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Nintendo FY14 Q1: 0.82M 3DS, 0.51M Wii U, MK8 2.82M shipped, 10 billion yen loss

Chindogg

Member
The GameCube wasn't doing nearly as bad as the Wii U. Also keep in mind that software budgets are much larger these days.

Don't forget the economy also collapsed and people aren't spending as much. And the fact that gaming in general is conditioned to dirt cheap pricing now.
 

BlackJace

Member
Probably a lame comparison, but I imagine Amiibo's success can be estimated by looking at how fast the Nintendo toys sell out whenever they're available at McDonald's, Burger King, etc.

It also depends on availability. Hopefully they get smart and get the figurines in every store they can. One or two chains ain't gonna cut it.
 

JoeM86

Member
MK8 will surely have some legs, But historically, NSMB games also had huge legs. That didn't help the Wii U either. I'm not sure where the MK8 bundle is selling out though, checked all European Amazon websites and it's available immediately.

Mario Maker should be interesting. Are people really interested in even more Mario 2D action? Will they like to create their own levels, which cannot even be shared online? Nintendo has been burned twice with user created content: once with Wario Ware DIY and another time with Jam with the Band - both games lacked sales and thus user created content.

Splatoon is a big wild card, which will be a big failure unless it receives some marketing. Games such as Zelda, Xenoblade, or even Starfox are most likely going to sell to the audience that already own the Wii U, if Mario Kart 8 is any indication.

I thought it was confirmed that Mario Maker's levels can be shared online.
 
The Wii U is a failure in marketing, most assuredly. But not the deeply flawed understanding of what "marketing" encompasses, that seems to be limited to "advertising" that's oft perpetuated on here.
 

Mpl90

Two copies sold? That's not a bomb guys, stop trolling!!!
Its interesting that you bring up word of mouth. When Wii U launched there were several people either saying it was an add on to the Wii. As months progressed, that sentiment continued as well as hearing from the core that the Wii U was dead and Nintendo was going to replace it soon. Even today I still hear these two sentiments when I walk into Gamestops and Best Buys, from employees even.

The word of mouth on the Wii U is still pretty awful, and while its not the end all be all reason why its failing, its pretty clear that public opinion doesn't understand the strengths of the console.

On a side note, has there been one non-cross platform game to really be successful on either XBone or PS4? I'm asking because I have a theory but don't want to extrapolate on it until I'm certain of a few things.



Eeeh, people were bagging on Wii U a month after launch. To say you would be laughed at is a bit of a stretch. It is funny how you mention how many bash Vita, yet you fail to mention that those who bash 3DS want the successor to be very similar to what Vita offers right now. Would Nintendo software really be the key to a Vita-like success? Very doubtful considering no one wants to pay over $200 for a handheld.

What do you mean? That non cross-gen games could not be successes on PS4 and Xbox One?
 
Don't forget the economy also collapsed and people aren't spending as much. And the fact that gaming in general is conditioned to dirt cheap pricing now.

Wii had the best ever month for any console in November 2009. I don't think the economy is the real issue - it's the misguided approach to selling in this economy that's at issue.
 

Freeman

Banned
I suppose I'm taking it a little bit for granted that they're going to pull a DS/Wii, not in terms of mass market success but in terms of realigning what exactly is the point of their products. They seem to have lost pretty much all of their own lessons from DS/Wii this time around due to hubris, but it's hard to miss the results.
Why would a 3DS successor do any better? That is what I like to know. The touch and motion control "gimmicks" aren't something you come up with at will. Nintendo core issues are not something they'll fix easily. The market is completely different now fro portables for Nintendo to come up with something that would have a similar effect.

Consoles are less affected by smartphones because their games have a production value that isn't anywhere else, the same doesn't apply to portables, where they are pretty much direct competition.

Nintendo is terrible at learning from their mistakes or successes. They didn't build over the Wii motion control, they didn't try to fix what kept third-partys away and for as weak as the WiiU is it isn't even cheap. Their beat on Dual screen was completely off, I don't know where they got that from(maybe the DS?)and why it couldn't be done using their portable device. There is also 3D, never bet on 3D.
 
Agreed. I don't think Amiibo will end up all that popular. The market is already dominated by Skylanders and Disney Infinity, so you have the whole me-too factor limiting potential sales.

