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Nintendo full year financial results [23.2B yen loss, 3.6M Wii U/12M 3DS forecast]

JoeM86

Member
Are you sure they will be the ones to pull thru it? I worry that at this point they will be forced out before it gets to that point. Maybe a new player will come in then and push ahead? Of course I dont want Nintendo to stop making consoles/handhelds.

I feel they're more likely to than the rest. Nintendo, then Sony, then Microsoft.

Yes but my point is roughly it doesn't matter what they are spending it on they can't keep spending at this rate or there will be no company to collect on any long term gain. You can't indefinately spend large chunks of cash and say it's a long term investment. Simple as that no more or less.

If they were continually spending at this rate, you'd have a point, but these are one-off things.
 
No it's not. Take a look at what they did last year, take a look at the sales that they obtained from all that happened last year, and say again that magically they can sustain sales for another 3 years straight. Also, have you ever looked at how quickly Nintendo hardware dies after a new release? Once Nintendo releases a successor the software focus will be square on that new system.



Eh to be fair, we didn't knew how 3DS year would look like before early 2013. And even then, we only knew about Pokémon for the holidays.



Lol. The DS sold an extra 7 million years after the 3DS was launched. The 3DS aint no DS as well.

This ain't no PS2 scenario. Nintendo consoles have short cycles.



Yeah, the 3DS is a lot more expensive than DS. May I recall you that 3DS XL is a 200 dollars handheld, in 2014 ?
 
So what are the chances of the Wii U surpassing the 21.74 million lifetime Gamecube sales to avoid being the worst selling major Nintendo home console ever?
 

Some Nobody

Junior Member
Nintendo should go software only for videogames for sure. A Wii wont happen again.

lol. The only thing I get from that chart Nintendo should abandon some of their very old ways of doing business. The Wii was a success in spite of their ways of doing things, not because of them. If they became more like Sony was for the PS4 and accept that not everyone wants to play Mario, they too could get ahead.
 
The new buildings aren't replacing the old buildings...
The cost of non-current assets like buildings are capitalized and then subsequently depreciated over the course of their expected useful life. They do not have an indefinite useful life as far as financial reporting is concerned.
 
Terrible numbers, very depressing. I hope Nintendo can make their next console a success, otherwise their future as a console maker looks bleak.
 
Nothing is impossible, it's just very unlikely.

The NES was great, but Sony ran off with that concept. The Wii came almost 30 years later after a long downward trend of console sales. What if the next Wii comes in 30 years? The trend for traditional Nintendo console sales will be nearing zero then. Nintendo can't keep losing money for years and years.
Very unlikely according to what? Yall been walking around in that UE4 temple of time too much.
 
So what are the chances of the Wii U surpassing the 21.74 million lifetime Gamecube sales to avoid being the worst selling major Nintendo home console ever?

Smash and Mario Kart would have to put fourth herculean type sales. It would take something drastic as well.
 

watershed

Banned
With the industry going the way it's going (massively increasing budgets on titles, anti consumer practices like paywalls and microtransactions), I fear that the industry is going to contract soon, and Nintendo is the most likely one to pull through and turn it around, like they did with the last crash.
In a strange way this isn't the worst prediction ever except for that Nintendo has already lost the modern hardcore gamers of today and those are the people who are most likely to stay "in gaming" through another crash.
 

erawsd

Member
If QoL is a genuine fitness device aimed at the mass market then surely E3 would not be the correct forum to unveil it.

If it has some strong connection to Nintendo characters and some gaming qualities I don't think it'd be too off base.
 
May I recall you that 3DS XL is a 200 dollars handheld, in 2014 ?

Yes it's a dedicated handheld in the year 2014, and will be an even more obsolete piece of technology to the general public by the year 2016.
 

E-phonk

Banned
So what are the chances of the Wii U surpassing the 21.74 million lifetime Gamecube sales to avoid being the worst selling major Nintendo home console ever?
No one in this threads thinks WiiU will beat GC numbers.

The question is: can they make Wii U into a profitable platform, just like the GC was profitable even though it had a small install base.
 

Riposte

Member
When people post that image of Nintendo consoles selling less, are we to assume it's because of the same factors for all of them (i.e., it's all related)?
 

Ironjam

Member
Because... when the successor hit, the console stop selling ? Selling 35 millions in the next 3 years is pretty much doable, especially with a big new revision, a DSi like one, and of course, a 50 dollars price drop.

You are talking what if scenarios. The 3ds wont sell 35 million in the next 3 years. They had the best year last year, they dropped MH4, ACNL, Pokemon XY etc. They came out with the cheap 2ds and even bundles it with pokemon for like 99 bucks and still were down YoY.
This year Japan had a sales decline of around 45% and sales declined a fair bit in the west as well. This year they will sell around 8-9 millon consoles. If they sell that much in 2015 as well then they will be at around 60 million LTD with a successor out. No chance they sell 20 million after that, especially not if the successor is backwards compatible.
 
