• 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]

DEA think Nintendoomed?

Also, can't wait to buy SSB4 and X and MK8 and Zelda (and a WiiU).

It don't add up. People on GAF and the rest of the webs are looking forward to these new games like they are the second coming of Christ, and then turn around and say Nintendo is doomed forever. Wat?
 
DEA think Nintendoomed?

Also, can't wait to buy SSB4 and X and MK8 and Zelda (and a WiiU).

It don't add up. People on GAF and the rest of the webs are looking forward to these new games like they are the second coming of Christ, and then turn around and say Nintendo is doomed forever. Wat?

The thing to consider is that these are usually not the same people.
 

atr0cious

Member
That's not remotely true, but you could argue it's a smaller / weaker market on their boxes, I suppose.

Anyway, that's actually a great reason to go that way. Why go into a saturated market with rampant piracy and minimal price points (mobile or PC), when there's a market similar to the one you're familiar with, but larger and with a portion you can potentially corner for yourself?

Because they are already doing that on their own terms. Why do they need to be on another system, with admitted low support for their 'brand?' How is dropping your revenue stream, to pay someone else to do the same thing a sound business move? Now, not only are you not reaching the people you were, but now, you're in a less friendlier ecosystem, with a finite amount of resources and you have to hope that these other ecosystems aren't going to be failures in the long run as well. Imagine if Nintendo was an Xbone exclusive, and they find out they're saddled to number 2 for the generation. It's exactly why Origin and uplay exist. As long as your wares have some worth, every little bit counts.
 
DEA think Nintendoomed?

Also, can't wait to buy SSB4 and X and MK8 and Zelda (and a WiiU).

It don't add up. People on GAF and the rest of the webs are looking forward to these new games like they are the second coming of Christ, and then turn around and say Nintendo is doomed forever. Wat?

Oh come on now.

People...even shareholders of Nintendo or employees of Nintendo here on GAF...can criticize the company or Iwata. Why do you have such an issue with that?

The company itself is not "doomed," nor will they be in the near future. What we're experiencing is a re-orientation within the company towards greater profitability with the failure of the Wii U. As this is a very unique time within Nintendo's history, its nuances are worth discussing.
 

Log4Girlz

Member
Nintendo's next systems should be "steam" machines. Able to play all new Nintendo games, but instead of them being tied to hardware, they are tied to a service. Put that service on PC. Get third parties on board to release games on your service ala steam.
 
Nintendo needs a shake-up on the board level. Some of those guys have been with the company for decades, and it's hard for me to fathom how they can take their jobs so seriously with such unassailable job security. Furthermore, they need someone to initiate and maintain relations with western developers and publishers. NoJ has all but emasculated NoA, leaving western third party publishers and developers with no one of real authority to communicate with aside from conservative and guarded Japanese businessmen with no real understanding of the marketplace outside of Japan.
 

etrain911

Member
DEA think Nintendoomed?

Also, can't wait to buy SSB4 and X and MK8 and Zelda (and a WiiU).

It don't add up. People on GAF and the rest of the webs are looking forward to these new games like they are the second coming of Christ, and then turn around and say Nintendo is doomed forever. Wat?

Just because you're psyched for the release of a game doesn't mean that you think the company itself is headed in the right direction. I'm very excited for Smash Bros. My 3DS is hyped for it, but that has nothing to do with how I view Nintendo as a business.
 
Nintendo needs a shake-up on the board level. Some of those guys have been with the company for decades, and it's hard for me to fathom how they can take their jobs so seriously with such unassailable job security. Furthermore, they need someone to initiate and maintain relations with western developers and publishers. NoJ has all but emasculated NoA, leaving western third party publishers and developers with no one of real authority to communicate with aside from conservative and guarded Japanese businessmen with no real understanding of the marketplace outside of Japan.

They clearly don't understand Japan either. Wii U is performing better in NA than in JP/PAL.
 
