than ignoring it. Full control of PC over the Gamepad, I'm positive a lot of people would want to take advantage of it. The controls on the gamepad are fluid and responsive so it would match the PC perfectly and imagine businesses flicking through power point presentations or other apps with a mean of a finger. Teachers would be able to utilize it as an educational tool (rather than Nintendo make their own Android tab).

Last thing would help Nintendo is let your western board members at both Europe and America actually take charge without needing to ask Nintendo of Japan permission for every little decision. Let them market Wii-U and 3DS in the western countries. They know what we like. They also listen when fans sign petitions on asking for JPN RPGs to be requested for western release. They support us as best as they can with what limited information JPN allows them. Let go of the reigns as Sony of Japan has done with Sony of America. You might actually see it flourish.

I babbled on quite a bit. If Iwata won't step down, it'd be wise to step aside. Nintendo has the technology to be a success should it find ways to adapt and get over its arrogance. Be willing to learn from 3rd party developers on how to better create games in HD. Hire help for Network Infrastructures and keep and eye on your competition rather than ignore what it is they do right.

18.1.2014 21:04 #2

Menion

Ill have to agree with core2kid, its the lacking library of 1st party titles that has prevented me from buying it as of now, I'm sure I will buy it when there is a healthy selection as many other people will. As for HD i couldn't care less as many older gamers such as myself who started out on the 2600 know graphics have nothing to do with a good game, its only eye candy but try getting that through to the younger generation who simply started psx or after.

Nintendo has plenty of innovation, look at the PS and M$ controllers copied directly from the SNES, kinect and Move and the new PS4 camera wouldn't exist if Nintendo didn't put out the wii. I agree they could be doing a better job of finding better implementations for it and if US Nintendo would have some balls and get many of the Japanese RPG's over here sales would be better. yet again its a slump of a system this time Nintendo I'm sure isn't worried too much; according to their annual financial reports the 3DS and Pokemon still are cash cows bring them great profits.

Its the same repeat problem the N64, Gamecube & 3DS suffered from and had Nintendo launched the wii-u with at least 3 1st party titles or even a New Zelda and continued releasing more rather than a stagnant 1st year I'm positive the Wii-U would have had a different outcome.

19.1.2014 02:30 #3

megadunderhead

Let me explain !!!!

I own a wii u i wish i saved the money !!!

Funny it's not for the lack of games but a issue that currently faces all consoles the new broadway processor..

a example of this playstation 4 will face the same updates 4 as the wii u did just to get the console up to date and speed same with the xbox one which is stupid if it is such a good processor then why doesn't it work and run at full speed.

another thing the wii u has a competitor ...???

Can anyone guess!!!

Its not ms or sony...

Surprise it's the ouya!!!

Why pay 10.00 + a piece for classic games when i can get them for free!!!

also why purchase a indie title at 15.00 and 9.99 when you can get the same title on a ouya for 5.00

Also nintendo isn't a high end company there a gaming company that makes games that families play together so is a family going to eat or buy a 300.00 console i think food is important don't you they need to lower there price fix there virtual console service so it goes full screen and shut the heck up and listen to there dang customers.

19.1.2014 21:15 #4

SProdigy

My guess is that the Ouya doesn't have the same licensing structure as Nintendo and therefore why the games are cheaper.

As for emulation, well that's always existed. Still hasn't prevented me from making some classic purchases, either for convenience, updated graphics or both.

20.1.2014 16:55 #5

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