• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

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

Coolwhip

Banned
Their games would change considerably if they ever went 3rd party. Currently, their games are designed to sell hardware and fill holes in the platform portfolio. It's fine if a game isn't profitable as long as it manages to drive the installed base a little. As a 3rd party, they'd essentially have to drop everything that isn't Mario, Mario Kart and Zelda, and release entries in those franchises more regularly. And I'm not sure anybody would want yearly Zelda installments by two alternating teams and Mario Kart 2015, 2016, 2017...

I heard that argument before, but is that really true? If Nintendo only makes software they need every game to be profitable, that's true. But what games that they made in the last 10 year wouldn't they have made then?
 

KingSnake

The Birthday Skeleton
Their games would change considerably if they ever went 3rd party. Currently, their games are designed to sell hardware and fill holes in the platform portfolio. It's fine if a game isn't profitable as long as it manages to drive the installed base a little. As a 3rd party, they'd essentially have to drop everything that isn't Mario, Mario Kart and Zelda, and release entries in those franchises more regularly. And I'm not sure anybody would want yearly Zelda installments by two alternating teams and Mario Kart 2015, 2016, 2017...

It is so obvious, you just need to look at EA launch schedule from their financial report. Or take the SEGA one. People are still going nuts about Metroid. Based on the sale performance Metroid won't probably exist for a 3rd party Nintendo.
 

Kosma

Banned
So people are afraid that Nintendo would only make Mario and Zelda if they went 3rd party? Isn't this already what they are doing?

They already dropped everything that wasn't HUGE. No F-Zero, no Metroid, no Pilotwings...

Maybe going 3rd would actually bring some new IP to the table.
 

Chindogg

Member
Nintendo is NOT Sega.

It will be if you gut the company to just being development teams.

Seriously, how daft can some of you be? You think just cutting such a significant part of the company, where the majority of their capital lies, is just going to be just fine for investors? The company stock will sink like a rock. You like Pikmin? Too fucking bad, that series doesn't make money so its cut. You want Metroid, F-Zero, Waverace? Good luck.

A 3rd Party Nintendo Becomes A Mario/Zelda/Pokemon Factory.
 

Mandoric

Banned
It is so obvious, you just need to look at EA launch schedule from their financial report. Or take the SEGA one. People are still going nuts about Metroid. Based on the sale performance Metroid won't probably exist for a 3rd party Nintendo.

Metroid also doesn't exist at this point for a first-party Nintendo.
 

Coolwhip

Banned
It is so obvious, you just need to look at EA launch schedule from their financial report. Or take the SEGA one. People are still going nuts about Metroid. Based on the sale performance Metroid won't probably exist for a 3rd party Nintendo.

Nintendo LOST money on the Prime series?

It will be if you gut the company to just being development teams.

The departments that thought up Wii U and 3DS aren't exactly the shining force of Nintendo. The departments that made Mario 3D World, Pikmin 3 or Mario Kart 8 are.
 

Shiggy

Member
Tecmo-Koei is making it, not Nintendo, and it's not a cheap cash-in, it's lending a franchise to a third party to secure some kind of support.

Tecmo-Koei is developing it, but it's paid by Nintendo. And yeah, it's done to secure at least some kind of support. It's basically a 3rd party game on which the Zelda IP is slashed on so that it sells at least somewhat decently - and from the looks of the game the production values are extremely low. Cheap cash-in describes it pretty well imo. Just like Donkey Konga.
 
The reasons I listed are exaclty why

They launched a product that didn't give you a 350 dollar experience. It was literally worse that buying a 360/Ps3

One of the worst values available at the time and everyone knew it.

It launched at 300 dollars. 350 was for the version that came with Nintendoland
 
Just because Sega screwed it up, doesn't mean Nintendo would. I would love to see Nintendo as a software only company. I really think people want Nintendo games, but not a Nintendo console.

Mario, Kong, Zelda, Metroid, Kart, Smash, Party, Kirby, Pokemon would easily be enough to keep them profitable making games for PS4/XB1.

I would love to see Nintendo stay in the space

We need the competition but then again we now have so many new players

Apple, Amazon, Google....