Nintendo's next systems should be "steam" machines. Able to play all new Nintendo games, but instead of them being tied to hardware, they are tied to a service. Put that service on PC. Get third parties on board to release games on your service ala steam.
I've proposed that in some sense but with Nintendo making a custom input device (special controller as they always do) but with a more open and standar hardware platform:

http://www.neogaf.com/forum/showthread.php?t=555816&highlight=

Is not a prefect proposition as some kinks need to be corrected but i think is a very plausible model for them to pursue.
 

KoopaTheCasual

Junior Member
A fad doesn't usually last the length of a normal console cycle. The Wii became completely irrelevant in 2012, That's 5 years(Half a decade.).

Also those 100 million or so people who purchased the Wii are probably where their needs are being served. Not on a PS4, and not on an Xbox One, but the mobile market.

Nintendo failed to appeal to kids/families/casuals by trying to be a jack of all trades master of none(Why was Batman, and Aliens such a big deal to them in 2012? Why no exclusively touched based "Casual" games? Why no Wii Sports 3 at launch?), and it's biting their home console business in the ass.
Ok, so I gather that you are (forgive me if my reduction of your argument is at all inaccurate) arguing that since Wii's popularity lasted longer than a particular time frame that it should not be termed a "fad". I personally feel that this would lead into a messy debate, so I'll just leave us to our own opinions on that. The reason why I came at you so sharply was because, you approached the previous poster with a condescending remark about the definition of a fad, when your argument is based off of a personal and arbitrary standard.

For instance, I do not feel the length of 5 years precludes something from being deemed a fad, while you do. Different standards. But I don't think it's right to approach the argument as if you're standing on empirical evidence, when both of you are battling ideals.
To put it simply:

1) Mostly 1 company spearheaded and innovated in motion gaming.
2) The rest of the players in the motion gaming arena just copied already stablished concepts and benefited from then.
3) That sharp decline matches exactly when the company started to drop support due to migrating resources for their next two platforms.
4) Motion sensing electronics are present in most gaming devices after the Wii and are heavily used in mobile devices. So how does that fit the definition of fad?
5) Have you heard of VR? Do you wonder what is the better suited input method for these type of interfaces?

80+ Million customers are playing with their mobile devices, using motion and touch screen controls.
1-3 does not excuse the Wii and motion from being a fad. Time passed and interest waned. That's the progression on a macro level, on which fads are traditionally judged. You can argue why you think interest waned all you want, but it happened.

In response to 4, are you honestly trying to compare touch interface, with full body motion gaming? You're comparing two completely separate experiences, that not only emerged at the same time, but also trace their genesis to completely different origins. That's the definition of a reach.

Similar to 4, 5 is another incredibly reach. VR predates our contemporary idea of motion capture, and it predates touch. Completely different tech, utilized for completely different purposes. Show me data in how the tech simultaneously evolved or how they engage a similar neurological response from the user, and avoid making sweeping generalizations. Another issue is this: you're also comparing a tech that helped a device move 100 million units, to an experimental technology that has sold a resounding 0 consumer units?
 

Log4Girlz

Member
I've proposed that in some sense but with Nintendo making a custom input device (special controller as they always do) but with a more open and standar hardware platform:

http://www.neogaf.com/forum/showthread.php?t=555816&highlight=

Is not a prefect proposition as some kinks need to be corrected but i think is a very plausible model for them to pursue.

I think there is room for services other than Steam, particularly if Nintendo offers japanese titles. They could still make royalties, expand their audience to PC, and if they play their cards right, have a successful line of "steam" boxes, handhelds and peripherals (like the PC controller you outline).

As opposed to hoping to recreate the Wii fad.
 

John Harker

Definitely doesn't make things up as he goes along.
This is the most conservative Nintendo has ever been with its software. Their sole experimentation has been with extremely shallow experiences, mostly aimed towards grandma.

If you expect nothing new from your core Nintendo software, then Iwata has been great. But they can be better without him.

Not sure what you're talking about?

