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Nintendo to cut summer bonuses by 20 percent : Nikkei

Graphics and improved ai and animation due to the stronger power of the systems has always been a selling point from generation to generation. It happened again this generation when people moved from the PS2 and Xbox to the 360 and PS3. The only thing holding it back from destroying PS2 level numbers is the price. Being at $249 and $199 6 years into a generation is ridiculous. The wii was an anomoly as it offered a gameplay experience unmatched on other consoles due to motion controls. It also was at a much lower price point than the competition. Improved graphics and other things like AI and animation being improved will sell the next generation of consoles just like it has every generation.
Graphics and improved AI have never been sole motivators to purchase a new system. Graphics much like different input devices are just an avenue in offering new and different games. Ultimately people buy a system for the games; improved graphics or different control schemes are just a means to offering new experiences. Obviously other key factors such as launch timing, price, system features, design, etc. are also important variables but games are the first and foremost important thing when selling a new console.

Personally, I'm not going to make much in terms of predictions because there are so many unknown variables in regards to Wii U and Sony/Microsoft's offerings. On a personal level I still have many issues with the Wii U and I don't intend on purchasing the system unless they show more interesting/compelling games for the future. However, I will say that I believe once again(as what happened with the Wii, DS, Kinect, and even games such as Resident Evil Operation Racoon City) GAF's kneejerk reaction regarding the Wii U is missing key variables and those forewarning hard times for Nintendo should probably be more open minded to things. Some member's grim prospect of the Wii U seems disillusioned when during the launch window it will have sequels to 20+ Million software which handidly outsells any 3rd or 1st first party exclusive Microsoft or Sony has ever had. On top of that they have one of the biggest 3rd party franchises(did MH overtake DQ?) in Japan releasing on Wii U.

I'm not a fortune teller and Nintendo has a lot of explaining to still do(Price, Online, More Games!!, etc.) but I'm not entirely convinced that the Wii U will underperform quite like how a lot of members on GAF seem to do.
 

Dalthien

Member
ds sales were so bad that nintendo bundled gba and ds sales together for a few months in 2005. one month we actually got ds standalone numbers: 59k.

Yeah, but that was after 6 months on the market. Vita is already dangerously close to that number after just 3 months. Give Vita the full 6 months, and it might just go lower yet. (Not to mention that the DS's first 6 months were far better than Vita's first 6 months will be in all 3 major territories.)
 
Hence, Wii U may also sell way less than Wii but in the meanwhile being a healthier ecosystem for software, like 360 e PS3 are.
He was being sarcastic. The Wii had a pretty good attach rate(at least for the first few years, I'm not sure how badly things dropped off in 2010). Most discredited it because of the Wii Sports bundle and the Wii Play bundle.
 
Nintendo better give us a unified online system with gamer tags (not stupid ass friend codes) or the wiiU will be a gigantic disappointment for me. It's 2012 motherfuckers!
 

Danthrax

Batteries the CRISIS!
Wonder if the horrible foreign exchange rate has played a significant role in them leaving NoA and NoE out to dry.

That actually makes a lot of sense. It may explain why some releases were held back — or almost held back, as in Xenoblade's case, or technically held back save a third party's efforts, as in Last Story's case.
 

Busty

Banned
I'm not a fortune teller and Nintendo has a lot of explaining to still do(Price, Online, More Games!!, etc.) but I'm not entirely convinced that the Wii U will underperform quite like how a lot of members on GAF seem to do.

I just cannot see who the market for the WiiU is. Is it owners of the original Wii who gobbled up Nintendo's first party stuff? Is it the mass market that bought the Wii and Wii Sports?

I was a HUGE Gamecube fan and even I think that the WiiU has 'Gamecube 2' written all over it.

But in saying that I thought the Kinect would be a massive disaster for MS for so what the fuck do I know?
 

Leonsito

Member
No Bonus?

de4bc_the-fall-of-lane-pryce.jpg
 
We really need a lot of questions answering about Wii U before we can judge how we think its going to do: more information on online, the digital offerings at launch, why some games we know about haven't been announced yet etc. I think the Summer tours they are planning will give us a better idea too. All predictions are premature ATM. If their terrible e3 was to extrapolate itself into a terrible launch, it would be obvious, but I suspect we hear a lot more between now and November.

Regarding the bonuses, the "beatings will continue until morale improves" post made me laugh. Hopefully they are telling their staff a good launch and good software means reinstated bonuses or higher bonuses.
 
I don't see the Wii U catching on like the Wii, but I would say that Nintendo sees the Wii U as a vehicle to get young players - really young, like ages 3-12 - to have a system they can play while mommy or daddy or babysitter watches television.

I say this because iPads are really catching on with young children, but there has to be a whole slew of parents unwilling / unable to get their children such an expensive device. Wii U, marketed as an iPad alternative for their kiddies, will get parents' attention. That's the only way I see this thing finding success.
 
I don't see the Wii U catching on like the Wii, but I would say that Nintendo sees the Wii U as a vehicle to get young players - really young, like ages 3-12 - to have a system they can play while mommy or daddy or babysitter watches television.

I say this because iPads are really catching on with young children, but there has to be a whole slew of parents unwilling / unable to get their children such an expensive device. Wii U, marketed as an iPad alternative for their kiddies, will get parents' attention. That's the only way I see this thing finding success.