And then you're right, the technology won't be properly utilised if it's just an afterthought for two Nintendo IPs. I'm thinking, worst case scenario, they'll end up as much of a failure as AR Cards were for the 3DS...just wasted technology. We'll see.

I do see two major advantages over the competition:

- Nintendo's IPs are well-known and respected and can therefore create a single sustainable line of products. Aka they won't need to fall into the Skylanders trap of reinventing itself every year (Swap-Force, Trap-Team, Giants, etc...) Honestly Skylanders isn't exactly creating single memorable characters, instead opting for the shotgun approach. Something that Nintendo can use to their advantage.

- Nintendo has a multitude of franchises and can leverage these to create a holistic Amiibo platform (instead of being tied down to a single game.) This is where Disney, with their well known and respected franchises, will falter, because they will only be able to give you one experience at a time. They've tried to incorporate every experience into one package (hence the title Infinity) but unfortunately consumer attention is much more fleeting. So they'll opt to continue to push relevant franchises into Infinity to keep the momentum moving forward (such as the latest Marvel Infinity line.)

Either way, you need to create a dedicated baseline by showcasing a single compelling experience. Maybe they'll have it, because surely their product innovation folks will identify the need for it on Day 1. I guess you can call me cautiously optimistic.
 
Probably a lame comparison, but I imagine Amiibo's success can be estimated by looking at how fast the Nintendo toys sell out whenever they're available at McDonald's, Burger King, etc.

It kind of is. You are selling fast food with a cheap toy and in the other a way more expensive toy.
 

Hiltz

Member
I wonder if Amiibo can be successful despite Wii U's continued poor hardware sales (with no system-seller software) as well as Amiibo not being as crucial to the core game experience because it is only unlocking non-essential content.
 
On a side note, has there been one non-cross platform game to really be successful on either XBone or PS4? I'm asking because I have a theory but don't want to extrapolate on it until I'm certain of a few things.

How successful do you want here? Also the fact that most of the bigger games that have released are cross platform makes commenting on the situation useless.
 
Well, I think they should have had a similar "Wii would like to play" like they did for the Wii. I mean, the Wii sold on Wii sports alone for the longest time and Nintendo Land can be worth it for a fun experience. I mean, both the Xbox One and the PS4 sold well when there were jack all, primarily because of both early adopters and strong advertisement. I think that now, this late in the cycle, a strong advertising campaign isn't going to achieve much, but having a series of advertisements for Hyrule Warriors, Smash Wii U, and Bayonetta 2 will go a long way of at least getting into people's heads. Having multiple commercials advertising different games will break the current setting of "Nintendo doesn't make any games."

Once again, I'm not saying that the hardware sales will suddenly jump up to Wii numbers, that is a pipe dream. I will say that it will help sales move out of dying mode and into better fields. Nintendo needs to keep this momentum going for it to get out of loss mode but there isn't a single solution that will solve it. Rather a multitude of solutions. The advertisement really is just the first step.

I think the mistake people make is putting the Wii u on equal footing to the ps4 and Xbone. Those systems are selling to completely different markets that Nintendo had zero resonance with at this point. Nobody is dropping call of duty or assassins creed to play Mario kart or splatoon. It's not an either or conflict with these types of consumers. Those systems sold because, despite popular belief on GAF, they DID have stuff that people wanted to play. Sony and to a lesser extent Microsoft did a good job of playing to their audiences. These audiences actually were intersted in games like Call of duty and AssCreed in hi-res, or the game streaming stuff, the downloadable titles, they marketed their products well to what is still a very viable market. Nintendo also does a good job of playing to their audience, the problem is their audience isn't viable anymore. You can't support a successful console on the backs of people that love Mario and Zelda anymore.
 

Chindogg

Member
Wii had the best ever month for any console in November 2009. I don't think the economy is the real issue - it's the misguided approach to selling in this economy that's at issue.

It was a $250 console where the competition was $300 and $600. That got the ball rolling, Wii Sports snowballed it out of control.

What do you mean? That non cross-gen games could not be successes on PS4 and Xbox One?

I'm curious if there's an actual current gen only title that's been a fair success on either XBone or PS4. It seems like despite amazing hardware sales, software's been kinda blah unless its cross gen titles.
 