But they dont have the creative commitment that Nintendo does. That said Nintendo would benefit heavily from picking up MOBILE talent.

If only to just have them on board to optimize the UI, unifiy the storefront, and make everything run smooth and pretty.
 

Metallix87

Member
I heard that argument before, but is that really true? If Nintendo only makes software they need every game to be profitable, that's true. But what games that they made in the last 10 year wouldn't they have made then?
Wonderful 101, Bayonetta 2, and Pikmin 3, for starters. Also, they'd be less likely to try new IP or revive old IP.

In all honesty, they'd likely become the Mario, Pokemon, Zelda, Smash Bros., and Mario Kart company.
 

KingSnake

The Birthday Skeleton
I heard that argument before, but is that really true? If Nintendo only makes software they need every game to be profitable, that's true. But what games that they made in the last 10 year wouldn't they have made then?

Pikmin 3 for once. Maybe even DKC:TF. They wouldn't have founded W101 and Bayo 2.
 
Not sure if that is a serious question.
legend-zelda-hyrule-warriors.png


And sure they are making it. It's going to release later this year.

Sure, let's use what's obviously very early footage of the game to judge its quality. The game doesn't even have a title yet.

And they aren't making it, Tecmo Koei is.

No, the Warrior games don't really appeal to the western market that much, so I can see why you wouldn't be too excited, but the Japanese love the Dynasty Warrior series. It's not a cash-in, it's a crossover that excites the Japanese fan base.
 

mclem

Member
I heard that argument before, but is that really true? If Nintendo only makes software they need every game to be profitable, that's true. But what games that they made in the last 10 year wouldn't they have made then?

One complexity is that you'd have to add in licensing fees draining the revenue from a given title. On the other hand, though, Microsoft and Sony would almost certainly fall over one another to give Nintendo a sweet deal if the opportunity arose.
 

Chindogg

Member
Nintendo LOST money on the Prime series?



The departments that thought up Wii U and 3DS aren't exactly the shining force of Nintendo. The departments that made Mario 3D World, Pikmin 3 or Mario Kart 8 are.

So you want to cut about 80% of Nintendo.

Yeah I'm so glad you're not running anything.
 

Metallix87

Member
Sure, let's use what's obviously very early footage of the game to judge its quality. The game doesn't even have a title yet.

And they aren't making it, Tecmo Koei is.

No, the Warrior games don't really appeal to the western market that much, so I can see why you wouldn't be too excited, but the Japanese love the Dynasty Warrior series. It's not a cash-in, it's a crossover that excites the Japanese fan base.
Bingo. I don't think picking on Hyrule Warriors is a good idea.
 

wsippel

Banned
Software architecture, not hardware architecture. Their future platform will almost certainly use ARM SoCs across the board.


I heard that argument before, but is that really true? If Nintendo only makes software they need every game to be profitable, that's true. But what games that they made in the last 10 year wouldn't they have made then?
Xenoblade, Reginleiv, Last Story, Pandora's Tower, Sin & Punishment 2, Fatal Frame, Endless Ocean, Another Code, probably even Metroid... All those games aren't really worth it from a financial standpoint and only serve to strengthen the portfolio on their platforms. They wouldn't develop X, either. Monolith would become one of their Zelda teams.
 

Coolwhip

Banned
Pikmin 3 wasn't profitable? Where are you guys getting those numbers. W101 was a bomb, but don't you think software only companies have failed projects?

As a software only company Nintendo could just release one Mario game every year and make money, sure. But they would want to make more money and expand their sales.
 
If they have 6m inventory and value them with $200 that would make 122b yen inventory of their 160b. That would leave only about 40b for all other stuff including all 3ds, 2ds, 3ds games, Wii U games and all accessory like chargers. That is less than before the Wii U was released. I doubt that number.
The rationale explained was that Iwata publicly stating a forecast of 9M required he have the capacity/inventory to deliver. Although I imagine production essentially halted upon revision.

3DS and 2DS inventory actually moves, or at least has been moving despite slowing down a lot now. I'm not sure how exactly they account for the cost of inventory of software - development + pressing discs + other associated costs of production?

