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Nintendo Q4 FYE 3/15 Results - Beats Market Expectations, FY15 Guidance Announced

ZhugeEX

Banned
Is this the first quarter that we can say definitively that the X1 has passed the Wii U? Shipments haven't always been clear for the X1, but it's very reasonable to assume it has passed 10 million.

It passed it last quarter.

nin_zps9wps2ckl.jpg


I can add N64/SNES/NES if someone wants me to.
 

Papacheeks

Banned
If Nintendo titles don't sell on mobile it completely obliterates any possible argument that they would sell by the ton as a third party on PS4 / Xbone.

I never said Nintendo needs to go third party?

And it's not a sign that they won't sell on a platform like PSN or XBox live, steam.

Those are fairly big markets and maybe a better place to sell smaller mobile games. Hell a lot of mobile games are getting ported over to steam with fairly decent success.
 
I'm kinda surprised that people equating a corporation beating analysts expectations as a sign Nintendo's business strategy is on track in the medium turn.

Um newsflash, the majority of companies beat expectations, they spend a good part of a year laying the ground with analysts so they have a positive story to tell when return season comes around, not a negative one. They work very, very hard towards that, esp given past failures.

There's no news story here other than some new numbers, the long term verdict on Nintendo remains that they're going to tough out this product cycle using the keidanren standard giant cash pile and release new hardware. Regardless of how bad the Wii U is, Nintendo is 100% stable in the 5 year outlook, although granted with a stock that'll be shunned like a kosher deli in Nuremberg.

And, more than likely bounce back because there's zero signs that the box under the TV business is contracting in the slightest, even if the mobile business is expanding at a more rapid rate and presents more opportunities to grow. Hell the friggin Chinese market just got opened up, leaving now would be incredibly foolish. Nintendo proved it could make a profit from the N64 and Gamecube, there's zero indication that they'll ever be in a position where they can't eke out an existence with even a very distant third place post Wii U console.


And re Mario Kart 8/Smash, if you think those numbers are good, look at Halo CE's from Xbox launch. It's simply a case of "if you have the console you might as well take what's available to you."
what does that even mean? halo sold crazy well and became one of the biggest franchises in gaming with combat evolved. comparing mario kart and super smash to halo would be a massive complement
 

AniHawk

Member
The whole freaking discussion is about abandoning hardware. I'm not going to suggest Nintendo to keep their hardware but to make their software available for everyone and while Sonys hardware sales are not as tightly connected to their first party they are still connected and the games are still needed to define the system.

the thing is, i think you're looking at this as though this is a situation that's happening solely to nintendo.

T4LWRsH.jpg


no one still in the industry still making physical platforms sold more hardware than they did last gen. and no one is selling more hardware this generation than they did last gen.

it's a shrinking space, and instead of circling the wagons, nintendo would be better off securing their future in the very real and growing digital space. there's still room for hardware, and they can probably profit from it, but i think next gen will be a transition for most, and a last hurrah for others.

to be quite honest, what you suggest ignores many factors. aside from the obvious decrease in creative freedom and obvious decrease in the amount of money they would earn in software (coupled with the obvious increase in development cost going from 3ds/wii u development to ps4 or god forbid ps5 development), there's also no guarantee that their audience was secretly on the ps4 the entire time.
 

ZhugeEX

Banned
Videogame hardware sales by generation.

Unit sales of hardware is my guess.

Nintendo is surprisingly stable when you take out wii's psychotic success.

It doesn't make sense if it's hardware unit sales.

Scale is all wrong and it's all out of proportion.
 

Celine

Member
It doesn't make sense if it's hardware unit sales.

Scale is all wrong and it's all out of proportion.
He is including handhelds (but maybe not GG and the awesome WonderSwan).
The most confusing thing is that he split GB and GBC sales.
The split is actually unknown I believe, only GB/C total is known.
 
Nintendo are pushing Splatoon like crazy (compared to their marketing efforts for other games at least), pretty sure they do have high hopes for it.

Ehh. I wouldn't call you tube videos like crazy. If they actually spend a decent amount on television ads, I would call that throwing some serious support, but I doubt they would throw good money after bad. They can't expect much.
 

ZhugeEX

Banned
He is including handhelds (but maybe not GG and the awesome WonderSwan).
The most confusing thing is that he split GB and GBC sales.
The split is actually unknown I believe, only GB/C total is known.

That still doesn't make sense.

Look at Gen 8 for example, it should be no higher than ~110m but it's at more than double that.
 

AniHawk

Member
That still doesn't make sense.