Shiggy

Member
The desire to play MK8 exists where as the desire to play NSMBU is questionable, there is a clear difference between the too, I live in America and it was sold out on Amazon, Walmart and Gamestop yesterday. (on my phone atm so I'm not checking, but I believe they are waiting for August before replenishing shipments in any large amount.

The increase in hardware sales does not really show that new people are running to buy the system because of MK8. In fact, based on the sales of launch games, more people bought the Wii U to play NSMBU than MK8 at this point.

Amazon.com does not sell the Wii U from what I can see, but you are right about Walmart and Gamestop. This pretty much shows that retailers in the US underestimated demand for the bundle based on their previous experience with the Wii U hardware.


Also, Mario Maker will likely end up with online sharing, even if it is through miiverse, smash brawl had a map maker with a small online community for sharing stages, miiverse makes this type of sharing gain mass appeal.

Comments by Tezuka indicated that no online sharing was coming, I thought. Last i heard he was giving some rather stupid excuses for why they cannot do it ("only the most popular levels would be played").
 

espher

Member
I'm saying even from a self-interested point of view, it probably isn't a good thing.

Let's say I love Ferrarris. Should I be happy if Ferrarri announces they're going to give away Ferrarris for free tomorrow? Personally, I don't think I should be. Yes, I get a free Ferrarri tomorrow... but then no Ferrarris are ever made again, because a policy like that would put Ferrarri out of business within days.

I'm suggesting a long term outlook is better. Do you like Nintendo's products, generally? Then you probably don't want them to die. Even if that means making some choices that you might not like.

Some Ferrari enthusiasts may be worried that Ferrari might change to the point that they are no longer making Ferraris anymore, but something that is Ferrari in name only, in order to continue to exist.

I mean I'm not saying the alternative is better, but I find that's a reasonable concern. If the company is going to change to put out product you don't want, there's no real incentive to rally and push for the change.
 

brett2

Member
Why is everyone arguing about Amiibo? Who cares? With a Wii U installed base of under 7 million it simply can't move enough units to make a financial difference. This was just proven by Mario Kart 8.
 
Don't forget the economy also collapsed and people aren't spending as much. And the fact that gaming in general is conditioned to dirt cheap pricing now.

If I remember right 2009 is still the peak year of deticated gaming market. I really don't think economy has that much to do with spending on entertainment. If anything people want to escape reality during bad times.
 
It was a $250 console where the competition was $300 and $600. That got the ball rolling, Wii Sports snowballed it out of control.



I'm curious if there's an actual current gen only title that's been a fair success on either XBone or PS4. It seems like despite amazing hardware sales, software's been kinda blah unless its cross gen titles.

Come back when there is actually a large selection of non cross gen games to play on the systems. Assassin's Creed Unity will be a big example of whether or not software only on PS4/Bone can do very well. If you are asking whether or not there has been a big breakout
 

JoeM86

Member
Comments by Tezuka indicated that no online sharing was coming, I thought. Last i heard he was giving some rather stupid excuses for why they cannot do it ("only the most popular levels would be played").

He said that about ranking and that it's to be a challenge to get it so levels get seen, not that it wasn't coming with that as an excuse.
 
Many business analysts are holding onto Amiibo as the instrument of a major turn-around for Nintendo's financials. My fear is, however, that Nintendo is falling into the same pitfall it did with the Wii U: aka doesn't have a single dedicated and compelling use-case for the technology.

When you talk about the "toys to life" category, you use terms like 'Disney Infinity' and 'Skylanders'; both of these represent dedicated game experiences that utilize these figurines. Nintendo on the other hand seems to be approaching the category by utilizing their existing software franchises to push their products.

The problem with this is obvious, the known games that will leverage Amiibo: Smash and Mario Kart; are not necessary or even intended to use with an NFC figurine. They'll be an afterthought in the great scheme of things. So as it stands you're only going to be pushing the share of wallet of your existing customers instead of attracting net new ones.

It is concerning that there isn't a dedicated 'Nintendo [whatever IP]' that will showcase Amiibo through and through (I say this because there was a relative Amiibo software no-show at E32014.) Is it coming? Probably, but if they intend to release these things by the end of CY2014 we're likely to see them only piggy-back existing franchises.

Anyone else have a similar line of thinking?
This. I am a hardcore fan but I don't kow why should I buy more than one Amiibo.
 
It was a $250 console where the competition was $300 and $600. That got the ball rolling, Wii Sports snowballed it out of control.

