You're welcome.
Ah, btw, no communication about hardware being shown at E3 = no new console being announced at E3 (i.e. brand new consoles; revisions can happen). It also means that the QOL platform first details shouldn't be at E3.
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Nintendo full year financial results [23.2B yen loss, 3.6M Wii U/12M 3DS forecast]
- Thread starter zomgbbqftw
- Start date
You're welcome.
Ah, btw, no communication about hardware being shown at E3 = no new console being announced at E3 (i.e. brand new consoles; revisions can happen). It also means that the QOL platform first details shouldn't be at E3.
Oh... I forgot about yamauchi share buyback. That's a good reason for cash spending.
Hyperactivity
Banned
Wild cards not known about are
Pokken Fighters
NFC
Miyamoto's new IP
Of those that have been half announced
All 3 of those could entirely be the same thing, though I doubt it
Zeyphersan
Banned
I'm sorry, I just skimmed the topic so far: how much reserve cash has Nintendo burned through thus far, and how much do they have left? Is that reported?
deniro.gif
Burning Justice
the superior princess
It is...but even though NSMBU was bundled with the system at one point, I'm positive it sold over 1 million stand-alone copies as well. Hell, I'm pretty sure it sold over 2 million.Holy fuck...
Does this mean that Super Mario 3D world is the only retail game on Wii U to hit over a million units that wasn't ever a pack-in or bundled?
The other games, though...
Aquamarine
Member
Oh joy. Yet another year of worse-than-expected Operating Losses, and yet another year of Iwata promising to make the subsequent year profitable.
And yet again, I will refuse to vote to re-elect Iwata.
And yet again, I will refuse to vote to re-elect Iwata.
SolidSnakex
Member
When is this actually going to start? I think it was in January when Iwata said that starting with MK8 we'd see a steady flow of software. Yet here we're close to its release and it's the only Nintendo developed game on the Wii U that even has an actual date for the rest of the year. Where's Bayonetta 2, X, Yarn Yoshi, SMT x Fire Emblem etc?
It's not surprising that they can't gain any real traction with the Wii U when people don't know what's coming up next. The only game right now with any sort of timeframe other than 2014 is Smash Bros, and some speculate that it won't hit until next year.
Linkstrikesback
Member
They've gone from $10.5 billion in june 2012
http://www.gamesradar.com/nintendo-doomed-not-likely-just-take-look-how-much-money-its-got-bank/
to $3.4 billion now.
NingenJanai
Member
At least they are being realistic.
Nintendo really needs a quiet year (lower investments). That's why I think there will be no new hardware until 2016 (besides QoL).
They didn't "burn through" any of it. They had to use it to buyback shares the Yamauchi family were selling.
vinnygambini
Why are strippers at the U.N. bad when they're great at strip clubs???
You and me both.
However for once, I actually believe the premise of their guidance.
Duxxy3
Member
Going by predictions... Nope, no price cuts.
Zeyphersan
Banned
Nintendo REALLY stumbled with their HD development. It's actually really hard to watch, they have a shit-ton of talent locked up in those development halls, but as a company they were totally unprepared.
Aquamarine
Member
Nintendo's worse than expected Operating Losses were due to inventory write-downs (I'm thinking unsellable Wii Us), very weak net sales, and burgeoning R&D expenses.
in 15-16 hours - there's a countdown on gaf somewhere.
Linkstrikesback
Member
The other ~$6 billion went somewhere, from the "$10.5billion warchest" from june 2012 that was still being quoted by people up to recently, whether you like it or not.
I understand people saying not to panic about the reduction in cash assets due to the buyback, which is a one-off thing, but the R&D expense isn't a one-off. It's a direct result of
a) The increasing cost in terms of time, money and manpower to make Nintendo games. Necessitating more people, more buidlings, more everything. And
b) The failure of the Wii U demanding that they put a huge push behind whatever's next, whether that's QoL, a new console, the 3DS successor or whatever. They need something new to spark sales, and they need it now. Thus the huge expense to get it up and running.
That massive R&D expense isn't some act of god. It's there at that large amount for specific reasons, and the reasons aren't particularly good for Nintendo, even if the outcome of expansion and development end up beneficial.
a) The increasing cost in terms of time, money and manpower to make Nintendo games. Necessitating more people, more buidlings, more everything. And
b) The failure of the Wii U demanding that they put a huge push behind whatever's next, whether that's QoL, a new console, the 3DS successor or whatever. They need something new to spark sales, and they need it now. Thus the huge expense to get it up and running.
That massive R&D expense isn't some act of god. It's there at that large amount for specific reasons, and the reasons aren't particularly good for Nintendo, even if the outcome of expansion and development end up beneficial.