Donkey Kong TF, Mario 3D World, Bravely Default, Pikmin 3... all Nintendo published games, have been extremely challenging. I'm having crazy trouble in TF, Mario 3D World is Brutal in W8, and what game uses status ailments so early in a game as much as BD?! everyone dies of poison all the time!

And getting all the fruit while not losing Pikmin is a hell of a challenge.

So, I think we just live in a different world then.
Unless you haven't played a Nintendo game since Wii era? Then I apologize.

I know they didn't develop BD, but they still invested in it, which is really what we're talking about
 

Road

Member
This thread is too big. Probably been posted a few times, but whatever:

nintendo_sales_14q1t7jvd.png


Revenue = sales of video games.

nintendo_oper_14q1wkjwj.png


Operating income = sales of video games - cost to run video game business.

nintendo_net_14q18bjvp.png


Net income = how much money Nintendo as a company actually made/lost, including extraordinary gains/losses from foreign exchange, lawsuits, bank investments, sales of buildings, taxes and whatever else.


PS: Those are simplistic definitions for operating and net income.
 
This thread is too big. Probably been posted a few times, but whatever:

nintendo_sales_14q1t7jvd.png


nintendo_oper_14q1wkjwj.png


Operating income = sales of video games - cost to run video game business.

nintendo_net_14q18bjvp.png


Net income = how much money Nintendo as a company actually made/lost, including extraordinary gains/losses from foreign exchange, lawsuits, bank investments, sales of buildings, taxes and whatever else.


PS: Those are simplistic definitions for operating and net income.

These graphs make it clear that things aren't going to get any better if they keep doing what they are doing. Yikes.
 
Ok, so I gather that you are (forgive me if my reduction of your argument is at all inaccurate) arguing that since Wii's popularity lasted longer than a particular time frame that it should not be termed a "fad". I personally feel that this would lead into a messy debate, so I'll just leave us to our own opinions on that. The reason why I came at you so sharply was because, you approached the previous poster with a condescending remark about the definition of a fad, when your argument is based off of a personal and arbitrary standard.

For instance, I do not feel the length of 5 years precludes something from being deemed a fad, while you do. Different standards. But I don't think it's right to approach the argument as if you're standing on empirical evidence, when both of you are battling ideals.
It's really not a subjective thing, before last generation a console cycle usually lasted about 4 to 5 years. Saying "The Wii was a fad!" completely ignores all the multitude of problems Nintendo has created by half serving an audience that they fostered for 5 years with the WiiU.
 
Not sure what you're talking about?

Donkey Kong TF, Mario 3D World, Bravely Default, Pikmin 3... all Nintendo published games, have been extremely challenging. I'm having crazy trouble in TF, Mario 3D World is Brutal in W8, and what game uses status ailments so early in a game as much as BD?! everyone dies of poison all the time!

And getting all the fruit while not losing Pikmin is a hell of a challenge.

So, I think we just live in a different world then.
Unless you haven't played a Nintendo game since Wii era? Then I apologize.

I know they didn't develop BD, but they still invested in it, which is really what we're talking about

I'm not talking about challenge. All three of the Nintendo-developed games you mention play nearly identical to their predecessors. 3D World and DKC:TF are particularly egregious examples since we just got games that play like them on 3DS and Wii, respectively.

There's no freshness to internally-developed Nintendo software anymore. They might be good-to-fantastic games, but they're not exciting and haven't been since Kid Icarus Uprising and maybe Galaxy before that.

The problem with offering the same experiences over and over again is that gamers like you, who remain happy, are a diminishing resource. The more "me too" sequels they develop, the more that pool of loyalty shrinks.
 
This is the most conservative Nintendo has ever been with its software. Their sole experimentation has been with extremely shallow experiences, mostly aimed towards grandma.

