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[ec0ec0]

Region free eShops available in all territories and I'll be a happy Goomba.

and region free VC!!

 

[Busaiku]

I don't think Wii U has much to gain with a price drop.
It's still not seeing software, thus I doubt they'll make up for the decreased revenues.

 

[Neff]

and region free VC!!

 

[Plinko]

David Gibson @gibbogame

Hey @EndRegionLock , wait until the Q&A text from results meeting is out for updated @Nintendo view of ending region locking......

Would be insane but we'll never happen.

 

[Burai]

The mobile move could potentially indicate a lack of confidence in their hardware business if they were aiming to make a lot of money from it. But the main reason they're doing it is to strengthen IP visibility outside their own market as a means to bringing consumers back to the market where they really make money. And tellingly, they did assert that they were in the process of creating new hardware when they announced the mobile deal.

And much of this debate ignores the plain fact that -mathematically speaking- they're simply not going to make as much selling games for rival platforms as they do from the enormous amount of control they exert over their current model. You would have to see catastrophic losses over a long period of time and large-scale layoffs before Nintendo abandoning the hardware business became even viable let alone logical.

Like how the Wii was a gateway drug to the PS360?

Nintendo were incredibly relevant in recent memory. Nobody needs to be reminded about Super Mario Bros. or Pokemon. Those games never went away and nobody that bought a Wii but is now playing Angry Birds forgot that they liked those games. They aren't lapsed, they just got bored. They moved on and now Nintendo is moving on with them.

Their push into mobile development is all about creating a new revenue stream. Nobody is buying a $300 console and $60 games off the back of downloading a mobile game from the same developer.

 

[Peltz]

I clicked on the thread hoping for a good gif and I'm leaving quite satisfied.

 

[Eolz]

I would be surprised if the region lock statement is about current platforms.
The new membership might be linked to this though, could at least allow the same store in the same region for example (like a single store in EU)...

 

[Storm Kyleis]

Can it happen? Yeah. Will it happen? I imagine it happens after at least one more wii U level failure...and even then.

Going 3rd party isn't this amazing move, people. It is you as a company admitting you aint shit and thus need to kill one of your branches to save yourself. You don't willingly give up power unless you really really have to.

The Nintendo that goes third party will be in a lot rougher shape than people imagine. They won't and shouldn't do so until they have to. And if they can keep making a profit with the level of disaster the Wii U is, then I expect it won't happen for a while.

I'm not saying it will never ever happen, I am saying that it won't be this sunshine and rainbow scenario if it does.

3rd party Nintendo is not current Nintendo but on more consoles. Many franchise will effectively be dead. Many of the actual development teams will be cut down. And I question if there will be this big boom upon release on new consoles people expect...or will these titles still sell wii U release numbers or worse.

I really think the number of people who would legit quit gaming out of fanboy rage, those who NEVER were interested in Nintendo games and such is not being taken into consideration here. I think the number of people who are interested in Nintendo games but not enough to buy the console isn't this large untapped crowd...I feel as if many of those will find another reason to pass on buying their games (mainly y'know not being the only games on the block competing for time anymore...the reverse reason 3rd party companies don't release games on nintendo systems allegedly).

But again I am not saying it won't happen...I just question if it is that great of a thing for gamers, nintendo fans, Nintendo themselves longterm (key word, because short term it would be awesome to play Nintendo games on my ps4, I'll admit that...but longterm I fear that it wouldn't be sustainable). I feel the same way about them releasing Mobile Games. It'll be great for profits and short term gain...but I wonder if it will eat into their handheld division.

This is 100% true. Especially the bolded parts.

People think of "Nintendo going third party" as simply as Mario on PlayStation, without considering or understanding the financial consequences for Nintendo and their developer teams. If you care about Nintendo and their franchises you don't want them to lose their position in the hardware market. This whole argument is also getting really stale.

 

[Neff]

Nintendo were incredibly relevant in recent memory. Nobody needs to be reminded about Super Mario Bros. or Pokemon.