The games that he mentioned just seem to be really early in development and announced too early. Early on they had an issue though.
While it depends on what exactly they are spending the money on, I really don't see the problem with R&D since its something they would have to do either way if we want a better product from them going forward.
metalslimer
Member
Welp looks like the 3DS will struggle to reach 60 million by the time a sucessor is out. On the bright side, Nintendo finally hit a prediction this generation. It only took them 3 years and massive forecast slashes to do it.
There must be something wrong, Nintendo didn't lose 6 billions in two years.
HUELEN10
Member
Aye. I believe that JoeM86, and please Joe correct me if I am wrong or misquoting you in any way, explained it best that due to the costs of manufacture, if they lower the price and it sells a lot, it could be devastating for the company. The smart thing for them to do is grow at a decent pace, not an excellent pace, at the current price and grow the attach rate. I don't remember the post, but he explains it well.
StreetsAhead
Member
The meeting is in another 17 hours, iirc.
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As for replacing Iwata, I think it's likely that a new CEO will still be a 40 year old + Japanese man from within Nintendo or one of its subsidiaries, so I don't imagine that changing the position will lead to anything more than a symbolic change.
To be fair, it is obvious Nintendo cannot provide a major retail release every month of the year for Wii U on their own. Whether Iwata means continuous flow with retail and digital releases is also unknown. If Wii U had third-party support, the release gaps wouldn't be such a big deal.
Hell, with inFamous and MLB out now, Sony's next PS4 game is, what, The Last of Us and then DriveClub? MS' next release is....maybe Sunset Overdrive? They happen to have third-party releases to fill their monthly schedules.
In June 2012, it was at $4bn
It went down from $7bn in March 2011 due to similar things
http://www.nintendo.co.jp/ir/pdf/2012/120426e.pdf
GhostTrick
Banned
Sure, but you better lose money because of expension or share buyback than lose money solely because of hardware sales.
As far as I'm concerned, I think that it's time for Nintendo to work right now on the next batch of hardware, and to get an ecosystem ready. Otherwise, they're just done.
IchigoSharingan
Member
Honestly? I don't.
Psycho_Mantis
Banned
Holy shit, finally Nintendo realises how much of a failure the WiiU is. 3.6 million for an entire year, especially when this is going to be the peak year for the WiiU is damning. However, I think its a realistic expectation. Maybe. Its up YOY in US but down YOY in JP. It basically depends on how much MK and Smash can move.
3DS.....12 million next year when its declined 50% in Japan, and severely in the West as well. What are you smoking Nintendo. I think its safe to say the 3DS won't reach PSP hardware sales at this point. The software sales are pretty amazing though.
Also what? Their war chest is now at $3.4 billion? That can't be right?
HOLY SHIT.
Isn't 3DS cumulative shipment 43.33millions units by the end of March? This must be wrong.
shinra-bansho
Member
There's likely about 300K in the North American retail channel already. And Europe/Other simply does give a crap about the system in general. April-June is typically a very slow quarter so I don't know really see Mario Kart increasing sales by enough to double the Wii U quarterly shipment rate. I don't think 3.6 is really conservative so much as realistic. I wouldn't be surprised really if it didn't hit that target at this point.
3DS certainly isn't hitting it's FY target.
They're still holding a large amount of unimpaired inventory, which when written down will impact their income statement. I'm wondering if they're recognizing those losses as "sales discounts" rather than an impairment charge, which really seems like a gross overstatement of assets.
GhostTrick
Banned
While I agree with the Wii U part... lol, 3DS has a lot of opportunities to reach PSP hardware sales and go even beyond.
They had to spend it all on buyback of shares the Yamauchi family had to sell following the passing of Hiroshi Yamauchi.
It's erroneous. Don't worry.
Zeyphersan
Banned
Jeez, that's insane... Where'd you get the $3.4 billion figure?
Quote
metalslimer
Member
Are they? They seem thoroughly not great or bad.
No it does not. Where exactly is this boost going to come from unless you think the 3DS successor won;t be out for another 5 years.
vinnygambini
Why are strippers at the U.N. bad when they're great at strip clubs???
In addition to the following :
Of that, 173 million US were from deferred tax assets.
Oh, completely agreed. But I just wanted to make the point that the R&D expense is a real one that is a result of their actions and results. If their next hardware messes up, then they'll shortly have another huge R&D expense, and if development gets more expensive they might have to buy more buildings etc. It's not something you can wave away and say won't happen again. It's not good for it to be eating into their cash reserves.
But as you point out, of course it has to be done. Not coming up with something new is just throwing in the towel, at which point it doesn't really matter how much cash you have.