Support NeoGAF

[perfectchaos007]

Reggie is doing the best he can given the circumstances. Iwata and Nintendo of Japan have a tight leash on other markets because they don't trust their overseas counterparts to uphold the brand image properly. Only problem with that is there's a disconnect between cultures, Iwata restricts overseas in house marketing teams at Nintendo. If they don't change that philosophy, I don't see how Nintendo could ever optimize their business.

 

[TreIII]

That is... nowhere near as bad as I imagined.

I mean, it's not in any way good, but it's heading in a positive direction.

Likewise. I was expecting far worse, sadly.

Hopefully, all that talk about the 3DS becoming a "powerhouse" and the Wii U picking up the slack will continue the upward trend.

 

[Fourth Storm]

this is what makes me think they are releasing everything they've fucking got this year. pokemon, zelda, mario kart, yoshi, mario & luigi, mario wii u- anything and everything. they have to do this because there's no other way they're making $1b or coming close to it.

i'm really interested in their projections for the wii u. i'm guessing 10m for the fiscal year.

What about licensed merch? I'm assuming that Pokemon X/Y will bring on a new onslaught of cards, toys, etc. I don't have a clue how much this sort of stuff contributes to Nintendo's bottom line, but I'd imagine it to be somewhat significant.

And then there's the NFC capabilities of Wii U just waiting to be unlocked.

 

[Iacobellis]

You ever stop and wonder if Nintendo is releasing IP after IP for the 3DS because they finally have a handheld that can handle it? Or is just because they need to meet their goal? The DS didn't have a cluster of Mario games in such a short span of time. And Earthbound? I bet if the Wii sold like shit we would have that game six years ago.

 

[onipex]

Isn't this just what they are estimated to report? It could more or less. I expect them to post a loss , but this is actually less than I thought. I thought they would post at least a 30 billing yen loss with all the game delays, slow Wii U sales, falling DS/Wii sales, and moderate 3DS sales in the west.

 

[GiantEnemyGoomba]

You forgot point 4. Allocate all resources to a multitude of games to be released in 2 years ala 3ds.

Yup, Panic Nintendo is the reason the 3DS has such a great lineup this year.

 

[allan-bh]

Yeah, they forecast a $20 billion operating loss and $14 billion net income.

So ... just as keikaku

Well, the situation it's not that bad. In the end Nintendo had a profit this FY.

 

[jcm]

Pretty confused by this currency change - how does it affect their current total loss?

They have a whole bunch of US dollars in the bank. As the yen weakens, those dollars become worth more yen. So when they do their balance sheet, it appears to increase, since the balance sheet is in yen.

Example: I have $100 in the bank, and the exchange rate is 80 yen per dollar. So I have 8000 yen. 3 months later, the exchange rate is 100 per dollar. Now I have 10000 yen, so I've added 2000 yen to my net profit.

 

[Schnozberry]

I would not assume that, provided the next quarter or two is bad enough.

Iwata has a long leash. He was mentored and hand picked by Yamauchi. They could lose money like this for a decade and the company wouldn't be in any real danger.

 

[metalslimer]

Quoting because a lot of people in here are proving they don't read statements well enough to know right here is where the facts are.

Posts like these are why I come into these threads.

What's wrong with it? Nintendo is in the worst position they've been in. What should have been an ok year for the 3ds was turned disastrous by a failed launch of wiiu.

Iwata has a long leash. He was mentored and hand picked by Yamauchi. They could lose money like this for a decade and the company wouldn't be in any real danger.

Yes this is how business works. Oh hey guys its only a little loss of nearly 19 billion yen and we could lose this for a decade. Nintendo is publicly run.

 

[StreetsAhead]

And then there's the NFC capabilities of Wii U just waiting to be unlocked.

It begins Thursday. "Coincidentally" the day of the Investor briefing.

 

[Box of Bunnies]

Iwata... had a hard a life. He needs time to rest.

 

[Gamer @ Heart]

I was expecting last year level losses. Guess the 3ds had a better last quarter than I thought

I cant imagine what a price cut, if its in the works, will do to next years bottom line unless their holiday releases do gangbusters.