Yeah, majority of those loses have been from share buybacks and investments (new buildings, R&D). They spent 270 millions ($) in R&D just for Q4. That's quite big.

...Thinking about it, do we have any idea of how much they've invested in R&D during the last 2 years? In FY2014, investments have been massive, but what about FY2013, when the restructuration plan actually started?

April 2008 - March 2009:
- 42.254 billion JPY on R&D ($415.91 million)
- 117.308 billion JPY on advertising
4,130 employees at end of year

April 2009 - March 2010:
- 45.471 billion JPY on R&D ($448.12 million)
- 100.217 billion JPY on advertising
4,425 employees at end of year

April 2010 - March 2011:
- 52.756 billion JPY on R&D ($519.86 million)
- 96.359 billion JPY on advertising
4,712 employees at end of year

April 2011 - March 2012:
- 52.675 billion JPY on R&D ($519.06 million)
- 74.599 billion JPY on advertising
4,928 employees at end of year

April 2012 - March 2013:
- 53.483 billion JPY on R&D ($527.02 million)
- 61.104 billion JPY on advertising
5,080 employees at end of year

April 2013 - March 2014:
- 71.736 billion JPY on R&D ($706.89 million)
- 70.264 billion JPY on advertising
5,222 employees at end of year

April 2014 - March 2015 (projected):
- 57 billion JPY on R&D ($561.68 million)
- 62 billion JPY on advertising
 

Sandfox

Member
Yes but my point is roughly it doesn't matter what they are spending it on they can't keep spending at this rate or there will be no company to collect on any long term gain. You can't indefinately spend large chunks of cash and say it's a long term investment. Simple as that no more or less.

They aren't spending on R&D to the point where they will go broke before they release another device in the next few years.
 

AdanVC

Member
This is very painful to read indeed. We're just weeks away of Mario Kart 8, a game that could literally save Wii U... but that's something not even Nintendo believe anymore with those forecast numbers for 2014. Like, WTF? With this now I'm REALLY starting to get worried about Wii U's future because there's literally NOTHING to release on Wii U after MK8, meaning, we would have to wait another 2 or 3 months until the next worthy game release. That would kill every possible momentum Wii U could get thanks to Mario Kart 8. All the buzz with E3 is exciting but is obvious most of the games announced there are 2015 releases and how the heck Wii U is gonna survive 2014 with ZERO 3rd party support? There would not be CoD or Assasin's Creed anymore god damn it!! Wii U is such a great console it desserves to sell well! I'm going to bed, guys. Very sad :'(
 
And it has burned them both times, so they won't do that again.

It SHOULD have only burned them once. Nintendo jumped into the fire pit with the 3DS, said "Ow that was hot!" barely jumped out in time, then thought "Now wait a second, was it really that hot?" and released the Wii U.

Now, like someone else pointed out, unless we get some release dates, currently their calendar is: Mario Kart 8 this month, and Smash Bros (which has a 3DS release which will sell better) in "Winter". It's painfully astonishing.
 
Pretty much confirms they're going to let it die. Zelda will be the last game.
It could be that, but I don't think this confirms it at all. After their last time expecations were so ridiculously high it's very possible that
1. they recognize that the console simply won't blow up anymore despite the games coming (such as Mario Kart, Smash, Hyrule Warriors etc etc)

or

2. they want to set it low this time and while not expecting the console sales to blow up in a huge way still in reality hope the sales will go better than the announced expectations. Surpassing expectations (even if they're humble) looks generally better than staying behind of expectations.

edit:
Of course, that said, I'm really not expecting much after Zelda.
 
April 2008 - March 2009
- 42.254 billion JPY on R&D ($415.91 million)
- 117.308 billion JPY on advertising
4,130 employees at end of year

April 2009 - March 2010:
- 45.471 billion JPY on R&D ($448.12 million)
- 100.217 billion JPY on advertising
4,425 employees at end of year

April 2010 - March 2011:
- 52.756 billion JPY on R&D ($519.86 million)
- 96.359 billion JPY on advertising
4,712 employees at end of year

April 2011 - March 2012:
- 52.675 billion JPY on R&D ($519.06 million)
- 74.599 billion JPY on advertising
4,928 employees at end of year

April 2012 - March 2013:
- 53.483 billion JPY on R&D ($527.02 million)
- 61.104 billion JPY on advertising
5,080 employees at end of year

April 2013 - March 2014:
- 71.736 billion JPY on R&D ($706.89 million)
- 70.264 billion JPY on Advertising
5,222 employees at end of year

April 2014 - March 2015 (projected):
- 57 billion JPY on R&D ($561.68 million)
- 62 billion JPY on Advertising
They added 1000 employees in 5 years?? That seems like a lot.
 