You misinterpret me. Nintendo's problem isn't one of acknowledgement, everybody knows who Mario is. The issue is one of awareness and acceptance. People know who Mario is, but they're not thinking about him. Their friends aren't playing him. Nintendo's sense of awareness with consumers is stuck in a rut. People consume products when they see it around them and accepted by others. People participate in the activities their friends do. This is something Sony has always understood very well and has (for the most part) always been good at. Nintendo has gotten incredibly complacent about making their products attractive to consumers beyond what they offer in themselves. Things like toys to life and theme park attractions are exactly the kind of methods they should be using to put their kind of family-friendly products back into people's consciousness.

Those games never went away and nobody that bought a Wii but is now playing Angry Birds forgot that they liked those games. They aren't lapsed, they just got bored. They moved on and now Nintendo is moving on with them.

You're talking about Wii impulse purchasers here, which was never really Nintendo's audience in the first place. Obviously Nintendo would like those customers back, but that's much easier said than done. The audience they should be worried about not having at this point is the long-term gaming customer they had and lost during the N64/GC era to Sony.

 

[ShockingAlberto]

The problem with going third party is that all those people that make your amazing games for you would probably become discontent, or be paid less because they're doing less (Konno, for example, does more than just design Mario Kart), or just be a part of the presumed downsizing that has to come from getting out of an entire sector.

I'm not saying it will never happen - I choose my words carefully enough to not say that often - but it wouldn't be as simple as "Okay, we're making the exact same games we made but on PS4 now." It wouldn't be lending your neighbor a cup of sugar, it would be that your house has burned down and you have no more options on the table.

 

[StevieP]

It's not as amazing as it really should have been, particularly in regard to exclussives, but I do think Sony isn't given enough credit for how well implemented an overall package the PS4 is.

It's got lots of little things. The design, the cost to power ratio, the big if multiplat/indie centric library, the undeniably improved controller and online infrastructure, the marketing and the instant game collection taking the sting out of paid online multiplayer, it all adds up, and gives a very worthwile, inclusive product overall.

But yes, knowing how well they'll support the system going forward, and the quality of exclussives to come, definitely helps.



Which is why I own a WiiU. Because I am (and presumably you are too) part of that fanatical, very small, hardcore Nintendo fanbase.

But given how few of us there are, clearly those fantastic games aren't enough, nor are they that fantastic to the general gaming public, or even the broader enthusiast market.

In what world is the ps4 controller massively improved over ds3? My ds3 battery lasts more than a play session and the sticks aren't peeling. And I don't think PSN has seen any improvement besides the fact that you've been made to pay for its most sought out features under the guise that you'll get free rentals of indie titles/bombed retails while you continue to funnel money to them.

Despite its ridiculous losses, the PS3 provided me personally with much better value (as a primarily PC gamer) than the PS4 likely ever will because we are in the middle of a period of consolidation now, where there are far fewer console games being made in the retail space. Dozens of compelling exclusives are why I own consoles in the first place. It's also why both the Wii and the Wii u had places in my household.

 

[Griss]

There is just an absolutely astonishing lack of historical context to this statement that hugely undermines the point you're trying to make.
"Sonic? Who the fuck is sonic? Some busted ass old shitty franchise nobody cares about. Mario? THATS a system seller!

You're making fun of me with that invented quote but it's essentially exactly what I believe. I don't care what happened in the early 90s. Different era, different culture. I care what happened from 2005-now. The last decade. In which Mario games have consistently sold consoles, from the Wii to the DS to the 3DS to the Wii U. Mario Kart and Mario platformers have consistently spiked console sales of every one of those systems. The Wii U's top 6 selling games (top fucking six!) all star Mario in some form. Look earlier in the thread - almost every single Wii U 1.5 mil+ seller has mario in it. The guy has sold 10 million Wii U's almost single handedly. That's recent history. That's relevant. You think Sonic would have sold those Wii U consoles in the absence of Mario? You're free to believe that if you want, man, but it's a world away from my read on the situation.

 

[Peltz]

Jeez... is this accurate?

Seems to tell such a different story than the media has led us to believe over the years. Nintendo may not sell the most hardware or software, but they're pretty darn efficient where it counts.

I can't believe there is so much"Nintendoomed" rhetoric out there. Then again... that big decline starting in 2010 was alarmingly steep.

 

[E-phonk]

I can't believe there is so much"Nintendoomed" rhetoric out there. Then again... that big decline starting in 2010 was alarmingly steep.