Look at Gen 8 for example, it should be no higher than 100m but it's at more than double that.

oh, if gen 8 is the concern, i should have clarified that it's my projection. working with 50m for microsoft, 114m for sony, and 74m for nintendo.

this is the current look at gen 8:

5rb3Puf.jpg
 

ZhugeEX

Banned
oh, if gen 8 is the concern, i should have clarified that it's my projection. working with 50m for microsoft, 114m for sony, and 74m for nintendo.

Ah, sorry. My fault then.

I got confused because I didn't realise you were including handhelds and were projecting gen 8.
 
This may help you understand why hardware is important to Nintendo.

B5r1c9.jpg

You do realize that the only amount which would change for Nintendo is the $12 on your chart going to the console maker (If it in fact is even that much), right? In exchange they would gain access to a userbase more than 3x the size of what they currently have access to, it's a good trade-off. Console sales in particular are way below what other major publishers such as Activision enjoy. CoD alone annually will account for more than half of what Nintendo sells in the console space annually even on a bad year for them.

You sell by volume, and the problem is that their customer base has shrunk down dramatically, and is likely to get even smaller next gen.
 

StevieP

Banned
oh, if gen 8 is the concern, i should have clarified that it's my projection. working with 50m for microsoft, 114m for sony, and 74m for nintendo.

this is the current look at gen 8:

5rb3Puf.jpg

I think you're being overly generous to all 3 console makers to some degree.

You do realize that the only amount which would change for Nintendo is the $12 on your chart going to the console maker (If it in fact is even that much), right? In exchange they would gain access to a userbase more than 3x the size of what they currently have access to, it's a good trade-off. Console sales in particular are way below what other major publishers such as Activision enjoy. CoD alone annually will account for more than half of what Nintendo sells in the console space annually even on a bad year for them.

You sell by volume, and the problem is that their customer base has shrunk down dramatically, and is likely to get even smaller next gen.

Please provide proof that Nintendo family friendly output games would sell to those "3x" audiences. I'll start you off: Sales of Sonic All Star Racing (a game that's high quality, with an established brand similar to that of Nintendo's Mario Kart). You can even combine sales of PS360 like many do, erroneously, if you'd like.
 
the thing is, i think you're looking at this as though this is a situation that's happening solely to nintendo.

T4LWRsH.jpg


no one still in the industry still making physical platforms sold more hardware than they did last gen. and no one is selling more hardware this generation than they did last gen.

it's a shrinking space, and instead of circling the wagons, nintendo would be better off securing their future in the very real and growing digital space. there's still room for hardware, and they can probably profit from it, but i think next gen will be a transition for most, and a last hurrah for others.

to be quite honest, what you suggest ignores many factors. aside from the obvious decrease in creative freedom and obvious decrease in the amount of money they would earn in software (coupled with the obvious increase in development cost going from 3ds/wii u development to ps4 or god forbid ps5 development), there's also no guarantee that their audience was secretly on the ps4 the entire time.

Grouping handhelds with consoles to showcase decline is absurd, everyone freely accepts that traditional handhelds are a dead medium. The fact that people ignore iOS and Android in these discussions as competitors to the model but treat handhelds and consoles as a single entity is similarly silly, especially in Sony's case when they in fact develop Andoid-based hardware. Including those platforms in your chart would show that the userbase for games has in fact jumped to potentially over a billion. Publishers/devs are enjoying a sort of second Renaissance right now, this is the most profitable period in the history of game development.
 
I think you're being overly generous to all 3 console makers to some degree.



Please provide proof that Nintendo family friendly output games would sell to those "3x" audiences. I'll start you off: Sales of Sonic All Star Racing (a game that's high quality, with an established brand similar to that of Nintendo's Mario Kart). You can even combine sales of PS360 like many do, erroneously, if you'd like.

Minecraft, Lego, Skylanders, Disney Infinity.

That was easy.
 

ZhugeEX

Banned
Grouping handhelds with consoles to showcase decline is absurd, everyone freely accepts that traditional handhelds are a dead medium. The fact that people ignore iOS and Android in these discussions as competitors to the model but treat handhelds and consoles as a single entity is similarly silly, especially in Sony's case when they in fact develop Andoid-based hardware. Including those platforms in your chart would show that the userbase for games has in fact jumped to potentially over a billion. Publishers/devs are enjoying a sort of second Renaissance right now, this is the most profitable period in the history of game development.

I do have to agree with this post.

They should be separated into console, handheld, mobile, PC. Or just put all together.
 

