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

Shiggy

Member
Realistic forecasts, I can actually see Wii U selling more than expected!

Smash, Kart, X will be a good punch.

X would be a huge AAA title on X1 and PS4, but on Wii U? It's not really aimed at the Wii U audience as it lacks a family-oriented art and gameplay style and as it does not feature Mario either.
 

cw_sasuke

If all DLC came tied to $13 figurines, I'd consider all DLC to be free
Don't forget Bayonetta 2. The first did pretty well, didn't it? Not a huge hit, but a good seller.
Barely sold a million on hundred million PS360 consoles, let's see how much it'll sell on 6 million WiiUs.
 

Y2Kev

TLG Fan Caretaker Est. 2009
Oh, didn't see the supplemental note. They're still holding a crapload of inventory though. :S

The impairment should have been charged to cost of sales, but gross margin increased? I guess it's from the increase in software sales. I think they report the amount in their annual report whenever that comes out.
It's not clear to me to what extent they impaired Inventory if it was that small a loss. Wouldn't they need to explicitly disclose a significant impairment?
 

Ty4on

Member
Mariokart won't move the needle in any direction, just like NSMB U didn't despite that insane attach rate.

Yes it will. I have myself been playing with the thought that the WiiU might even beat the XO in an NPD month, but the launch in between two months might make it hard.
 

Mandoric

Banned
On a system starved for content, if the quality is high, a proper marketing push could make it a strong seller.

It's coming from a very low base, though. Isn't the original Xenogears, which came right in the peak of the PSX RPG boom, the only one of Takahashi's giant robots/religious symbolism/the letter "X" titles to break a million?
 

Tobor

Member
Why are you so sure QOL will flop?

Common sense. Look at the market that already exists for QOL tech, take a look at what's coming, and add to that Apple, Google, Samsung, and everyone else coming into this space in a big way. I don't trust Nintendo hardware designers to be able to compete on this level, and I don't trust Iwata to sign off on the right product and strategy.

Iwata is steering his storm battered ship straight into the Bermuda Triangle.
 

10k

Banned
The Wii was like a hall of fame basketball player. The Wii U is the son of that hall of famer that isn't nowhere near as good as his father and barely makes it off the bench and is only employed in the nba because of who their father was.

Just let it go Nintendo. Let the Wii U go. Shift over all development to PC close to benchmarks of the next console you want and only release what's left for Wii U (Zelda, Smash, Bayonetta 2, X, MK8) and then port over Zelda as a launch title for the new console.
 

Tregard

Soothsayer
We don't know where the R&D money went, we don't know what the QoL platform is, and the money they spent on Yamauchi's shares isn't gone because they can sell the shares again.

Surely those shares a becoming worth less and less all the time now though?
 

10k

Banned
He's not canned because he's still probably the most successful manager in the industry overall. He's also not solely responsible for everything that goes wrong. I believe there even was a Nikkei article a while ago claiming that Wii U wasn't really what Iwata wanted, it's what some members of the board wanted. If true, that failure would potentially strengthen Iwata's position internally.
Then he needs to grab his balls and say "I'm the CEO and I know what's best for this company" and not listen to the same kind of investor that wants Nintendo to go mobile.
 
Let's be honest, even without knowing much about it there's a decent chance it probably will.

I really feel like Nintendo needs to simplify and streamline

Just look at the WiiU. Its a convoluted mess with no less than 4 cords popping from it. Supports several peripherals that all need batteries.... all of which drain them relatively quickly.

A serious lack of Commitment to provided a Smooth user experience, lack of unified content access, mountains of slow menus, Poorly implemented storage setup.

Im just hitting the tip of the iceberg. Of all of the systems it provides the SMALLEST bang for your buck which is counter-intuitive considering its backwards compatibility (which is totally botched and half assed)

The design philosophy of their entire ecosystem is over complicated and BROKEN and thats not just the WiiU but the Nintendo network and content distribution as a WHOLE.

End of story.
 

Metallix87

Member
Common sense. Look at the market that already exists for QOL tech, take a look at what's coming, and add to that Apple, Google, Samsung, and everyone else coming into this space in a big way. I don't trust Nintendo hardware designers to be able to compete on this level, and I don't trust Iwata to sign off on the right product and strategy.