Hardware generation lasts 5-8 years, and as you said, their decline coming from Wii 2010 into 2012-2013 was very alarming. It went from years with record profits right into loss territory.
It was also the first time they did negative numbers.

 

[JoeM86]

Hardware generation lasts 5-8 years, and as you said, their decline coming from Wii 2010 into 2012-2013 was very alarming. It went from years with record profits right into loss territory.
It was also the first time they did negative numbers.

2011 was when they did the 3DS and had to do a drastic price cut, and then it took off at that price. General consensus is what, $50 loss per unit at that time, with 11 million units sold during that period. That sort of loss does hurt. Tied with Wii being dead, it was not a good time.

 

[MrNyarlathotep]

You're making fun of me with that invented quote but it's essentially exactly what I believe. I don't care what happened in the early 90s. Different era, different culture. I care what happened from 2005-now. The last decade. In which Mario games have consistently sold consoles, from the Wii to the DS to the 3DS to the Wii U. Mario Kart and Mario platformers have consistently spiked console sales of every one of those systems. The Wii U's top 6 selling games (top fucking six!) all star Mario in some form. Look earlier in the thread - almost every single Wii U 1.5 mil+ seller has mario in it. The guy has sold 10 million Wii U's almost single handedly. That's recent history. That's relevant. You think Sonic would have sold those Wii U consoles in the absence of Mario? You're free to believe that if you want, man, but it's a world away from my read on the situation.

No, I'm saying that Sonics decline as a mascot character capable of selling hardware and being culturally relevant correlates precisely with Segas decline as a hardware manufacturer.

I mean, you can choose to believe that that is entirely coincidental if you wish, but you cannot deny the correlation.

EDIT:
Let me put it his way:
Sonic was relevant because Sega was relevant. Mario is relevant because Nintendo is relevant.

 

[AniHawk]

The problem with going third party is that all those people that make your amazing games for you would probably become discontent, or be paid less because they're doing less (Konno, for example, does more than just design Mario Kart), or just be a part of the presumed downsizing that has to come from getting out of an entire sector.

I'm not saying it will never happen - I choose my words carefully enough to not say that often - but it wouldn't be as simple as "Okay, we're making the exact same games we made but on PS4 now." It wouldn't be lending your neighbor a cup of sugar, it would be that your house has burned down and you have no more options on the table.

but they'll be making more money than they are now the userbase size says so

 

[DXB-KNIGHT]

but they'll be making more money than they are now the userbase size says so

Your Darn Right !
Isn't it right Sega,
Sega?
Sega!
SSSEEEGAAAAA!!!!

 

[Mpl90]

When I looked at the graph earlier today, I didn't notice that much (and I thank ZSaberLink for seeing it), but...not only both Q3 and Q4 have been very big for Nintendo. What's really surprising is how Q4 (Jan-Mar 2015) was almost on par with Q3 (Oct-Dec), a lot bigger than Q4 in 2013/2014. What could have caused this kind of increase in their sales transitions in the quarter immediatly after the Holidays?

 

[Chindogg]

Jeez... is this accurate?

Seems to tell such a different story than the media has led us to believe over the years. Nintendo may not sell the most hardware or software, but they're pretty darn efficient where it counts.

I can't believe there is so much"Nintendoomed" rhetoric out there. Then again... that big decline starting in 2010 was alarmingly steep.

3 quarters of losses in 125 years of business. Those 3 quarters mostly due to greatly expanding the company in Europe and Japan as well as buying back the stock from Yamauchi's heirs.

 

[Circinus]

Jeez... is this accurate?

Seems to tell such a different story than the media has led us to believe over the years. Nintendo may not sell the most hardware or software, but they're pretty darn efficient where it counts.

I can't believe there is so much"Nintendoomed" rhetoric out there. Then again... that big decline starting in 2010 was alarmingly steep.

Wow, they really made a lot of money during the Wii/DS era. Not really surprising though. They sold 250 millions of those systems with profit and their first-party games were selling decamillions. (Mario Kart Wii / DS and New Super Mario Bros. Wii / DS sold like 30 million each or something? Crazy)

SCE on the other hand has really tiny profit margins and I assume they rely mostly on royalties from 3rd party games for revenue and profit. The success of PS4 seems like it's definitely being overstated (financially).