If you expect nothing new from your core Nintendo software, then Iwata has been great. But they can be better without him.
I agree. They used to be much more ambitious before Iwata's management. Hell, getting a new Mario game in the 90s was an event. Nowadays? It's pedestrian. Nobody even talks about or remembers NSMBU, NSMB2 or 3D World. They came and went with such little sustaining excitement. Like many have said, Nintendo's core titles of late have been very safe. It's diluting the brand appeal of their most important titles.
 
Ok, so I gather that you are (forgive me if my reduction of your argument is at all inaccurate) arguing that since Wii's popularity lasted longer than a particular time frame that it should not be termed a "fad".

I think the more compelling argument is that the sales progression of the Wii life cycle exactly resembles that of other Nintendo consoles, just magnified on a tremendous scale. Also, the fact that this success wasn't just isolated to Wii but was also happening for DS. The whole scenario reads more like a well-executed strategy on both platforms than a fad outside of Nintendo's control. That the 3DS/Wii U strategy is almost laughably opposite the DS/Wii strategy and is achieving predictably opposite performance underlines this even further.
 

KoopaTheCasual

Junior Member
It's really not a subjective thing, before last generation a console cycle usually lasted about 4 to 5 years. Saying "The Wii was a fad!" completely ignores all the multitude of problems Nintendo has created by half serving an audience that they fostered for 5 years with the WiiU.
Time frame is only a qualifying factor of determining a fad. The other, more important issue is the drop-off. Show me another console with extreme sales trajectory in a 5 year span:
AbUcGfg.png
 

RedSwirl

Junior Member
I notice now that now one's said anything about the strong yen or weak dollar. That's what got most of the blame for Nintendo's losses two years ago I believe.
 

John Harker

Definitely doesn't make things up as he goes along.
I'm not talking about challenge. All three of the Nintendo-developed games you mention play nearly identical to their predecessors. 3D World and DKC:TF are particularly egregious examples since we just got games that play like them on 3DS and Wii, respectively.

There's no freshness to internally-developed Nintendo software anymore. They might be good-to-fantastic games, but they're not exciting and haven't been since Kid Icarus Uprising and maybe Galaxy before that.

The problem with offering the same experiences over and over again is that gamers like you, who remain happy, are a diminishing resource. The more "me too" sequels they develop, the more that pool of loyalty shrinks.

You're speaking as a fan, that's actually not completely accurate given market realities.
Consolidation of IP is not a Nintendo-plagued issue, but a by product of 'following the money,' which is driven by consumer purchase behavior. It's no different than anyone else, really. You only see 'innovation' at new console transitions, and even looking at the launch of this new cycle, it hasn't even hit yet.

As I said in my original post, I was talking as a fan too, so I hear you. We just have different expectations of what we want from them as a developer.

But in terms of business development, they are chasing what their fans want. Both Mario's have insane attach rates.
They however, have pretty much lost everyone else because the value proposition of their new platform has not become a mass-market viability. And for a a large variety of reasons I don't really care to get into any more, it's not making anyone money. And as someone whose career makes money of the success of Nintendo, I'm leaving my business opinion out of it haha!
 
Time frame is only a qualifying factor of determining a fad. The other, more important issue is the drop-off. Show me another console with extreme sales trajectory in a 5 year span:

The drop-off rate is, proportionally speaking, pretty similar to that of previous consoles. And, like previous consoles, the major drop-off coincided with a major drop-off in the number of titles released.

Can't be bothered to make a graph, but here's the data:

http://www.nintendo.co.jp/ir/library/historical_data/pdf/consolidated_sales_e1403.pdf
http://www.nintendo.co.jp/ir/library/historical_data/pdf/number_of_titles_e1403.pdf

I agree that Nintendo's biggest problem is that their games at this point feel annualized (in terms of the final products, obviously not the frequency). That may be fine for third-party publishers with established install bases, but it doesn't do much for a console maker.
 
I agree. They used to be much more ambitious before Iwata's management. Hell, getting a new Mario game in the 90s was an event. Nowadays? It's pedestrian. Nobody even talks about or remembers NSMBU, NSMB2 or 3D World. They came and went with such little sustaining excitement. Like many have said, Nintendo's core titles of late have been very safe. It's diluting the brand appeal of their most important titles.