Iwata is steering his storm battered ship straight into the Bermuda Triangle.
The thing is, that market has yet to find it's "iPhone". All the current products in the market have failed to hit the potential highs that people see in the market.

We don't know what Nintendo is making, but we know it's hitting that market from a new angle, so I think we should at least wait and see what they offer before writing them off.
 
The Wii was like a hall of fame basketball player. The Wii U is the son of that hall of famer that isn't nowhere near as good as his father and barely makes it off the bench and is only employed in the nba because of who their father was.

Just let it go Nintendo. Let the Wii U go. Shift over all development to PC close to benchmarks of the next console you want and only release what's left for Wii U (Zelda, Smash, Bayonetta 2, X, MK8) and then port over Zelda as a launch title for the new console.

Yep killing off the console that early that it doesn't even see the zelda thats already in development will sure do wonders for its image to the fans that bought the wii u.
 

RedSwirl

Junior Member
It should be noted that the large operating loss and overall net loss is largely due to some one-time injections they had in Q4.

Remember, they added 15bn yen into R&D and 8bn yen into Marketing. That essentially covers their entire net loss and the increase in Operating Loss.

If you compare Q1 through Q3 for the last few years, there's clear improvement.

This will probably go ignored, even by news sites.
 

lowrider007

Licorice-flavoured booze?
What I find upsetting about their Wii-U sales forecast is that it tells me that there probably won't be any drastic price cuts :-(

I always end up owning every Nintendo system but only when they reach what I consider a fair price and the Wii-U is far from that atm imo.

They need an ultra basic pack with just the Pro Controller @ £129, I'm desperate to play some of the titles out already but I'm not paying the price of admission for how basic the hardware is.
 

bud23

Member
Nintendo deserves to do better IMO.

Nah, they have learned nothing, they deserve nothing.

And yeah, it should not surprise anyone. Everything related to this console has been a total disaster since the very beginning, just remember all the confusion surrounding Wii U at E3 2011. Fucking ridiculous.

Too much complacency, too much arrogance,and an astonishing level of incompetence, that's when really terrible things happen.

They have become stagnant, zero innovation, just relying on Zelda remakes and Mario 3ds ports. Neglecting core gamers,huh, neglecting 3rd party support,neglecting market, neglecting everything. They have the incredibibly talented Retro, so what? Another 2D platformer, cause Wii U hasn´t enough of them. Pathetic.

And now they think they can redeem themselves with that QOL thing? You have got to be kidding me, they are ignoring the market again. They have learned nothing.

It´s like they are trying to erase themselves from history. Oh well.
 

Metallix87

Member
I asked you a question and dodged it. Selling better than Xenoblade is not a big feat and in no one's books dictates a strong seller other than your warped definition.
I "dodged" because I'm lacking data. I don't know when it launches, what kind of marketing push it gets, and where the Wii U will be when it launches.
 
Terrible, just terrible. I love Nintendo but I think they well deserved. Wii U is completely targeting to a false market making neither Nintendo fans and hardcore gamers happy and gathering to the non excistent family/kids/casual player who have fled to smartphones or are using normal Wii.
 

mclem

Member
Divine Retribution for making the gamepad not support multitouch and thus be bad at rhythm gaming. No snakesalute for you nintendo ( ̄へ ̄)

There aren't *that* many rhythm games that require multitouch and an awful lot that don't. Okay, so it doesn't support DJMax Technika, and that's a shame. Beyond that, I'm struggling.
 

Ty4on

Member
They need an ultra basic pack with just the Pro Controller @ £129, I'm desperate to play some of the titles out already but I'm not paying the price of admission for how basic the hardware is.

They could easily do that. Just need to sell built up inventory and make a new revision lacking a CPU :p

Edit:
I really feel like Nintendo needs to simplify and streamline

Just look at the WiiU. Its a convoluted mess with no less than 4 cords popping from it. Supports several peripherals that all need batteries.... all of which drain them relatively quickly.

A serious lack of Commitment to provided a Smooth user experience, lack of unified content access, mountains of slow menus, Poorly implemented storage setup.