Wii had stopped selling out in 2009, but started selling out again in 2009 with the release of NSMBWii. The industry as a whole was also way stronger in 2006-2009 than it ever was before, which couldn't have had anything to do with competition since cannibalizing your competitors' sales can't account for that kind of growth. It wasn't about price wars - it was about Nintendo making the kinds of games that people actually found compelling.
 

geordiemp

Member
Hard to believe Iwata's approval rating went up.

I think QOL failing will be the last straw for investors.

What is QOL - I know what the abbreviation means, but is it just vapour ware to keep shareholders off their back, or is it an actual piece of hardware or software code.

I am being serious.
 
I do see two major advantages over the competition:

- Nintendo's IPs are well-known and respected and can therefore create a single sustainable line of products. Aka they won't need to fall into the Skylanders trap of reinventing itself every year (Swap-Force, Trap-Team, Giants, etc...) Honestly Skylanders isn't exactly creating single memorable characters, instead opting for the shotgun approach. Something that Nintendo can use to their advantage.

.

Eh, I have news for you: Even the most memorable characters need to have a new take at time at time. Toys cycles are also pretty different.
 
Splatoon is a big wild card, which will be a big failure unless it receives some marketing.

Splatoon is going to be a failure with or without marketing. I think the idea is universally praised, but it is not going to get any traction regardless. The best it can hope to do is become Okami and not sell horribly and gain a cult following. Don't mean to be so forward on the subject, but this game will get no traction in the current gaming landscape.
 

BlackJace

Member
What is QOL - I know what the abbreviation means, but is it just vapour ware to keep shareholders off their back, or is it an actual piece of hardware or software code.

I am being serious.

For now, it seems to be an attempt to combine gaming with health and fitness ambitions. How exactly they plan to do that is still a complete mystery.
 

AniHawk

Member
Vita gets criticized all the time, I think most people can clearly see how poorly Sony handled it and all the mistakes that were made and Sony's insistence in not fixing them.

When it comes to Nintendo its always different, if you talk about Sony getting out of the portable market everyone thinks its a reasonable thing to think, you suggest Nintendo moving out of the console market and you are insane. One year ago most people would laugh at you if you pointed out how poorly the WiiU would do.

i don't think it's absurd to get out of the console business, but the argument isn't that nintendo leaves the console business, rather that they stay in the console business and make games for other people. i've almost never seen people recommend sony get out of the handheld business to support nintendo's handheld line, other than trying to prove a point of how that's similarly absurd.
 

Pastry

Banned
I do see two major advantages over the competition:

- Nintendo's IPs are well-known and respected and can therefore create a single sustainable line of products. Aka they won't need to fall into the Skylanders trap of reinventing itself every year (Swap-Force, Trap-Team, Giants, etc...) Honestly Skylanders isn't exactly creating single memorable characters, instead opting for the shotgun approach. Something that Nintendo can use to their advantage.

- Nintendo has a multitude of franchises and can leverage these to create a holistic Amiibo platform (instead of being tied down to a single game.) This is where Disney, with their well known and respected franchises, will falter, because they will only be able to give you one experience at a time. They've tried to incorporate every experience into one package (hence the title Infinity) but unfortunately consumer attention is much more fleeting. So they'll opt to continue to push relevant franchises into Infinity to keep the momentum moving forward (such as the latest Marvel Infinity line.)

Either way, you need to create a dedicated baseline by showcasing a single compelling experience. Maybe they'll have it, because surely their product innovation folks will identify the need for it on Day 1. I guess you can call me cautiously optimistic.

You admit that consumer attention is fleeting but then criticize Skylanders and Infinity for acknowledging that attention span and taking advantage of it. You assume that Nintendo is somehow immune to the ADD nature of consumers. Nintendo will fail with amiibo if they do not follow the model established by Skylanders and Infinity. Consumers want new lines of toys coming out, they want to see toys for new and relevant franchises. I find fault with just about everything you wrote up there, if Nintendo follows your advice amiibo will crash and burn.
 

Shiggy

Member
He said that about ranking and that it's to be a challenge to get it so levels get seen, not that it wasn't coming with that as an excuse.