With the industry going the way it's going (massively increasing budgets on titles, anti consumer practices like paywalls and microtransactions), I fear that the industry is going to contract soon, and Nintendo is the most likely one to pull through and turn it around, like they did with the last crash.

Why exactly would Nintendo be the beneficiary here? Even if there was some big contraction, the CoD gamer isn't going running to Nintendo. If anything, mobile will swallow the rest of the industry whole.
 
You are talking what if scenarios. The 3ds wont sell 35 million in the next 3 years. They had the best year last year, they dropped MH4, ACNL, Pokemon XY etc. They came out with the cheap 2ds and even bundles it with pokemon for like 99 bucks and still were down YoY.
This year Japan had a sales decline of around 45% and sales declined a fair bit in the west as well. This year they will sell around 8-9 millon consoles. If they sell that much in 2015 as well then they will be at around 60 million LTD with a successor out. No chance they sell 20 million after that, especially not if the successor is backwards compatible.



Because, you're not talking what if scenarios ? Because you're basically saying it has now 2 years left (early 2016 for successor), claiming it had its best year last year, so it can't have a better year. Also, 2DS was never sold, at least officialy and in big quantity, for 99 dollars/€, let alone with Pokémon. Also as I said and people should read more carefully all arguments, 2DS wasn't what people wanted. If you release a revision, you better have something that people want to upgrade. I'd argue that 2DS is unappealing for a lot of people because they'd rather have a 3DS. And 3DS is priced too high.

Also, I never said it WILL sell 35 millions units in the next 3 years. I'm answering to the comments that it CAN'T sell that much in the next 3 years. And my point remain because I think that is something possible, with the right moves.
 
Terrible numbers, very depressing. I hope Nintendo can make their next console a success, otherwise their future as a console maker looks bleak.

I agree that their future doesn't seem too bright. I think they'd work better as a developer. I can only imagine how insanely well something like Mario or Pokemon would sell on a Sony product.
 

n0tail

Banned
Harsh numbers. Both 3DS and Wii U deserve more.

No they don't.

3DS, a portable console designed to be played on the go and when traveling, is region locked so you can't buy games for it when you travel, how stupid is that? It also has horrible online capabilities and poor friends system. It deserves selling dramatically less than the DS by all means.

And the Wii U? The only region locked current gen with last gen power. Its biggest appeal is the game pad which can't be bought separate so that revolutionary experience is locked to one person playing, the rest at the party have to use 8 year old Wii motes. Add to the fact that due to Nintendo's poor decision making, it'll again miss out on all majority third party titles such as Evolve, Final Fantasy, Kingdom Hearts, MGS V, you get the point.

Also, their online infrastructure is inferior to any PC game released during the 90:s.

So no, they don't deserve better. In my opinion, they don't deserve half of what they have.
 

Sandfox

Member
No they don't.

3DS, a portable console designed to be played on the go and when traveling, is region locked so you can't buy games for it when you travel, how stupid is that? It also has horrible online capabilities and poor friends system. It deserves selling dramatically less than the DS by all means.

And the Wii U? The only region locked current gen with last gen power. Its biggest appeal is the game pad which can't be bought separate so that revolutionary experience is locked to one person playing, the rest at the party have to use 8 year old Wii motes. Add to the fact that due to Nintendo's poor decision making, it'll again miss out on all majority third party titles such as Evolve, Final Fantasy, Kingdom Hearts, MGS V, you get the point.

Also, their online infrastructure is inferior to any PC game released during the 90:s.

So no, they don't deserve better. In my opinion, they don't deserve half of what they have.
I don't think region locking is as big to the average consumer as you think it is.
 
I agree that their future doesn't seem too bright. I think they'd work better as a developer. I can only imagine how insanely well something like Mario or Pokemon would sell on a Sony product.

I have the unfortunate feeling that if Nintendo bows out of the console business, they bow out of gaming altogether. Seems like a pride thing. I'd love to be wrong though.
 

AniHawk

Member
This is very painful to read indeed. We're just weeks away of Mario Kart 8, a game that could literally save Wii U... but that's something not even Nintendo believe anymore with those forecast numbers for 2014. Like, WTF? With this now I'm REALLY starting to get worried about Wii U's future because there's literally NOTHING to release on Wii U after MK8, meaning, we would have to wait another 2 or 3 months until the next worthy game release. That would kill every possible momentum Wii U could get thanks to Mario Kart 8. All the buzz with E3 is exciting but is obvious most of the games announced there are 2015 releases and how the heck Wii U is gonna survive 2014 with ZERO 3rd party support? There would not be CoD or Assasin's Creed anymore god damn it!! Wii U is such a great console it desserves to sell well! I'm going to bed, guys. Very sad :'(

don't look at the wii u as a system that can be saved. there's no turning around this ship. just enjoy the games you're looking forward to and have fun. the system will see its last major games release within the year and have a last hurrah at the end of 2015 before the console is replaced in 2016.
 