And in years prior they had a wider product mix including Wii and NDS finished goods.

6M may be an overestimate, however, I don't think it's an unfounded assumption that a large chunk of inventory dollar value, probably a majority, is warehoused Wii Us.
 
Wonderful 101, Bayonetta 2, and Pikmin 3, for starters. Also, they'd be less likely to try new IP or revive old IP.

In all honesty, they'd likely become the Mario, Pokemon, Zelda, Smash Bros., and Mario Kart company.


So what you are saying is we wouldn't notice any change ?
 
Software architecture, not hardware architecture. Their future platform will almost certainly use ARM SoCs across the board.



Xenoblade, Reginleiv, Last Story, Pandora's Tower, Sin & Punishment 2, Fatal Frame, Endless Ocean, Another Code, probably even Metroid... All those games aren't really worth it from a financial standpoint and only serve to strengthen the portfolio on their platforms. They wouldn't develop X, either. Monolith would become one of their Zelda teams.

It sure would be nice if they have taken the Sony route with their ecosystem

Could you imagine if all of these games were available Digitally, on some steam like legacy sale?

You could just download games fast and easy and enjoy them upscaled on a Native emulator?
 
Are you going to acknowledge the reality here or continue to nitpick like 300 was a value.

Nitpick facts? Come on now at least you can say the real cost instead of trying to help your argument by saying the wrong price. The fact is that yes the game pad was an unnecessary addition to cost to the wii u just like the kinect is to the xone. Still doesn't mean that the wii u is doing terrible because it has 4 cables. Like I said list the real problems. Don't fudge the truth on the pricing either and maybe we could have an actual discussion.
 

jvm

Gamasutra.
Nintendo shipped 600K handhelds and 480K consoles in the past quarter. Just under 1.1 million systems total.

A year ago, same quarter, they shipped 1.45 million handhelds alone. Combined handhelds and consoles were 2.3 million.

Their TTM rate for handhelds is decreasing by 1 million systems per quarter for the past seven quarters. (It's almost perfectly linear. Graph it for yourself.) They're at just over 12 million for the last year, so at that rate they'd be down to 8 million per year, provided nothing changes.

How will they turn that trend around and hit 12 million for the coming twelve months, given the historical trajectory for the past two full years? They're already at 12 million and on the way down.
 

Chindogg

Member
Pikmin 3 wasn't profitable? Where are you guys getting those numbers. W101 was a bomb, but don't you think software only companies have failed projects?

As a software only company Nintendo could just release one Mario game every year and make money, sure. But they would want to make more money and expand their sales.

By making a yearly Pokemon/Mario/Zelda. Pikmin does not sell to the point where it matters to keep making sequels. There's a reason why there's supposedly 20 Mario games yet a new Pikmin hasn't been made in a decade.

It sure would be nice if they have taken the Sony route with their ecosystem

Could you imagine if all of these games were available Digitally, on some steam like legacy sale?

You could just download games fast and easy and enjoy them upscaled on a Native emulator?

I didn't know you could download PS3 games and play them upscaled on a native emulator.
 

Metallix87

Member
Pikmin 3 wasn't profitable? Where are you guys getting those numbers. W101 was a bomb, but don't you think software only companies have failed projects?

As a software only company Nintendo could just release one Mario game every year and make money, sure. But they would want to make more money and expand their sales.
You're not thinking straight. To make more money, they would likely completely annualize the franchises I mentioned, not make more niche content. More Mario, more Pokemon, more Zelda, and more Mario Kart.
 
Sure, let's use what's obviously very early footage of the game to judge its quality. The game doesn't even have a title yet.

And they aren't making it, Tecmo Koei is.

No, the Warrior games don't really appeal to the western market that much, so I can see why you wouldn't be too excited, but the Japanese love the Dynasty Warrior series. It's not a cash-in, it's a crossover that excites the Japanese fan base.

I'm a HUGE musuo fan and I see this for exactly what it is: a cash in. The warriors games haven't been good, ever, and slapping zelda on it is the same as putting gundam in it. or one piece or fist of the north star
 
I don't know, Smash Bros definitely will but I feel like Mario Kart is a type of game that many people will have already bought the system for.