Oh I see, they simply haven't made a definite commitment to online sharing yet. Hopefully that's not a sign that it's not coming.
 

watershed

Banned
Amiibo is a smart gamble by Nintendo and the next big indicator we will have to see whether or not Nintendo is making the right decisions going forward. But i think Amiibo will have some serious challenges as well. One being that in order to use them, you have to own either a Wii U or 3ds. Unless I'm mistaken, Skylanders and the Disney thing are still doing well on the original Wii and are available on other consoles. Reggie has touted the percentage of figurine marketshare Nintendo has, but that number isn't exclusive to the Wii U.
 
I would hope even Nintendo is not dumb enough to release a level creator in the year 2015 without online sharing. If so, I would lose all faith. It's bad enough the lack of graphic options and physics they are giving.
 

Freeman

Banned
Amiibos won't solve anything long term, at best if will take Nintendo's attention away from fixing the real problems.

i don't think it's absurd to get out of the console business, but the argument isn't that nintendo leaves the console business, rather that they stay in the console business and make games for other people. i've almost never seen people recommend sony get out of the handheld business to support nintendo's handheld line, other than trying to prove a point of how that's similarly absurd.

Unlikely that they would support the 3DS because it isn't the dominant platform, Sony pretty much like any other company already has a mobile strategy.
 
I think their design philosophy with consoles is flawed. I'm perfectly fine with them being unique and trying innovative ideas. However, alienating third parties by shipping underpowered hardware can't do in this day and age. As unfortunate as it is, a console needs support from AAA publishers like Ubisoft, Activision, and EA if it wants to even attempt at catering to the mass market. The Wii U attempted to cater to both markets but failed at both. The casual market simply vanished in the advent of mobile, but that's another discussion. The Third Parties left because nobody bought the initial software they put out Why? Because the people buying Wii Us around launch, and still to this day, aren't the core market. They're either Nintendo fans, who are mostly interested in Nintendo software, and people who already own another console that can already play the better versions of those third party titles.

I can agree with the necessity of third parties, but I think the idea of that the hardware is underpowered is kinda questionable. While not as powerful as the other two consoles, it's a perfectly capable console that a can produce some wonders that also includes visually. But that's not why I question the argument of being underpowered. What drives me to questioning it is asking, "How much power is necessary?" and "How will that power be focused?" along with things like Steam and Personal Computers growing more relevant in that space not to mention dev costs and time, and so many companies shutting down unexpectedly I wouldn't exactly bet the farm on hardware power. What would be more beneficial direction for both the industry and Nintendo ya know? Something I do feel is sincerely lacking however is their online gaming ecosystem. They should aim to bring both audiences together both through local and online.

I've been thinking about what I might want to see them do in the future, and I've kinda been thinking of a scenario where the output is focused to bring people together socially through gaming. The original title of Project Cafe, still rings through my mind. Imagining various players with Gamepads and other Wii accessories in an area connecting to a more powerful Wii U as a hub and being able to play together yet separately is something I've had in mind for a while.

But besides that little fantasy, Nintendo's in a state of catching up. While they embrace towards online gaming was no where near as strong as the other two companies, they are currently in a situation where they may feel that it is necessary to crate their own ecosystem. Especially if you consider the fact that Sony and Microsoft has already done so. Not for a "me too" factor, but for the sake of bringing people together in order to attract new audiences with their services. This can be seen with their unique outreach towards players through Miiverse, Streams (Direct/Treehouse) and various other things. While still in a rough spot the Wii U is holding up surprisingly well considered that Nintendo is damn near the only one supporting it. From an isolated standpoint anyway.

I'd guess majority of losses may be from having to establish themselves and move that money around for outside interests.
 
What is QOL - I know what the abbreviation means, but is it just vapour ware to keep shareholders off their back, or is it an actual piece of hardware or software code.

I am being serious.

No one knows and that's what's so funny about people continually bringing it up.
 
i don't think it's absurd to get out of the console business, but the argument isn't that nintendo leaves the console business, rather that they stay in the console business and make games for other people. i've almost never seen people recommend sony get out of the handheld business to support nintendo's handheld line, other than trying to prove a point of how that's similarly absurd.
I imagine this is due to Sony being a conglomerate, while Nintendo are at present still essentially solely a video game company (although I'm aware that they still make those cards). Similarly, I don't expect Microsoft would remain a video game publisher without a video game platform.

If Nintendo had other lines of business, then you'd probably see more suggestion of them exiting entirely. If being a handheld only company was viable, and/or the handheld market wasn't in systemic decline, you'd probably see more suggestion of that as well. The latter is possible but would probably require a massive reduction in their costs.
 