Nightbird

Member
Grouping handhelds with consoles to showcase decline is absurd, everyone freely accepts that traditional handhelds are a dead medium. The fact that people ignore iOS and Android in these discussions as competitors to the model but treat handhelds and consoles as a single entity is similarly silly, especially in Sony's case when they in fact develop Andoid-based hardware. Including those platforms in your chart would show that the userbase for games has in fact jumped to potentially over a billion. Publishers/devs are enjoying a sort of second Renaissance right now, this is the most profitable period in the history of game development.

Doesn't change that it's about dedicated Gaming Hardware.

Even if Handhelds are a dying Medium, it's still a existing Medium, wich alone should be reason enough to include it
 
Grouping handhelds with consoles to showcase decline is absurd, everyone freely accepts that traditional handhelds are a dead medium. The fact that people ignore iOS and Android in these discussions as competitors to the model but treat handhelds and consoles as a single entity is similarly silly, especially in Sony's case when they in fact develop Andoid-based hardware. Including those platforms in your chart would show that the userbase for games has in fact jumped to potentially over a billion. Publishers/devs are enjoying a sort of second Renaissance right now, this is the most profitable period in the history of game development.

Handhelds and consoles are both electronic devices whose primary reason to exist is to serve as a platform to play games on.

Mobiles and tablets are consumer electronic devices whose primary reason to exist is communication, and general purpose computing respectively, that also happen to play games.

It makes more sense to group consoles and handhelds together to look at the state of the "hardcore gaming" market (read: the market for devices whose raison d'etre is to play videogames) than it is to group playstation and mobile because sony also make mobile phones.
 

ZhugeEX

Banned
Handhelds and consoles are both electronic devices whose primary reason to exist is to serve as a platform to play games on.

Mobiles and tablets are consumer electronic devices whose primary reason to exist is communication, and general purpose computing respectively, that also happen to play games.

It makes more sense to group consoles and handhelds together to look at the state of the "hardcore gaming" market (read: the market for devices whose raison d'etre is to play videogames) than it is to group playstation and mobile because sony also make mobile phones.

More than 63% of gamers who buy lots of games on console also buy games on mobile and spend more than 10 hours a week playing them. So what is hardcore gaming?

Also there are ways to track just mobile gaming spend/sales/downloads.
 
Doesn't change that it's about dedicated Gaming Hardware.

Even if Handhelds are a dying Medium, it's still a existing Medium, wich alone should be reason enough to include it

For anyone that's followed the game industry for the past 20+ years, I assure you this line of thought is nothing new. Even as far back as the PS1, we saw people claim that it wasn't a true "Dedicated" gaming platform because it functioned as a CD player and therefore wasn't a part of the same category as systems like the N64. It plays games and a lot of people use it to play games, what the fuck does is matter that people also use it for Netflix?

It was a silly argument then, and it remains silly now.
 

TI82

Banned
3.6 million for Wii U in the same year that smash AND Mario kart came out. Man that's bad.

9 million for the aging 3ds is not too bad, bet a large chunk of that is from the new 3ds too.
New Wii U confirmed?
 
More than 63% of gamers who buy lots of games on console also buy games on mobile and spend more than 10 hours a week playing them. So what is hardcore gaming?

I don't particularly like the term "hardcore" / "core" / "dedicated" / whatever as it implies usage habits, but for the purposes of this discussion: people who enjoy gaming as a hobby enough to purchase dedicated hardware devoted to it.

There is evidence that that group is shrinking.
 

ZhugeEX

Banned
3.6 million for Wii U in the same year that smash AND Mario kart came out. Man that's bad.

9 million for the aging 3ds is not too bad, bet a large chunk of that is from the new 3ds too.
New Wii U confirmed?

You're looking at the wrong numbers. That was what they forecasted/expected to sell.

The actual numbers are 3.38m for Wii U and 8.73m for 3DS which are lower than their guidance.
 

Adachi

Banned
the thing is, i think you're looking at this as though this is a situation that's happening solely to nintendo.

T4LWRsH.jpg


no one still in the industry still making physical platforms sold more hardware than they did last gen. and no one is selling more hardware this generation than they did last gen.

it's a shrinking space, and instead of circling the wagons, nintendo would be better off securing their future in the very real and growing digital space. there's still room for hardware, and they can probably profit from it, but i think next gen will be a transition for most, and a last hurrah for others.

to be quite honest, what you suggest ignores many factors. aside from the obvious decrease in creative freedom and obvious decrease in the amount of money they would earn in software (coupled with the obvious increase in development cost going from 3ds/wii u development to ps4 or god forbid ps5 development), there's also no guarantee that their audience was secretly on the ps4 the entire time.

