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Nintendo's 2015 Fiscal Year Financial Results Briefing | 10:00 AM JST

Hm, now, the more interesting question would be, is PS4K going to be sold at loss? Being a more enthusiast oriented device, i'd think not. If NX is going to be in the ballpark of PS4K/XOne.5, maybe a bit lower, they might be able to avoid selling it at loss without dooming it by high price.

It's not very clear. But both charge for online so even if there would have been a small loss it was more than compensated by gold and plus.
That's the one thing that Nintendo is very welcome to ignore for at least the NX gen.
 

The_Lump

Banned
My interpretation: Either they've struck some exceptional deals with AMD or they are not aiming much higher than PS4. I'm fine with that btw. As long as it's modern technology and forward thinking, raw specs and FLOPS aint a big deal to me.
 

NotLiquid

Member
Wasn't the narrative that Sony made money back on every PS4 when a consumer purchased a single game and PSN Plus?

Yeah, it was. I'm wondering whether there might be a similar rationale Nintendo have going for them rather than outright making money back on every piece of hardware sold.
 
My interpretation: Either they've struck some exceptional deals with AMD or they are not aiming much higher than PS4. I'm fine with that btw. As long as it's modern technology and forward thinking, raw specs and FLOPS aint a big deal to me.
Hm if, BIG if, the thing about AMD's fuck-up is indeed true, i can see Nintendo getting some really *exceptional* deals in return for the impact on NX's production.
 

javac

Member
Yeah, it was. I'm wondering whether there might be a similar rationale Nintendo have going for them rather than outright making money back on every piece of hardware sold.

It makes sense too because as we all know, Nintendo games have crazy attach ratios, even more so at launch. They'll probably have a pack-in game too in order to demonstrate the unique aspects of the system but I can see people pick up Zelda in droves too and if the system encourages local co-op, controllers and other accessories.
 

KingSnake

The Birthday Skeleton
Zelda will have more than 5 years of development when it will release. That would make it not to be the best driver for profitability, the costs must be pretty big for it.

Edit: I think the question and the answer were pretty clear, they talk about the hardware as a loss-leader and how it won't be the case for NX. Nothing about games or paid services.
 

TheJoRu

Member
That's the one thing that Nintendo is very welcome to ignore for at least the NX gen.

I don't think they'll charge for online, but eventually I'm expecting something like a "My Nintendo Premium" subscription service that grants you special monthly rewards, akin to Games With Gold and PS+, but not limited to games but also special items (Miitomo clothes etc.) and/or DLC.
 

Plinko

Wildcard berths that can't beat teams without a winning record should have homefield advantage
My interpretation: Either they've struck some exceptional deals with AMD or they are not aiming much higher than PS4. I'm fine with that btw. As long as it's modern technology and forward thinking, raw specs and FLOPS aint a big deal to me.

Third option is they're selling it at a higher price, but I'm not sure they'd go that route.

One thing about Kimishima--he's right about the 3DS lineup. It's very strong this year, and there are probably titles we haven't heard about yet.

jeffers said:
Where/what happened with AMD? Bad yields or something?

Poster in another thread said his friend at AMD said the plans for NX and the next Xbox revision were mixed, which screwed up production.
 

javac

Member
Zelda will have more than 5 years of development when it will release. That would make it not to be the best driver for profitability, the costs must be pretty big for it.

Edit: I think the question and the answer were pretty clear, they talk about the hardware as a loss-leader and how it won't be the case for NX. Nothing about games or paid services.

If this is aimed at me in regards to Zelda, I just inserted the name of a big, bankable Nintendo IP so feel free to replace it with any of the others :p
 

BY2K

Membero Americo
We are planning for a large part of the great decline in the sales of #WiiU hardware being made up by #NX sales.

How can Nintendo expect the NX to pick up the slack of the Wii U in 2016 in ONE MONTH!?
 