In the span of the two years from November 2011 through November 2013, Nintendo released three NSMB games and two 3D platformers that attempted to be NSMB in 3D, plus one adventure/RPG that didn't play like NSMB but was obviously influenced by it in aesthetics and structure.

That's terrible brand management, and it can't really lead to any outcome other than diminishing returns.
 

Chemo

Member
Harsh numbers. Both 3DS and Wii U deserve more.

There is fun to be had with the system, but the Wii U is getting exactly what it deserves. People should hope that Nintendo has actually paid attention and learned all of the harsh-but-necessary lessons that this absolute disaster has taught them.
 
The PS4 is successful because SONY had a clear vision. They targeted a specific demo(Young western men), and struck gold. PS4's audience wants Skyrim, CoD, and Fifa not Mario. A third party Nintendo will never ever make any sort of sense(At least in SONY/MS's ecostytem.) They'd be better off turning eShop into steam on PCs.

I agree with you that a chunk of early PS4/XBone adopters wouldn't be interested in a lot of Nintendo's games but what about when PS4 hits $299 in late 2015 and the mass market arrives ?. I think games like Mario, Mario Kart, DKC, Smash, Zelda and Metroid would all do incredibly well on those platforms with a more diverse customer base. They could even make more of the Wii Sports / Party / Fit games using PS Move / Kinect to target the really casual consumers.

People often forget when this subject is brought up that all the usual Nintendo fans would be buying one of the other consoles if it was the only way to get console versions of Nintendo software. Nintendo games would sell WiiU like software numbers on PS4/XBone alone just from hardcore Nintendo fans buying them. Add in the more core PS4/XBone audience for Smash / Zelda / Metroid and the more casual audience buying Kart / 2D Mario / DKC and they would sell an incredible amount of software on Sony / MS consoles.

This whole "PS4/XBone owners don't want Nintendo games anyway because all they play is AAA shoot bang with sex and swearing !" goes back to the incredibly annoying snobbery some Nintendo fans have with regards to gamers who don't play on Nintendo consoles.

They're rumored to be merging they're portable, and home console's ecosystems. They're not going to make some stupid hybrid console that no one will want.

I think the Smash Bros set up will be the future of Nintendo. Still two pieces of hardware but single games with slight differences between the two versions to encourage people to double dip. Only one version of each franchise instead of a different home and a handheld version will free up a lot of development staff to create far more content and hopefully avoid software droughts.
 

bart64

Banned
There is fun to be had with the system, but the Wii U is getting exactly what it deserves. People should hope that Nintendo has actually paid attention and learned all of the harsh-but-necessary lessons that this absolute disaster has taught them.
The lesson that it's tough to transition into HD, that there is more competition now, that Nintendo is not immune to change? What exactly is surprising about this? Have they not been planning for this with those cash reserves?
 
I'm not talking about challenge. All three of the Nintendo-developed games you mention play nearly identical to their predecessors. 3D World and DKC:TF are particularly egregious examples since we just got games that play like them on 3DS and Wii, respectively.

There's no freshness to internally-developed Nintendo software anymore. They might be good-to-fantastic games, but they're not exciting and haven't been since Kid Icarus Uprising and maybe Galaxy before that.

The problem with offering the same experiences over and over again is that gamers like you, who remain happy, are a diminishing resource. The more "me too" sequels they develop, the more that pool of loyalty shrinks.

To be honest, I don't think the fact that they play very similar to their predecessors is the problem. They had some innovation in their Wii U lineup just with Nintendoland and W101. They both failed. Whether it be style, or marketing, or just not being what people wanted to play at that point, almost everything has failed to ignite interest in Wii U. Nobody complained about Galaxy 2. On other consoles, yearly iterations clearly sell by the bucketload. Nintendo can only completely reimagine franchises every so often. 3D World may have seemed "me too" but only because a mainline Mario game never debuted on a portable before (arguably, I love the GB Land trilogy). Donkey Kong is only a bit disappointing in that it should have only been released 2 years max after the first game.
 