I think mk8 will move more systems then smash especially with it having a bundle. having the promotion for a free game and there not being a 3ds version.
 

Shiggy

Member
Sure, let's use what's obviously very early footage of the game to judge its quality. The game doesn't even have a title yet.

And they aren't making it, Tecmo Koei is.

No, the Warrior games don't really appeal to the western market that much, so I can see why you wouldn't be too excited, but the Japanese love the Dynasty Warrior series. It's not a cash-in, it's a crossover that excites the Japanese fan base.

Doesn't really make sense. Zelda isn't big in Japan anymore. It's an attempt to get some cheap 3rd party support. Publishers obviously don't want to risk anything with Nintendo, thus Nintendo pays for the development and hands out its IP. Thus a game (Dynasty Warrior) that would sell like shit in the West will sell somewhat decently in now. That it won't be a real highlight is pretty much a given, based on the series' previous titles and the already released footage.

Also, why is it "early" footage when it's releasing in a few months? I think you should say goodbye to big visual improvements - they rarely materialise when footage is shown less than a year before release.
 
Nitpick facts? Come on now at least you can say the real cost instead of trying to help your argument by saying the wrong price. The fact is that yes the game pad was an unnecessary addition to cost to the wii u just like the kinect is to the xone. Still doesn't mean that the wii u is doing terrible because it has 4 cables. Like I said list the real problems. Don't fudge the truth on the pricing either and maybe we could have an actual discussion.

Word of mouth Clearly helped kill the WiiU for Nintendo fans

The Price killed it for the masses alongside brand confusion.

And Many who bought it a launch ran into ALL the problems listed in their WORST possible forms

If you are going to charge a PREMIUM cost you better be offering a PREMIUM experience. Nintendo seriously messed this up out of the gate.

You get LESS of everything out of the gate. Less storage, less useability, less features.

The only X factor is Nintendo Games. Thats it and it was clearly not enough.
 

Shiggy

Member
He's saying we wouldn't see games like Pikmin, W101, or Bayonetta 2. We would definitely notice after a while.

A company without new experiences and new IPs cannot survive in the current market. Even Ubisoft, EA, and Activision release new titles.

Taking a look at what happens if the same games are released over and over again can be seen with Nintendo today. The sales of recent NSMB, Mario Kart, and other titles decreased dramatically as the game did not bring anything new to the table.
 
I don't understand the WiiU forecast. Is Nintendo forecasting only 70,000 units sold per week worldwide?

I think their line of thought is that it will continue to sell horribly except for a nice bump when Mario Kart releases, and then a ton of sales during the holidays (with Smash and whatever other games will be coming out at the end of the year).

Basically, standard Nintendo sales patterns. They're sales are always heavily skewed towards the holidays.
 

nynt9

Member
They're still around as a shell of what they once were. Sammy gutted that company and only now has it become successful.



The updates have significantly improved the UI speeds to the point where it's not really a problem anymore.

Miiverse is probably one of the best online communities ever made. When a game actually decides to put online MP in (a separate topic altogether which is a fair criticism of Nintendo,) it works just fine. The Wii U eShop is one of the most user friendly shops in all of console gaming.

They need to cut all digital purchase ties to hardware, but overall their online infrastructure is not nearly as bad as people claim it is.

While I do like Miiverse the WiiU eshop is terrible and awfully slow and not user friendly at all, I can't discover anything unless it's explicitly highlighted on the front page and browsing takes forever.
 
By making a yearly Pokemon/Mario/Zelda. Pikmin does not sell to the point where it matters to keep making sequels. There's a reason why there's supposedly 20 Mario games yet a new Pikmin hasn't been made in a decade.



I didn't know you could download PS3 games and play them upscaled on a native emulator.

You being serious right now?
 
Their TTM rate for handhelds is decreasing by 1 million systems per quarter for the past seven quarters. (It's almost perfectly linear. Graph it for yourself.) They're at just over 12 million for the last year, so at that rate they'd be down to 8 million per year, provided nothing changes.