 

[Circinus]

There's denying that the PS3 was a colossal fuck up that put ego's and arrogance over profitability, but that was far more a symptom of a wider sickness at Sony at that time.

You'd think "ego and arrogance" would be in line with aiming for high profitability no?

If they're providing more value to consumers by selling at lower price than production, then that's a great deal for consumers. That isn't arrogance imho. PS3 was great value for its price.

PS4 on the other hand is low-end / mid-range hardware that doesn't feel nearly as cutting-edge for its time as PS3 and is not backwards compatible unlike PS3. Also, can you explain what the "wider sickness" was? I've never heard about that.

 

[Astral Dog]

You'd think "ego and arrogance" would be in line with profitability no?

If they're providing more value to consumers by selling at lower price than production, then that's a great deal for consumers. That isn't arrogance imho. PS3 was great value for its price.

PS4 on the other hand is low-end / mid-range hardware that doesn't feel nearly as cutting-edge for its time as PS3 and is not backwards compatible unlike PS3. Also, can you explain what the "wider sickness" was? I've never heard about that.

PS3 had an architecture that was so exotic developers took years to adapt, a price that was well above the range of most costumers/target audience for the product, no visible difference from its cheaper competition (at first), increased focus on multiplatform titles made the brand weaker too.
Thats what some people see as "ego and arrogance", PS3 had the BR, wich was forward thinking, but other than that it was kind of a mess, at least at first.

PS4 on the other hand, its sold at a reasonable price, easy to develop for,targeted to the "core gamer"and everybody knows that its stronger than the Xbox ONE and Wii U, it doesnt need to be cutting edge, just stronger.

 

[Pizza]

The problem with going third party is that all those people that make your amazing games for you would probably become discontent, or be paid less because they're doing less (Konno, for example, does more than just design Mario Kart), or just be a part of the presumed downsizing that has to come from getting out of an entire sector.

I'm not saying it will never happen - I choose my words carefully enough to not say that often - but it wouldn't be as simple as "Okay, we're making the exact same games we made but on PS4 now." It wouldn't be lending your neighbor a cup of sugar, it would be that your house has burned down and you have no more options on the table.

This is why I have trouble believing "Nintendo is going to die" nonsense. Nintendo has lots of money in the bank, and their one focus is video games. Microsoft and Sony both have lots of other things that they juggle. Sony, last I checked, is *relying* on the Ps4 to make up for other parts of the company doing worse. Microsoft is super into making money off Xbox, and computers aren't going anywhere.

Even if Nintendo is in third place it really just means that they're making the least money. Nintendo would really have to start bleeding money from a number of big failures and keep making mistakes until they have no other choice but to go third party.

Then you get Mario Boom on Xbox.

 

[Circinus]

PS3 had an architecture that was so exotic developers took years to adapt, a price that was well above the range of most costumers/target audience for the product, no visible difference from its cheaper competition (at first), increased focus on multiplatform titles made the brand weaker too.
Thats what some people see as "ego and arrogance", PS3 had the BR, wich was forward thinking, but other than that it was kind of a mess, at least at first.

PS4 on the other hand, its sold at a reasonable price, easy to develop for,targeted to the "core gamer"and everybody knows that its stronger than the Xbox ONE and Wii U, it doesnt need to be cutting edge, just stronger.

Well, I didn't have a PS3 at launch, but it's silly if people view that as arrogant considering the cutting-edge hardware it contained. CELL, RSX, Blu-ray, PS2 hardware for PS2, PS1 compatibility on top of PS3 games. It was was unprecedented for its time. Considering the hardware was like €800 in production costs, but only had an RRP of €599, that seems like great value to me. (not to mention, Blu-ray players were extremely expensive at the time)

Considering it ended up having all multiplatform games on top of great first-party games over the course of the generation, it seems like it was great value.

You don't need to look just at price. You need to look at value. €600 for high-end top-of-the-line hardware is a better deal than €400 for low-end hardware.

In that comparison, PS3 definitely has the more reasonable price and PS4 seems really underwhelming in comparison. PS3 might have been a mess for SCE financially, but compared to PS4, it seems like it was easily the better deal for consumers.

It's a shame that Ken Kutaragi doesn't work for SCE anymore.