You do realize that the people that now game on Wii U wouldn't just drop out of gaming if the system ceases to exist, right? Excluding the tiny percentage of nutcases that are actually so involved in the console war that they'd stop gaming if Nintendo left the hardware space everyone else would migrate to a new platform that offers the Nintendo games.

Your obvious decrease in amount of money they would earn in software is way less obvious then you're making it out to be, you're just ignoring the massively larger audience they'd be able to sell to and the massively larger effects that price differentiating methods would have on that audience. And I already said that Nintendo's games mainly live on artstyle instead of the highest fidelity graphics, they don't need to create extremely detailed textures or massively intricate lighting engines for their games to work, a Mario Kart 8 with a bumped up resolution would easily work on the other systems and I'd highly doubt that that'd increase development cost by much. Besides do you think Nintendo's own next system isn't going to boast higher process power? Development costs for Nintendo are going to rise either way.

And finally with you saying that they should secure their future in the digital space, assuming you're talking about streaming here, you're actually agreeing with me saying that they should stop making hardware.
 

Serenity

Member
Handhelds and consoles are both electronic devices whose primary reason to exist is to serve as a platform to play games on.

Mobiles and tablets are consumer electronic devices whose primary reason to exist is communication, and general purpose computing respectively, that also happen to play games.

It makes more sense to group consoles and handhelds together to look at the state of the "hardcore gaming" market (read: the market for devices whose raison d'etre is to play videogames) than it is to group playstation and mobile because sony also make mobile phones.

Doesn't this contradict your attempt at a gotcha earlier when you said that if Nintendo's games don't sell on mobile it blows up the idea that their games would sell on Ps4/X1 if they went third party. Is mobile a different market or not?
 

AniHawk

Member
Grouping handhelds with consoles to showcase decline is absurd, everyone freely accepts that traditional handhelds are a dead medium. The fact that people ignore iOS and Android in these discussions as competitors to the model but treat handhelds and consoles as a single entity is similarly silly, especially in Sony's case when they in fact develop Andoid-based hardware. Including those platforms in your chart would show that the userbase for games has in fact jumped to potentially over a billion. Publishers/devs are enjoying a sort of second Renaissance right now, this is the most profitable period in the history of game development.

it's not really that silly. the 3ds is poised to sell about as much or more than the xbox one for this generation, which itself is a distant second to its nearest competitor. actually, if the xbox one sold 50m units for the generation and the ps4 sold 100m units, the xbox one's nearest competitor would be the wii u, but that might be besides the point. i'm not arguing that video games are dying, but that this old method of buying software that only runs on specific machines is in decline. i don't think you get to pick and choose examples and point to this model doing well when it's only one machine out of five that has the capability to outsell its predecessor.
 
You do realize that the people that now game on Wii U wouldn't just drop out of gaming if the system ceases to exist, right?

Do you believe that the majority of WiiU owners are:
1) People who already own other gaming systems and buy Nintendo products because it is the only way to play Nintendo games?
or
2) People who buy Nintendo systems because they offer something fundamentally different to what the PS4 / Xbone offer?

Doesn't this contradict your attempt at a gotcha earlier when you said that if Nintendo's games don't sell on mobile it blows up the idea that their games would sell on Ps4/X1 if they went third party. Is mobile a different market or not?

No, and yes, in that order.

this is more true than most people want to admit, and it doesn't just stop at handhelds.
 

Serenity

Member
Do you believe that the majority of WiiU owners are:
1) People who already own other gaming systems and buy Nintendo products because it is the only way to play Nintendo games?
or
2) People who buy Nintendo systems because they offer something fundamentally different to what the PS4 / Xbone offer?



No, and yes, in that order.


this is more true than most people want to admit, and it doesn't just stop at handhelds.

Maybe I'm not understanding you if mobile and dedicated consoles are different markets how does what sells well on mobile affect what would sell well on dedicated consoles?
 

Sandfox

Member
You do realize that the only amount which would change for Nintendo is the $12 on your chart going to the console maker (If it in fact is even that much), right? In exchange they would gain access to a userbase more than 3x the size of what they currently have access to, it's a good trade-off. Console sales in particular are way below what other major publishers such as Activision enjoy. CoD alone annually will account for more than half of what Nintendo sells in the console space annually even on a bad year for them.

You sell by volume, and the problem is that their customer base has shrunk down dramatically, and is likely to get even smaller next gen.
There's a lot more to it than just saying that there are 3x more people on other platforms so sales will increase.
 

StormKing

Member
You do realize that the people that now game on Wii U wouldn't just drop out of gaming if the system ceases to exist, right? Excluding the tiny percentage of nutcases that are actually so involved in the console war that they'd stop gaming if Nintendo left the hardware space everyone else would migrate to a new platform that offers the Nintendo games.