MuchoMalo

Banned
That's the one thing that Nintendo is very welcome to ignore for at least the NX gen.

I disagree. Nintendo should do it, but better. Four words: Virtual Console On Demand. You know you'd pay $50/year for online if it gave you full access to every VC game. Tell me that's not worth it. Just try.

... Well, assuming that VC is updated regularly of course. Either way, just looking at PSN they're obviously going to do it. Even making a tenth of what Sony made would be huge for them.

Poster in another thread said his friend at AMD said the plans for NX and the next Xbox revision were mixed, which screwed up production.

LOL

Yeah, right. In one way it would be a good thing since it would almost certainly confirm 14nmFF (which I now believe is actually the most likely possibility after considering all factors), but that's too ridiculous to believe.
 
I disagree. Nintendo should do it, but better. Four words: Virtual Console On Demand. You know you'd pay $50/year for online if it gave you full access to every VC game. Tell me that's not worth it. Just try.

... Well, assuming that VC is updated regularly of course. Either way, just looking at PSN they're obviously going to do it. Even making a tenth of what Sony made would be huge for them.
They shouldn't do it if they don't get or have many MP focused games. It has to be viable, having games like Destiny or The Division for example, their own games might be not enough.
 

KingSnake

The Birthday Skeleton
How can Nintendo expect the NX to pick up the slack of the Wii U in 2016 in ONE MONTH!?

Over 2 mio. consoles sold at launch in March sound pretty impossible, so maybe he means financially the launch (hardware and software) will bring enough income for a flat year/year? Still kind of very optimistic assumption.
 
PS4 was being sold at a loss as far as I remember.

The first batch of a console is general more expensive. But Sony made the statement that they the typical launch buy is profitable.
After a few months Sony released a statement that the Playstation 4 is profitable.
 

maxcriden

Member
Next, about cost, we aren't thinking of the hardware being unprofitable. When the WiiU launched the exchange rate was that of a very strong yen, and so that we don't have that kind of a situation again, launching as a loss-leader won't be what makes up our business, so that's how we're progressing with NX development.

So, when Kimi-san says hardware should be profitable for NX, does that make it likelier to be a more or less powerful device w/ or w/o a more or less powerful gimmick? I guess it's hard to know, right?

Q11. While the forecasted sales for the WiiU this fiscal year are extremely weak, NX contributions to profitability seem to be included appearing to be numbers showing that, "We have some confidence in the NX, which will start with a sprint." Do you believe that the new NX will be able to cover for the decline of the WiiU?

A11. We have forecast WiiU sales of 800,000 units for this fiscal year, a decline from 2.4m units last fiscal year. In terms of what will cover for it, essentially, the NX and smart device businesses will be central, and also, the download content business is included.

We are planning for a large part of the great decline in the sales of WiiU hardware being made up by NX sales.

A large part of the decline in sales of Wii U hardware--do they mean just for this FY? Because I would suspect if NX launches in March it would probably sell more units than Wii U did in an entire year, no?

Also, the investor here notes NX contributions to profitability being included in forecasts, is that true? For some reason I'd thought not.

Also sounds like lots of DLC coming this year.

Over 2 mio. consoles sold at launch in March sound pretty impossible, so maybe he means financially the launch (hardware and software) will bring enough income for a flat year/year? Still kind of very optimistic assumption.

I'm trying to understand this also. Where does the 2M consoles come from? Last year's Wii U sales minus this year's expectations?

Didn't Wii U sell 1.5M in its first six weeks? http://www.ign.com/articles/2013/01/11/how-successful-was-the-wii-u-launch
 

maxcriden

Member
I expect a lot of Wii U DLC. Maybe Mario Kart 8 will get a battle mode?!?

With Splatoon DLC done (though didn't the producer in his January speech hint there might be more to come), and Smash DLC done, I'd be surprised if they went back to MK8. I'd expect MK9 to have a more traditional Battle Mode perhaps (don't forget, MK8 had one, just not the normal one).