AniHawk

Member
Add in the more core PS4/XBone audience for Smash / Zelda / Metroid and the more casual audience buying Kart / 2D Mario / DKC and they would sell an incredible amount of software on Sony / MS consoles.

you have nothing to support this other than a gut feeling. that's where this argument dies, every time.
 
Why don't they officially abandon the wiiu and come out with a high powered console?
Surely pissing off less than 5 million people can't be the reason, they've pretty much let the die on arrival.
 

prag16

Banned
I actually don't think so. I don't think the next console will have any relation to what happens with Wii U besides the fact that Nintendo's console division is in the shitter. I mean I don't think they should pull support completely, but just putting any more huge resources into the system is really not going to benefit Nintendo.

I definitely agree on the last point. The last BIG game will more than likely be Zelda. While I don't think how they wind down the Wii U will have TOO drastic an impact on the next hardware, I also think it would be in their best interests to make sure they keep the percentage of their "base" that feels burned by the Wii U as low as possible.
 

KoopaTheCasual

Junior Member
I think the more compelling argument is that the sales progression of the Wii life cycle exactly resembles that of other Nintendo consoles, just magnified on a tremendous scale. Also, the fact that this success wasn't just isolated to Wii but was also happening for DS. The whole scenario reads more like a well-executed strategy on both platforms than a fad outside of Nintendo's control. That the 3DS/Wii U strategy is almost laughably opposite the DS/Wii strategy and is achieving predictably opposite performance underlines this even further.
While I do lend credence to the idea that Nintendo's marketing and management at the DS and Wii launch was ace, the trajectory of the Wii is still very different from even the DS. Compare percentage drop of year to year Wii sales with any other home console from Nintendo. If the spike was solely the product of good management, the sales trend would be similar to the DS, which sold better than it's predecessors, but still had a similar sales drop percentage. It would just look like an 'elevated' graph, almost. The Wii's sales behavior isn't reflective of this. It quite literally is a sharp spike in the graph.

I'm not saying that part of the Wii's success was not harnessing their marketing and riding the popularity of motion, but I am saying that it is very much an anomaly in Nintendo's history, no matter how you look at it.

Edit: ahh we're responding to different comments of each other. I'll just wait a bit so we can sync up.
 

Road

Member
I notice now that now one's said anything about the strong yen or weak dollar. That's what got most of the blame for Nintendo's losses two years ago I believe.

The yen was causing them losses three years ago. For the past two years Nintendo is actually gaining from the foreign exchange.

2011: -49 billion
2012: -28 billion
2013: +40 billion
2014: +39 billion

yen.

Without them, this fiscal year would be even worse.

Highlighting these things or other extraordinary gain/losses is what you do when you want to put blame elsewhere. It's like all the pointless shit Sony says every year (Oh, we lost 1 billion because the Moon crossed on Saturn). Nobody was rushing to highlight Nintendo lost 220 billion yen in forex in fiscal years 2008 and 2009 because they were making banking with Wii and DS.

As long as your business isn't making money, you're in trouble. You shouldn't plan your company on this type of uncertain income.
 

Chemo

Member
The lesson that it's tough to transition into HD, that there is more competition now, that Nintendo is not immune to change? What exactly is surprising about this? Have they not been planning for this with those cash reserves?

I think your comment should be directed at the guy I quoted, maybe, because I have expressed not one shred of surprise regarding Nintendo's current situation.

And to note, those aren't the only lessons they needed to learn, but I'm sure you know that already.
 
Yeah, this. He may not be a good businessman, but he's a developer and from the gaming side he's pretty good. I rather have him (or another game creator) rather than a businessman who only cares about profits over all.

I just found out that roughly 0.009% of my retirement portfolio is tied up in Nintendo.

Toss the bums out on their ears, let's start making some real money.
 
Top Bottom