Im just hitting the tip of the iceberg. Of all of the systems it provides the SMALLEST bang for your buck which is counter-intuitive considering its backwards compatibility (which is totally botched and half assed)

The design philosophy of their entire ecosystem is over complicated and BROKEN and thats not just the WiiU but the Nintendo network and content distribution as a WHOLE.

End of story.
I had to quote this because it sums up my thoughts as well. The 3DS as well is poor bang for buck sharing parts used by the Nokia Asha phones designed for third world countries.
 
How much WiiU inventory does Nintendo have? If they have enough to last atleast a couple of years which they'll drop it once they run out.

Games wise all the WiiU is to Nintendo is a way to build up a library for their next hardware. The question is when will they stop?
 
The real problem is not the Wii U.

The real problem is how is Nintendo going to convince publishers and customers to invest in their next home console.

Other than capturing lighning in a bottle like they did last gen, they have been in a downward spiral since the NES. The moment they had any kind of competition, they started losing the market.
 

NeonZ

Member
Yes it did. The WiiU had a good launch.
They weren't able to follow up on it in any way - with months of software drought, but the launch with NSMB U wasn't that bad.

Can you really call it a good launch when it had cratered by the third month? Even December had underwhelming numbers considering Nintendo's usual boost there.
 
What I find upsetting about their Wii-U sales forecast is that it tells me that there probably won't be any drastic price cuts :-(

I always end up owning every Nintendo system but only when they reach what I consider a fair price and the Wii-U is far from that atm imo.

They need ultra basic pack with just the Pro Controller @ £129, I'm desperate to play some of the titles out already but I'm not paying the price of admission for old basic the hardware is.

Exactly

You know why Smartphones and Tablets are taking over? Simplicity, Power, Value.


- You buy a WiiU
- Spend nearly as much as an Ipad
- Hook up 3-4 cords (including the gamepads separate charger wtf)
- Sit through hours of SLOW updates
- Trudge through slow confusing menus to set up internet and other options
- Pay 60 dollars for a game
- Sit through SLOW game updates
- Play for a few hours and then charge your shit/change batteries

Thats not even the end of the hoops Nintendo makes customers jump through to get to playing games.
 
X would be a huge AAA title on X1 and PS4, but on Wii U? It's not really aimed at the Wii U audience as it lacks a family-oriented art and gameplay style and as it does not feature Mario either.
Which is exactly why I expect it to push hardware, it's an unexplored audience on Wii U.

MH3U moved more systems than most of the Nintendo happy games.
 

crinale

Member
What I find upsetting about their Wii-U sales forecast is that it tells me that there probably won't be any drastic price cuts :-(

I always end up owning every Nintendo system but only when they reach what I consider a fair price and the Wii-U is far from that atm imo.

They need ultra basic pack with just the Pro Controller @ £129, I'm desperate to play some of the titles out already but I'm not paying the price of admission for old basic the hardware is.

People need to understand that if you are going against electronics giant or software overlord then it will generally cost you more to make a console, unless you cut corners somewhere. Just because Nintendo have zillions of warchest there's a low limit they can go price-wise.
 
I "dodged" because I'm lacking data. I don't know when it launches, what kind of marketing push it gets, and where the Wii U will be when it launches.

So then how can you claim it will be a strong seller? How does one reach that conclusion? MK, 3D world, Smash are strong sellers. Zelda may also be a strong seller. X is not.

Lets say it comes out in Q1 2015. Lets say Nintendo meets projections so there are 9 million wiiu's.
 
The thing is, that market has yet to find it's "iPhone". All the current products in the market have failed to hit the potential highs that people see in the market.

We don't know what Nintendo is making, but we know it's hitting that market from a new angle, so I think we should at least wait and see what they offer before writing them off.

Apple's entering the same industry soon, they've got iwatches planned out this year that can do all the QoL things that every other company has been carving out right now in the market. Remember that Apple does not enter a new market unless they are 100% sure they have a winning formula. There's no doubt that even with the worst projections, due to Apple's popularity through the world. They will no doubt be the "iphone" of the industry and carve out a huge chunk.
 

rokero

Member
I'm fairly optimistic Nintendo can recover from this and WiiU will surpass its projected sales from what I hear at gamestop's, conventions and the like a lot of people are holding on buying a WiiU until smash bros and a proper Zelda and I imagine many will see Mario kart 8 as the jumping on point, I'm not saying WiiU will become a huge success and become a contender, that ship has sailed I do think things will pick up though
 

10k

Banned
Yep killing off the console that early that it doesn't even see the zelda thats already in development will sure do wonders for its image to the fans that bought the wii u.
Read the post again. I said release all those games for Wii U but also make a new console version of Zelda (such as Twilight Princess for GameCube and Wii).
 