How will they turn that trend around and hit 12 million for the coming twelve months, given the historical trajectory for the past two full years? They're already at 12 million and on the way down.

And the sad thing is it could do just that. 6million 3DS and 2 million Wii Us has to be the extreme low end of what could happen, but I wouldn't rule it out.
 

User Tron

Member
The rationale explained was that Iwata publicly stating a forecast of 9M required he have the capacity/inventory to deliver. Although I imagine production essentially halted upon revision.

3DS and 2DS inventory actually moves, or at least has been moving despite slowing down a lot now. I'm not sure how exactly they account for the cost of inventory of software - development + pressing discs + other associated costs of production?

6M may be an overestimate, however, I don't think it's an unfounded assumption that a large chunk of inventory dollar value, probably a majority, is warehoused Wii Us.

As stupid as it sounds you have to have more inventory on the faster moving goods like the 3ds to keep up with the demand if needed. As the 3ds sold less that expected in the last quarter I imagine that it build up inventory. And still inventory (value) was down since last march. So I'd say they maybe have 3m Wii Us inventory which still is a huge chunk of the total inventory value. With 6m they would have stopped producing any new with that forecast.And that info would have been made public. But in the end it is all speculation so far.
 
Sad results and forecasts. Expected discussion.

As someone who owns multiple next gen platforms and enjoys playing videogames, I am pretty happy with my Wii U as a machine.

It's sad to see the celebration of the failure of the console that is bringing me the most games I want to play this year. Hopefully Nintendo can at least find a profitable niche for those of us who still like playing the well crafted games they offer.
 

Metallix87

Member
A company without new experiences and new IPs cannot survive in the current market. Even Ubisoft, EA, and Activision release new titles.

Taking a look at what happens if the same games are released over and over again can be seen with Nintendo today. The sales of recent NSMB, Mario Kart, and other titles decreased dramatically as the game did not bring anything new to the table.
New titles =/= new niche titles.
 

Chindogg

Member
Word of mouth Clearly helped kill the WiiU for Nintendo fans

The Price killed it for the masses alongside brand confusion.

And Many who bought it a launch ran into ALL the problems listed in their WORST possible forms

If you are going to charge a PREMIUM cost you better be offering a PREMIUM experience. Nintendo seriously messed this up out of the gate.

You get LESS of everything out of the gate. Less storage, less useability, less features.

The only X factor is Nintendo Games. Thats it and it was clearly not enough.

inigo.jpg


You being serious right now?

Please enlighten me. I had no idea I could download TLoU and play it on PS4.
 

Coolwhip

Banned
A company without new experiences and new IPs cannot survive in the current market. Even Ubisoft, EA, and Activision release new titles.

Taking a look at what happens if the same games are released over and over again can be seen with Nintendo today. The sales of recent NSMB, Mario Kart, and other titles decreased dramatically as the game did not bring anything new to the table.

Yes, it doesn't make sense to think that Nintendo suddenly will only make a handful of titles because 'only those make money'. In theory it would even expand their library because they would need to have a broader appeal.
 

Mithos

Member
While I do like Miiverse the WiiU eshop is terrible and awfully slow and not user friendly at all, I can't discover anything unless it's explicitly highlighted on the front page and browsing takes forever.

I can start eShop, find a demo click download, exit eShop back to main Wii U interface before my PS3's shop have even finished loading/booted.
 

Metallix87

Member
Doesn't really make sense. Zelda isn't big in Japan anymore. It's an attempt to get some cheap 3rd party support. Publishers obviously don't want to risk anything with Nintendo, thus Nintendo pays for the development and hands out its IP. Thus a game (Dynasty Warrior) that would sell like shit in the West will sell somewhat decently in now. That it won't be a real highlight is pretty much a given, based on the series' previous titles and the already released footage.

Also, why is it "early" footage when it's releasing in a few months? I think you should say goodbye to big visual improvements - they rarely materialise when footage is shown less than a year before release.
I loathe this post. The series isn't bad, it's just very niche and doesn't appeal to everyone, yourself included.
 
Top Bottom