Your obvious decrease in amount of money they would earn in software is way less obvious then you're making it out to be, you're just ignoring the massively larger audience they'd be able to sell to and the massively larger effects that price differentiating methods would have on that audience. And I already said that Nintendo's games mainly live on artstyle instead of the highest fidelity graphics, they don't need to create extremely detailed textures or massively intricate lighting engines for their games to work, a Mario Kart 8 with a bumped up resolution would easily work on the other systems and I'd highly doubt that that'd increase development cost by much. Besides do you think Nintendo's own next system isn't going to boast higher process power? Development costs for Nintendo are going to rise either way.

And finally with you saying that they should secure their future in the digital space, assuming you're talking about streaming here, you're actually agryeeing with me saying that they should stop making hardware.

Going third party willingly would produce a death spiral. If Nintendo stops selling their own hardware, then they would need to significantly reduce their workforce damaging employee morale. They would be viewed as a fallen company and thus investor confidence would be lost.

There is no reason for Nintendo to go third party unless they have no other choice. Once they go third party there is no going back. In addition, every single hardware maker that stopped selling hardware were either bought or went defunct.

Nintendo does not desire to be the next Atari or Sega.
 

AniHawk

Member
You do realize that the people that now game on Wii U wouldn't just drop out of gaming if the system ceases to exist, right? Excluding the tiny percentage of nutcases that are actually so involved in the console war that they'd stop gaming if Nintendo left the hardware space everyone else would migrate to a new platform that offers the Nintendo games.

the audience for family games isn't on the ps4. sony hasn't done a good job of cultivating it. as such it would fall to nintendo to actually build this audience, which is sort of a super shitty deal.

Your obvious decrease in amount of money they would earn in software is way less obvious then you're making it out to be, you're just ignoring the massively larger audience they'd be able to sell to and the massively larger effects that price differentiating methods would have on that audience.

a bigger audience doesn't always mean bigger sales. final fantasy xiii did better on the ps3 when the xbox 360 outsold the machine by over 60% in the us. virtue's last reward did the same on the vita and 3ds despite the 3ds having millions of users more. lego games do better on the wii u than other current generation platforms. audience size matters, sure, but the kind of audience matters too. this is a crucial element, because sony's best success in the family market since 2011's littlebigplanet 2 was 2013's knack, a launch title that might as well be the ps4's red steel.

And I already said that Nintendo's games mainly live on artstyle instead of the highest fidelity graphics, they don't need to create extremely detailed textures or massively intricate lighting engines for their games to work, a Mario Kart 8 with a bumped up resolution would easily work on the other systems and I'd highly doubt that that'd increase development cost by much. Besides do you think Nintendo's own next system isn't going to boast higher process power? Development costs for Nintendo are going to rise either way.

the development structure would be different. nintendo had to change the entire pipeline when it came to wii u development, and that was when they had everything under their control. now they have to work on more advanced architecture not just for their console team, but their handheld team as well, and this time they have no control in what makes it easy on their side.

And finally with you saying that they should secure their future in the digital space, assuming you're talking about streaming here, you're actually agreeing with me saying that they should stop making hardware.

i will assume you never actually read my other posts detailing my thoughts on their future when i responded to you previously. i don't think they should stop making hardware as much as i think it is an inevitability that the traditional model is no longer going to be supported. i think next gen they should make hardware, but also future-proof themselves in a way that they're prepared for a dedicated hardwareless future. this doesn't mean i think they should stop being a first-party.
 

Adachi

Banned
Do you believe that the majority of WiiU owners are:
1) People who already own other gaming systems and buy Nintendo products because it is the only way to play Nintendo games?
or
2) People who buy Nintendo systems because they offer something fundamentally different to what the PS4 / Xbone offer?

Entirely irrelevant.
 

Shauni

Member
Ehh. I wouldn't call you tube videos like crazy. If they actually spend a decent amount on television ads, I would call that throwing some serious support, but I doubt they would throw good money after bad. They can't expect much.

Splatoon is easily the most they're pushed a new IP in quite a long time. Yeah, a lot of it has been digital-based media, like their directs (it's had significant presence in almost all of their general Directs, which almost no other game has had), but it had a large presence at E3 last year as well as live events and a small amiibo line. It had a TV commercial recently, too. I have no idea what they're expecting at the end of the day, but considering today's Direct, which focused a lot on post-release content, I think it's not that big of a jump to think they're wanting Splatoon to stick.

Compare it to the exposure of, say, The Wonderful 101, and it's obvious they are putting quite a good deal behind it for a new IP.
 
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