So things are better, but still not really good. About as expected, I suppose. I sincerely hope the Wii U picks up considerably over the next year or so - goodness knows Nintendo's putting more effort into making good games for it than any other company in the business.

It's a sad day indeed when making great games isn't enough to sell your console. At least the gamers still get games, I guess.
 

z0m3le

Banned
The increase in hardware sales does not really show that new people are running to buy the system because of MK8. In fact, based on the sales of launch games, more people bought the Wii U to play NSMBU than MK8 at this point.

Amazon.com does not sell the Wii U from what I can see, but you are right about Walmart and Gamestop. This pretty much shows that retailers in the US underestimated demand for the bundle based on their previous experience with the Wii U hardware.




Comments by Tezuka indicated that no online sharing was coming, I thought. Last i heard he was giving some rather stupid excuses for why they cannot do it ("only the most popular levels would be played").

Wii U selling 318% better than last year or nearly double any other non holiday month, following MK8's release, of which most of its influence sits in the month of June, shows no signs of a system seller? Looks like a slow burner uptick rather than a titan "fall", Smash honestly has as much a potential to be a system seller as Mario Kart, because Mario Kart benefits from a casual market that has left Wii U. This is why melee out sold double dash on the gamecube.
 
If Nintendo thinks that Amiibo is more than a way of squeezing more cash out of their existing fanbase, they're in for a very rude awakening.

They haven't clearly set out what their sales expectations are AFAIK, so to be fair, it's possible that that's not the case.
 

QaaQer

Member
nintendo publishes around 20-24 games in a given year across the 2-4 systems they'll support at any given moment (OH 2012 WHAT A WONDROUS TIME). when there are fewer platforms, or platforms they're focusing on less, those tend to suffer as far as releases go. see the gba from 2001-2007, the gc from 2005-2006, the ds from 2008-2012, the 3ds's 2014, and so on and so forth. it takes so much time and money to train everyone on two new pieces of hardware every 4 years or so and they have to keep hiring more people and take more time to do it whenever it happens.

quality is subjective. i'd argue it's been pretty consistently good since 2004, the output on the ds notwithstanding. quantity is fairly easily measured, and as you point out the lack of third-party releases makes these platforms look particularly barren in terms of lineup.

ideally a multi-device approach using the same library would ease the learning curve (so there's only one platform to get to know), reduce gaps in release dates, and allow nintendo to come up with unique and profitable hardware that they see fit. for instance, imagine if the wii u this year had its current releases plus what the 3ds had. it would look like this:

february:
bravely default
dkctf

march:
yoshi's new island

april:
disney magical world

may:
mario kart 8
mario golf: world tour
kirby triple deluxe

june:
tomodachi life


...instead of this:

february:
dkc tf

may:
mario kart 8

it would also prevent similar games from coming out somewhat close to one another, like nsmb2 and nsmbu, two very similar smash bros. games (which seems increasingly like a bad idea), or even super mario 3d land and super mario 3d world. there would be a little more breathing room and time for experimentation.

ideally, of course.

Again:

This is all well and good for Nintendo first party pipeline, but it does zero to attract 3rd parties with hardware pushing software. Nintendo's shared architecture is pretty much guaranteed to be weird, non-standard, and low spec'd. For a company to make a big console title for this type of Nintendo platform would require massive effort in comparison to porting it between PC/X1/PS4.

Not including 3rd parties in their hardware designs is slow-motion suicide. As is not confronting the death of the non-Japanese gaming handheld market, btw.
 

Dire

Member
Amazing numbers. They're practically break-even while supporting a console that has done very poorly. A 100million yen net loss = $1million USD loss.

I don't actually understand how they can be doing this well while the Wii U is tanking. If this was a more diverse company like Microsoft I'd assume they were engaging in accounting shenanigans and shoveling the losses to different divisions.
 

Chindogg

Member
Amazing numbers. They're practically break-even while supporting a console that has done very poorly. A 100million yen net loss = $1million USD loss.

I don't actually understand how they can be doing this well while the Wii U is tanking. If this was a more diverse company like Microsoft I'd assume they were engaging in accounting shenanigans and shoveling the losses to different divisions.

Edit: Misread the topic. My mistake!
 
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