This is why I have trouble believing "Nintendo is going to die" nonsense. Nintendo has lots of money in the bank, and their one focus is video games. Microsoft and Sony both have lots of other things that they juggle. Sony, last I checked, is *relying* on the Ps4 to make up for other parts of the company doing worse. Microsoft is super into making money off Xbox, and computers aren't going anywhere.

Even if Nintendo is in third place it really just means that they're making the least money. Nintendo would really have to start bleeding money from a number of big failures and keep making mistakes until they have no other choice but to go third party.

Then you get Mario Boom on Xbox.

I think you need to check again, because Sony Computer Entertainment is doing way worse than Nintendo financially and while PlayStation brings in a lot of revenue, their actual profit numbers are pretty low.

Sony's main profit drivers are devices (Exmor camera sensors + semiconductors), imaging products & solutions (cameras and professional imaging equipment), audio/video home entertainment electronics (home cinema sets, beamers, audio equipment etc), movies (Sony Pictures studios' films and TV), music (Sony Music labels) and financial services.

Hope they'll do very well in the mobile and TV's going forward because those are two areas where they excel in.

 

[QaaQer]

Hardware generation lasts 5-8 years, and as you said, their decline coming from Wii 2010 into 2012-2013 was very alarming. It went from years with record profits right into loss territory.
It was also the first time they did negative numbers.

The market has been disrupted like never before. Nintendo is making moves to deal with the new landscape, and only time will tell how everything is going to shake out.

They do have the most valuable ip in gaming, so it would take some pretty amazing incompetence to doom them, however. I'm looking for them to pull an IBM and reinvent themselves.

 

[StevieP]

Perceived value is very different from bill of materials value.

The ps3 had a very low perceived value to the mass market, despite the fact that it cost a lot more to build than what it sold for.

 

[QaaQer]

Perceived value is very different from bill of materials value.

The ps3 had a very low perceived value to the mass market, despite the fact that it cost a lot more to build than what it sold for.

Really? Like they valued it at $99 or something?

iirc, it was a pretty good blu ray player at the time, had ps2 compatibility, and offered the promise of years of content.

 

[StevieP]

Really? Like they valued it at $99 or something?

iirc, it was a pretty good blu ray player at the time, had ps2 compatibility, and offered the promise of years of content.

The sales for the first few years of its life spoke for themselves. Or did you forget about the GBA battles? It didn't matter how many things it did, it was simply too expensive for the market at large. They needed it to match their wanted pricing before they jumped in.

 

[Stilton Disco]

The sales for the first few years of its life spoke for themselves. Or did you forget about the GBA battles? It didn't matter how many things it did, it was simply too expensive for the market at large. They needed it to match their wanted pricing before they jumped in.

Launch aligned, the PS3 outsold the cheaper 360 from day one, and has gone on to sell over 80 million, far more than any Nintendo home console other than the Wii, which it sold far more consistently than over the course of gen 7.

It's hardly been rejected by the consumer.

 

[GhostTrick]

Still no Q&A available ?

 

[Mpl90]

Another tidbit from the Financial Release itself (million Yen)

Total software FY15 - 255,273
Digital sales FY15 - 31,300
% of digital on overall software sales FY15 - 12.26%

Total software FY14 - 253,826
Digital sales FY14 - 24,000
% of digital on overall software sales FY14 - 9.45%

 

[ZhugeEX]

Another tidbit from the Financial Release itself (million Yen)

Total software FY15 - 255,273
Digital sales FY15 - 31,300
% of digital on overall software sales FY15 - 12.26%

Total software FY14 - 253,826
Digital sales FY14 - 24,000
% of digital on overall software sales FY14 - 9.45%

Is there a split by platform? (revenue)

 

[jvm]

Another tidbit from the Financial Release itself (million Yen)

Total software FY15 - 255,273
Digital sales FY15 - 31,300
% of digital on overall software sales FY15 - 12.26%

Total software FY14 - 253,826
Digital sales FY14 - 24,000
% of digital on overall software sales FY14 - 9.45%

I sent graphs to Gamasutra which they used in a news item today:

 

[shinra-bansho]

3 quarters of losses in 125 years of business. Those 3 quarters mostly due to greatly expanding the company in Europe and Japan as well as buying back the stock from Yamauchi's heirs.