 

[onipex]

You ever stop and wonder if Nintendo is releasing IP after IP for the 3DS because they finally have a handheld that can handle it? Or is just because they need to meet their goal? The DS didn't have a cluster of Mario games in such a short span of time. And Earthbound? I bet if the Wii sold like shit we would have that game six years ago.

I think is part of the reason why people keep posting that Nintendo in panic mode is the best Nintendo.

 

[ClovingWestbrook]

Quoting because a lot of people in here are proving they don't read statements well enough to know right here is where the facts are.

Posts like these are why I come into these threads.

What's wrong with it. I don't remember a time in the last 15 years where Nintendo has been in such bad shape with their home console.

 

[Pappasman]

Big sword or short short, Iwata?

That reminds me of the unreleased Mega64 video where Iwata kills himself in a park.

 

[mysteriousmage09]

Bye Iwata.

 

[TreasureHunterG]

If Wii U Zelda ends up being half as good as Wind Waker, who gives a shit.

Then we shouldn't get our hopes that high for Zelda Wii U.

 

[Kazerei]

Just according to keikaku

 

[peanutbutterlatte]

Wind Waker was ultimately wonderfully charming, but not that great of a game IMO.

It was both, and a lot of people think so. Twilight Princess and Skyward Sword had a very length development time, were anything but rushed, and they were inferior for it.

 

[MDSLKTR]

 

[Meelow]

What's wrong with it. I don't remember a time in the last 15 years where Nintendo has been in such bad shape with their home console.

This is the first time Nintendo had to sell their systems by a loss.

The 3DS was sold at a loss for a time and the Wii U is as well, unlike the Wii and DS which were sold for profit day 1.

 

[Mlatador]

Oh, and I forgot to add something. Iwata will definitely NOT step down.

After all, HE was it who made Nintendo become the "Wii" Company, which made INSANE amounts of PROFITS. Even if he is not able to best the profits Nintendo made with the Wii/DS, if he manages to get even HALF of that, I'd be still very good.

However, I personally believe the 3DS to do as good as the DS and the Wii U maybe 70% as good as the Wii.

 

[Madao]

will this be the first full year that Nintendo loses money or did they have a full year of losses already? (i knew of a couple of loss quarters so far)

 

[metalslimer]

As bad as it is, Iwata likely won't be fired now, and i believe it would have already happened weeks ago as i dont think companies generally fire ceos on the exact day reports are released.

This is the first time Nintendo had to sell their systems by a loss.

Completely wrong.

 

[Scum]

this is what makes me think they are releasing everything they've fucking got this year. pokemon, zelda, mario kart, yoshi, mario & luigi, mario wii u- anything and everything. they have to do this because there's no other way they're making $1b or coming close to it.

i'm really interested in their projections for the wii u. i'm guessing 10m for the fiscal year.

I think it's down to 9m now. But yeah, Iwata and co. are going to use the 3DS to make up the numbers and then prep the WiiU for the same treatment.

It's high time NoA and NoE were released from their respective leashes and allowed a setup similar to NCL.

 

[Meelow]

As bad as it is, Iwata likely won't be fired now, and i believe it would have already happened weeks ago.



Completely wrong.

GameCube had to be sold at a loss when it was $99.

 

[Kazerei]

will this be the first full year that Nintendo loses money or did they have a full year of losses already? (i knew of a couple of loss quarters so far)

Last fiscal year, Nintendo lost money. And that was the first time it happened since entering the videogame industry.

 

[Schnozberry]

Yes this is how business works. Oh hey guys its only a little loss of nearly 19 billion yen and we could lose this for a decade. Nintendo is publicly run.

Yamauchi is the single largest shareholder and has a lot of influence on Nintendo's Board of Directors. Iwata already said resignation will happen if he can't turn it around this fiscal year.

 

[metalslimer]

GameCube had to be sold at a loss when it was $99.

DS was sold for a loss at launch.

 

[frankie_baby]

will this be the first full year that Nintendo loses money or did they have a full year of losses already? (i knew of a couple of loss quarters so far)

last year was a loss as well

 

[TreasureHunterG]

DS was sold for a loss at launch.

Was it? Never knew about that.

 

[Usobuko]

I don't follow Nintendo ( or for that matter, Sony/Microsoft ) news that well, what's there to drive the $100B Yen goal? I'm just curious about the big hitters.

Pokemon X/Y , Animal Crossing New Leaf, LoZ 3ds and ... ?