That's a good point. I can see also Netflix as a way to bring this idea: a second TV for kids while parents watching Oprah.
 

z0m3le

Banned

http://www.gamesradar.com/nintendo-doomed-not-likely-just-take-look-how-much-money-its-got-bank/

Nintendo is sitting on $10 Billion USD, has $6 Billion in assets not including IPs, and none of that is counted in the companies stock report you linked.

So the answer to the quoted person is closer to $30 billion, in fact, Nintendo could buy itself out of public shares and go private if it wanted to, and there isn't a whole lot of top tier companies that can do that.

MS was actually throwing around that very idea, so they can pursue unique radical ideas, just thought it was interesting to point out. (MS has MUCH MUCH more money btw)
 

redcrayon

Member
For a traditional Japanese company, think of bonuses the way Westerners working in the service industry think of tips: basically part of the salary (which would be an underpaid wage without them). Just as 15% is standard and you never tip zero unless there was a real problem, in Japan a small bonus is still given out unless the company is really in dire straits. Typically you get 1/15 or 1/16 of you annual pay each month, with the rest at bonus time.

(My somewhat-Westernized company moved off the bonus system a few years ago, paying us 1/12 of our annual pay every month, but they still hand out a token "incentive bonus" of ¥100,000 or so once a year.)

'Western' is always a bit of a generalisation- in the UK tips are about 10%, and are absolutely not obligatory- most proper restaurants will add it to the bill (clearly marked), but a pub or a cafe wouldn't. They get higher (and it becomes more of a social faux-pas to not leave a tip in a small cafe etc) in mainland Europe, and then seem to be obligatory in the US.

This isn't just the UK being cheap- the price of a reasonable glass of wine and a sandwich here is probably about twice what you would pay for the equivalent lunch in France.
 

Danthrax

Batteries the CRISIS!
'Western' is always a bit of a generalisation- in the UK tips are about 10%, and are absolutely not obligatory- most proper restaurants will add it to the bill, but a pub or a cafe wouldn't. They get higher (and it becomes more of a social faux-pas to not leave a tip in a small cafe etc) in mainland Europe, and then seem to be obligatory in the US.

They pretty much are. If you go back to the same restaurant and the waitress remembers that you didn't leave a tip, your food will be spat in (or worse) before it's served to you.
 

redcrayon

Member
I was very generous the last time I was a tourist in NY, couldn't believe the size of the portions, my friends and i were struggling to finish stuff off the kids menu :)

/apologies for going off topic
 

mujun

Member
Can someone explain with some certainty exactly what sort of financial situation Nintendo is in?

We've got posts in some threads saying that Nintendo would have to lose some like 300 million a year for 60 years to use up their assets and then people like Pachter (and news like the news in this thread) saying that if Nintendo don't start turning it around within the next couple of years that they'll be up shit creek.
 

Dunlop

Member
Sad, but they seem to be betting almost entirely on Mario to carry them through (and Brain Training and Wii Fit U) to carry them through until the second wave of Wii U titles. Let's hope Mario doesn't suffer franchise fatigue!

This is almost always the case for Nintendo systems, I'm pretty tired of Mario games (therefore Nintendo systems) but it has worked for over 2 decades for them so don't see why it will be any different now.

Why they will always have that Mario legion of consumers the big question is will the "casuals" upgrade their Wii's to the Wii-U
 

Celine

Member
Can someone explain with some certainty exactly what sort of financial situation Nintendo is in?

We've got posts in some threads saying that Nintendo would have to lose some like 300 million a year for 60 years to use up their assets and then people like Pachter (and news like the news in this thread) saying that if Nintendo don't start turning it around within the next couple of years that they'll be up shit creek.
Nintendo is filthy rich because how Yamauchi built Nintendo ( good profits even in hard time/relatively low costs ).
Wii/DS success boost even more Nintendo cash reserve and let Nintendo expand the company headcount.

The question about Nintendo future however hinge on if they can bis the Wii/DS phenomenon (unlikely) and overall if the traditional console business model will be still relevant in the coming years.
Nintendo stocks tanked over the past few years because it's unlikely to expect explosive growth from Nintendo (or the traditional console based business if you ask me).

Nintendo though is very likely to turn a profit on 3DS and WiiU.
 

redcrayon

Member
I think a lot of it's psychological.

Nintendo has the advantage of having a huge amount of cash in the bank and zero debt, sure, they could tick along for a decade or two and not go under. The problem is that if they start digging into it while making a loss year after year, and shareholder confidence in their leadership dies, it becomes a snowball of despair- they are only involved in the games industry, and if they aren't able to compete in it, will end up in real trouble down the line.

That's the worst case scenario though- most rational people realise that the DS and Wii were lightning in a bottle, the right product at the right time, and expecting their successors to remain as wildly popular when the audience for touch screens, motion controls and tablets now have a wide range of options from companies with better tech and more money seems to be expecting a bit much from even the big N. This is why they don't bet on cutting-edge hardware- if their business model is designed for long-range continued existence of the company through continued creative use of profitable tech and unique IP, it's hardly a bad one, no matter how much dedicated gamers might want cutting edge stuff. If the company still exists, then there's every chance that their designers can come up with something cheap AND magic again a few years (or even a decade) down the line. If they bet everything on competing with Microsoft and Apple via a cutting edge console and the hugely expensive online infrastructure that surrounds it and lose, they won't have that opportunity again.

I like the idea upthread, of a future Nintendo machine that is a cross between a handheld and a console for the future- people are used to carrying around iPads and Kindles now, the small form factor isn't quite as important as it used to be, and as both kids and adults become more used to having tablets with reasonable power expectations than portable consoles, maybe that's the way forward.
 
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