As for additional DLC, I have to expect it to be on evergreen titles from the last 1-2 or so years. I imagine other teams have long since moved on to NX projects. I also specifically expect the 3DS games rather than Wii U will be the focus of additional DLC. Despite Wii U potentially only getting Paper Mario in H2 at retail, and 3DS having more unannounced FP games, at least one of which I expect to see this year (N-Stars*), I think with 3DS >>>> Wii U in sales and software they will focus on DLC there. Especially since DLC has been uber successful for them especially on 3DS IIRC.

*And I'm still thinking "big budget" means Mario Party-esque game could be less likely, at least in the traditional sense of that game, even with amiibo functionality, so perhaps it's a very different kind of Mario Party than we're used to seeing, maybe representing a revamp for the series?
 

KingSnake

The Birthday Skeleton

maxcriden

Member
Yes, 2016 Wii U - 2015 Wii U.

And now we're talking about maximum 4 weeks for a launch in a non-holiday period. We don't even know when in March it will launch.

Ok, I see what you're saying. I wonder, was 2015 actually one of the better years of Wii U sales? I realize I could easily look that up, probably. *sweat emoji*

Yeah, it does seem quite optimistic. Maybe this is why he said "a large part of the great decline in the sales of WiiU hardware being made up by NX sales" and not the entirety. Hm.
 

Mpl90

Two copies sold? That's not a bomb guys, stop trolling!!!
Yen exchange was the official excuse for being in red in that period. Look up the investor info from January 2013 for example.

Good point.

Exchange rates as of December 31st, 2012 (after Wii U launch)
USD: 1 USD = 86.58 Yen
Euro: 1 Euro = 114.71 Yen

Exhance rates as of March 31st, 2016
USD: 1 USD = 112.68 Yen
Euro: 1 Euro = 127.70 Yen

Forecast for March 31st, 2017 (NX launch period)
USD: 1 USD = 110.00 Yen
Euro: 1 Euro = 125.00 Yen
 

Plinko

Wildcard berths that can't beat teams without a winning record should have homefield advantage
WTF? lol, there's no way that's real. That's bad sitcom material right there.

I disagree. Nintendo should do it, but better. Four words: Virtual Console On Demand. You know you'd pay $50/year for online if it gave you full access to every VC game. Tell me that's not worth it. Just try.

... Well, assuming that VC is updated regularly of course. Either way, just looking at PSN they're obviously going to do it. Even making a tenth of what Sony made would be huge for them.



LOL

Yeah, right. In one way it would be a good thing since it would almost certainly confirm 14nmFF (which I now believe is actually the most likely possibility after considering all factors), but that's too ridiculous to believe.

...

What.

I agree--it doesn't sound plausible.

I think they might announce a Captain Toad 2 for Wii U also.

This would thrill me. I expect no Wii U games to be announced, sadly.
 

thefro

Member
"We are planning for a large part of the great decline in the sales of WiiU hardware being made up by NX sales."

That doesn't mean they're going to sell 1.6 million NX units in March, but that they'll sell a "large part of that" in March.
 

KingSnake

The Birthday Skeleton
After this Q&A is even more confirmed that Wii U is dead and buried on Nintendo's side. They still bank on 3DS though. So I wouldn't expect any new Wii U game and I wonder if Paper Mario will still happen.
 

z0m3le

Banned
Over 2 mio. consoles sold at launch in March sound pretty impossible, so maybe he means financially the launch (hardware and software) will bring enough income for a flat year/year? Still kind of very optimistic assumption.

3DS did 3.4 million in this same time frame... is it really impossible to do 2.4 million with a console launch when even Wii U sold over 3 million with just nintendoland and nsmbu? This thing is launching with Zelda and a slew of other game announcements.
 