 

[mugurumakensei]

Last fiscal year, Nintendo lost money. And that was the first time it happened since entering the videogame industry.

They lost twice as much last year compared to this year even. Of course, this year they could have net income of 14 billion yen which is a positive.

 

[FStop7]

I predict Iwata goes after E3. New CEO debuts with a new vision at TGS.

 

[ClovingWestbrook]

This is the first time Nintendo had to sell their systems by a loss.

The 3DS was sold at a loss for a time and the Wii U is as well, unlike the Wii and DS which were sold for profit day 1.

This was the first time Nintendo had to sell their system at a loss? Regardless, look how well it's selling. That should terrify Nintendo. It's one thing to sell a system at a loss and have it sell well, it's another to have it sell as badly as the Wii U.

 

[SlipperyMoose]

So yeah that means one thing:

PANIC MODE ANNOUNCEMENTS!!! Yes!!

 

[serplux]

I predict Iwata goes after E3. New CEO debuts with a new vision at TGS.

Look, if he's going to go, it'll be next year.

 

[Meelow]

DS was sold for a loss at launch.

Didn't know about that, how long was it sold for loss for?

 

[grimshawish]

I predict Iwata goes after E3. New CEO debuts with a new vision at TGS.

CEO's are not product launches.

 

[Thoraxes]

What's wrong with it. I don't remember a time in the last 15 years where Nintendo has been in such bad shape with their home console.

Holy shit the VB came out over 15 years ago.

 

[Skyzard]

They have a whole bunch of US dollars in the bank. As the yen weakens, those dollars become worth more yen. So when they do their balance sheet, it appears to increase, since the balance sheet is in yen.

Example: I have $100 in the bank, and the exchange rate is 80 yen per dollar. So I have 8000 yen. 3 months later, the exchange rate is 100 per dollar. Now I have 10000 yen, so I've added 2000 yen to my net profit.

Thanks, that does help! Is that not already taken into account when assessing current total losses though?

 

[metalslimer]

Look, if he's going to go, it'll be next year.

Agreed unless things get much worse somehow which i dont really see how as the 3ds will mitigate some of the damadge wiiu is causing.

 

[StreetsAhead]

I don't follow Nintendo ( or for that matter, Sony/Microsoft ) news that well, what's there to drive the $100B Yen goal? I'm just curious about the big hitters.

Pokemon X/Y , Animal Crossing New Leaf, LoZ 3ds and ... ?

Mario Party 3DS, Mario & Luigi RPG 4, potentially Wii Fit U & Wii Party too.

 

[peanutbutterlatte]

AAAAH

IT'S JUDGE DOOM.

 

[krypt0nian]

It was both, and a lot of people think so. Twilight Princess and Skyward Sword had a very length development time, were anything but rushed, and they were inferior for it.

All the rest of the people on the planet can think so and it changes nothing of my opinion. I have no idea why people point that out. A lot of people like One Direction too. They are terrible.

It's a flawed neutered release, made worse by its complete lack of difficulty.

I agree that Twilight Princess and Skyward Sword were inferior, but that's just because the leadership in Zelda development has lost their way.

 

[Y2Kev]

Thanks! Is that not already taken into account when assessing current total losses though?

Most financial releases have what's called "constant dollars" as a non-GAAP metric for comparison purposes. Obviously Nintendo would be using JGAAP or IFRS, but it's the same idea. Constant dollars typically also accounts for de/inflation.

 

[ClovingWestbrook]

Holy shit the VB came out over 15 years ago.

When was the VB as important to Nintendo as the Wii U? Please. As bad as the GC sold, Nintendo didn't cancel it because it would have had terrible repercussions. Cancelling the VB didn't do nearly the damage that cancelling the Wii U would.

 

[allan-bh]

Iwata don't go before Ұ100 billion target fail

 

[TreasureHunterG]

Reggie is doing the best he can given the circumstances. Iwata and Nintendo of Japan have a tight leash on other markets because they don't trust their overseas counterparts to uphold the brand image properly. Only problem with that is there's a disconnect between cultures, Iwata restricts overseas in house marketing teams at Nintendo. If they don't change that philosophy, I don't see how Nintendo could ever optimize their business.

This shows how fucked up is Iwata's management and how it needs a change.