Ambitious

Member
Barely sold a million on hundred million PS360 consoles, let's see how much it'll sell on 6 million WiiUs.

I believe Bayonetta 2 might sell better than expected, as all the buzz and outrage about its exclusivity certainly must have drawn the attention of a lot of people (who might not have played the original). But of course, the total sales will nevertheless be terrible.
 
Apple's entering the same industry soon, they've got iwatches planned out this year that can do all the QoL things that every other company has been carving out right now in the market. Remember that Apple does not enter a new market unless they are 100% sure they have a winning formula. There's no doubt that even with the worst projections, due to Apple's popularity through the world. They will no doubt be the "iphone" of the industry and carve out a huge chunk.

The irony here is that Nintendo has clearly taken a lot of inspiration from Apple and yet has not implemented any of the modern lessons you could learn by observing them.
 

wsippel

Banned
Common sense. Look at the market that already exists for QOL tech, take a look at what's coming, and add to that Apple, Google, Samsung, and everyone else coming into this space in a big way. I don't trust Nintendo hardware designers to be able to compete on this level, and I don't trust Iwata to sign off on the right product and strategy.

Iwata is steering his storm battered ship straight into the Bermuda Triangle.
We don't know what the QoL platform is. QoL means nothing in itself. It could be anything. It doesn't matter what Apple, Google or Samsung do, because there's no way to tell if what Nintendo plans to do is even remotely similar. It could be AAL. Apple doesn't do AAL, Google is researching AAL but doesn't have any products, Samsung might or might not be working on AAL. And even AAL itself is a huge and diverse market with many completely different products, including home automation, communication, surveillance, digital assistants, robotics and a billion other things.
 
So then how can you claim it will be a strong seller? How does one reach that conclusion? MK, 3D world, Smash are strong sellers. Zelda may also be a strong seller. X is not.

Lets say it comes out in Q1 2015. Lets say Nintendo meets projections so there are 9 million wiiu's.
But you can claim it isnt. Lol hypocrisy to the MAX..
 

nikatapi

Member
I can't find it anymore. I remember it was posted on GAF a few months ago, but it was a short off-topic discussion in some huge thread.

I wonder what Iwata wanted to do, and in what degree the board changed the direction of the console.

Hopefully the new unified approach to software-architectures that was mentioned will provide a better way to deliver a homogenous "nintendo experience" in terms of OS and online account management. They need a consumer friendly user interface, unified between the console and the handheld system, that combines the best of the two worlds.
 
I'm fairly optimistic Nintendo can recover from this and WiiU will surpass its projected sales from what I hear at gamestop's, conventions and the like a lot of people are holding on buying a WiiU until smash bros and a proper Zelda and I imagine many will see Mario kart 8 as the jumping on point, I'm not saying WiiU will become a huge success and become a contender, that ship has sailed I do think things will pick up though

I think they'll manage their projected goals, but not by much.
 
It's not clear to me to what extent they impaired Inventory if it was that small a loss. Wouldn't they need to explicitly disclose a significant impairment?
Yeah, it's hard to tell. I think we were estimating something like 6M Wii Us in inventory.

Tales from my ass inventory -> cost of sales: 310K * 300 + 590K *130 => ~17B yen
Change in inventory balance ~18B yen??
This will probably go ignored, even by news sites.
What exactly are you saying is being ignored? The company would still be operating at a loss without those increased expenses. Those expenses may have been necessary to simply achieve the sales they have achieved.

It's not some sort of book value charge that needs excessive explanation. It's operating expense.
 

nampad

Member
Thanks! :) Will be an interesting weekend with an bunch of "Nintendo is doomed" threads.

Don't worry, it's financial report season and every platform holder has its worries right now. There will be enough Vita is dead and Xbone too far behind PS4 posts to even everything out.
 
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