It's actually 3 years of operating losses, so the latter factor wouldn't really be relevant at all, while the former factor isn't that relevant if you're referring to capital expenditures on long-term assets. I'd have to check, but I don't think that the company increased their SG&A considerably in those three years due to any particular expansion.

The company was simply operating at a loss for three years, because their gross income fell considerably, and were unable to cover their SG&A.

The reasons for the return to operating income are 1) an improvement in gross margins, and 2) a decrease in SG&A.

 

[The Mad Draklor]

Perceived value is very different from bill of materials value.

The ps3 had a very low perceived value to the mass market, despite the fact that it cost a lot more to build than what it sold for.

Your statement would be true for the US and UK, but the rest of the world still perceived the PS4 to have better value than the 360.

 

[samar11]

I clicked on the thread hoping for a good gif and I'm leaving quite satisfied.

In the console market, they are deep in the grave actually.They will do good as other suggested due to expanding to areas outside of gaming.

I am happy because I grew up with Nintendo and it would be sad for them to go. GO NINTEDO! lolll

 

[Road]

Latest dual-screen shipments updated.

Separated by region:

 

[jvm]

Separated by region:

Beautiful images as usual, Road. The rebound in handheld shipments outside of Japan, compared to Japan's continued decline is very noticeable. Has this been discussed elsewhere? I'd be interested in the comments that the better side of Sales-GAF had on that trend.

 

[CassSept]

Beautiful images as usual, Road. The rebound in handheld shipments outside of Japan, compared to Japan's continued decline is very noticeable. Has this been discussed elsewhere? I'd be interested in the comments that the better side of Sales-GAF had on that trend.

I'm kinda going by memory here, but from what I remember handheld sales in the west accelerate as the price drops, while Japanese customers tend to jump on board earlier on.

In case of DS for example, GBA was still going very strong in the US while it was massacring everything in sight in Japan and GBA was faltering. Similarly, DS sales fell off a cliff in Japan after 3DS was released, but it still sold at similar levels in the US for a while (though smaller than GBA during GBA->DS transition), which was killed very early, DS released 3.5 years after GBA; 3DS 6.5 years).

Japanese handheld market shrank considerably and it's mostly saturated now, so there's not much Nintendo can do to improve 3DS sales. Meanwhile, 3DS got cheaper and arrived at a much reasonable price for a handheld to general audiences, which decided to buy it.

At least, that's my take with a nice dose of generalization.

 

[Entryhazard]

When will the Q&A be published?

 

[GhostTrick]

When will the Q&A be published?

That's what I wonder as well... I guess it's for monday then.

 

[javadoze]

When will the Q&A be published?

Now.

 

[Vena]

Now.

Well then, time to find out what the word is on region locking supposedly.

 

[Koppai]

Now.

Is there an English version?

 

[javadoze]

Well then, time to find out what the word is on region locking supposedly.

https://twitter.com/FarmboyinJapan/status/597240530322370560
https://twitter.com/FarmboyinJapan/status/597241118107901953
https://twitter.com/FarmboyinJapan/status/597241925633118208
https://twitter.com/FarmboyinJapan/status/597243051417808897

The gist is that they're deciding internally how to go about making the NX region-free, but nothing is official yet (however, Iwata himself is supportive of a region-free system).

 

[Zoon]

https://twitter.com/FarmboyinJapan/status/597240530322370560
https://twitter.com/FarmboyinJapan/status/597241118107901953
https://twitter.com/FarmboyinJapan/status/597241925633118208
https://twitter.com/FarmboyinJapan/status/597243051417808897

The gist is that they're deciding internally how to go about making the NX region-free, but nothing is official yet (however, Iwata himself is supportive of a region-free system).

NX confirmed best console

 

[Plinko]

I honestly have no clue what they're planning with NX. Those comments about a new concept are as vague as can be.

Also, I couldn't quite get that translation about NX--did they say they'll first talk about it in 2016 or it will release in 2016?

 

[Astral Dog]

They probably want region free, but with a "Nintendo Twist"

 

[Jomjom]

I like how they are talking about the removal of region locking like it's some incredible new invention of the 21st century or something. It's not as if nearly every single one of your past handhelds have been region free...