Nozem

Member
Can someone translate this news into the Nintendo-is-doomed scale below? Thanks.

Not doomed |…………………………………………| Doomed
 
Great....I was just convinced and bought a wii u and now I have Nintendo's fiscal report right before me....and it irritates me to no end. Is the Wii u "officially" declared dead? Reading a lot of threads in here....it almost seems like it. While that is OK.....I'm still worried that Nintendo has the same point of view.

I'm still hoping for a lot of quality first party Nintendo games.....is that a pipe dream?
 

JoeM86

Member
I agree that their future doesn't seem too bright. I think they'd work better as a developer. I can only imagine how insanely well something like Mario or Pokemon would sell on a Sony product.

As well as they do on Nintendo devices? Not likely. COnsider that only 5 games on the PS3 sold over 5 million, and Mario games have sold well over than on the 3DS. Hell, NSMBU is pushing that on a console with less than 10% of the PS3's installbase.

The PS3's consumer base is not the same as Nintendo's. Just because the PS4 is doing well, does not mean Nintendo would suddenly do amazingly on the PS4.

And hell, the Vita is doing worse than the Wii U, so why would Nintendo move Pokémon onto a device that has sold less than their latest iteration of Pokémon did on the 3DS

Can someone translate this news into the Nintendo-is-doomed scale below? Thanks.

Not doomed |…………|………………………………| Doomed

There you go. They need to sort things, but their decreases etc. are results of them working at improvement which won't be seen in the short term, rather than just absorbing losses.
 

Sandfox

Member
Great....I was just convinced and bought a wii u and now I have Nintendo's fiscal report right before me....and it irritates me to no end. Is the Wii u "officially" declared dead? Reading a lot of threads in here....it almost seems like it. While that is OK.....I'm still worried that Nintendo has the same point of view.

I'm still hoping for a lot of quality first party Nintendo games.....is that a pipe dream?

Nintendo will continue to release games for the Wii U.

LOL. They said that they wouldn't repeat the same mistakes again before the launch of WiiU.

Delays screwed up the Wii U's lineup. They just need better 3rd party support if they don't want droughts.
 

greg400

Banned
It SHOULD have only burned them once. Nintendo jumped into the fire pit with the 3DS, said "Ow that was hot!" barely jumped out in time, then thought "Now wait a second, was it really that hot?" and released the Wii U.

Now, like someone else pointed out, unless we get some release dates, currently their calendar is: Mario Kart 8 this month, and Smash Bros (which has a 3DS release which will sell better) in "Winter". It's painfully astonishing.
I think they will be alright in that regard assuming their lineup looks like this:
Mario Kart 8 - April
Bayonetta 2 - Summer
Sonic Boom - Fall
Hyrule Warriors - Late Fall/Winter
Smash Bros. - Winter

Maybe Yarn Yoshi in the Summer depending on how far along development is. I don't think X will come out until 2015 but it's another possibility for 2014.
 

cyberheater

PS4 PS4 PS4 PS4 PS4 PS4 PS4 PS4 PS4 PS4 PS4 PS4 PS4 PS4 PS4 PS4 PS4 Xbone PS4 PS4
Great....I was just convinced and bought a wii u and now I have Nintendo's fiscal report right before me....and it irritates me to no end. Is the Wii u "officially" declared dead? Reading a lot of threads in here....it almost seems like it. While that is OK.....I'm still worried that Nintendo has the same point of view.

I'm still hoping for a lot of quality first party Nintendo games.....is that a pipe dream?


Come on son. You knew it was dead before you bought it.
 

JoeM86

Member
I think they will be alright in that regard assuming their lineup looks like this:
Mario Kart 8 - April
Bayonetta 2 - Summer
Sonic Boom - Fall
Hyrule Warriors - Late Fall/Winter
Smash Bros. - Winter

Hyrule Warriors is Summer in Japan, so likely early Autumn elsewhere

Great....I was just convinced and bought a wii u and now I have Nintendo's fiscal report right before me....and it irritates me to no end. Is the Wii u "officially" declared dead? Reading a lot of threads in here....it almost seems like it. While that is OK.....I'm still worried that Nintendo has the same point of view.

I'm still hoping for a lot of quality first party Nintendo games.....is that a pipe dream?

No, it is not declared dead. Ignore the hyperbole of people here. Nintendo are still supporting it.
 
Nintendo being completely unaligned with Western market tastes, and thus the major suppliers of games, with the console that's selling terrible and significant threat of substitution from handhelds that's already in effect, is the most likely to emerge victorious and/or unscathed from the changing marketplace? Is this a fan-fiction thread now?
 
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