TunaLover

Member
After this Q&A is even more confirmed that Wii U is dead and buried on Nintendo's side. They still bank on 3DS though. So I wouldn't expect any new Wii U game and I wonder if Paper Mario will still happen.
They need PM happen, I need something to play by november. I hope they show a trailer or something in the E3
 

Peru

Member
3DS did 3.4 million in this same time frame... is it really impossible to do 2.4 million with a console launch when even Wii U sold over 3 million with just nintendoland and nsmbu? This thing is launching with Zelda and a slew of other game announcements.

That's the funny thing. We don't even know if it's console, handheld, or both released at the same time. So speculating on numbers is futile.
 

maxcriden

Member
After this Q&A is even more confirmed that Wii U is dead and buried on Nintendo's side. They still bank on 3DS though. So I wouldn't expect any new Wii U game and I wonder if Paper Mario will still happen.

I think they wouldn't want the badwill of no games in H2, and Paper Mario would probably get lost in the shuffle for NX if it came out near launch.

Unless you meant it'd be outright cancelled?
 

KingSnake

The Birthday Skeleton
I think they wouldn't want the badwill of no games in H2, and Paper Mario would probably get lost in the shuffle for NX if it came out near launch.

Unless you meant it'd be outright cancelled?

I still think we will get Paper Mario, but seeing how they talk about Wii U as about someone already dead, I wouldn't be surprised if it will be quietly canceled.
 

MuchoMalo

Banned
"We are planning for a large part of the great decline in the sales of WiiU hardware being made up by NX sales."

That doesn't mean they're going to sell 1.6 million NX units in March, but that they'll sell a "large part of that" in March.

1.6 million worldwide at launch is an extremely low bar. If they can't even manage that, it'll be the flop of the century.


Edit: Sorry for the double post. I meant to edit but forgot.
 

KingSnake

The Birthday Skeleton
3DS did 3.4 million in this same time frame... is it really impossible to do 2.4 million with a console launch when even Wii U sold over 3 million with just nintendoland and nsmbu? This thing is launching with Zelda and a slew of other game announcements.

We're talking about maximum 1 month sales (it could be even one week depending when it actually launches). Wii U didn't sell 3 million in one month. A lot of the 3ds sales came from Japan, which is a totally different market now. Even more so for consoles.

That's the funny thing. We don't even know if it's console, handheld, or both released at the same time. So speculating on numbers is futile.

Seeing as NX isn't expected to impact 3ds sales, just Wii U's according to Kimishima, I think it is safe to say that the one launching in March 2017 is a console.
 

ChaosXVI

Member
I still think we will get Paper Mario, but seeing how they talk about Wii U as about someone already dead, I wouldn't be surprised if it will be quietly canceled.

I'm sure we'll still get it, especially with it having been revealed for the first time so recently. At the worst it would get moved to the NX, but I expect them to try to use PM as the lone Holiday 2016 title to try and holdover Wii U owners until NX.

...Not that it will though, everyone I know that likes Paper Mario is completely soured on the series since the last one.
 

The_Lump

Banned
Hm if, BIG if, the thing about AMD's fuck-up is indeed true, i can see Nintendo getting some really *exceptional* deals in return for the impact on NX's production.

Yeah could be I guess. Like you say it's a big "if" though as that AMD rumour sounds too hilarious to be true.

Third option is they're selling it at a higher price, but I'm not sure they'd go that route.

Yup, indeed it's an option. Personally I don't see that happening - but all bets are off with Nintendo hardware :)
 

z0m3le

Banned
We're talking about maximum 1 month sales (it could be even one week depending when it actually launches). Wii U didn't sell 3 million in one month. A lot of the 3ds sales came from Japan, which is a totally different market now. Even more so for consoles.



Seeing as NX isn't expected to impact 3ds sales, just Wii U's according to Kimishima, I think it is safe to say that the one launching in March 2017 is a console.
Quickly to your last point, not sure how many 3DS devices Nintendo expects to sell in March.

Taking Japan completely out of the equation. (sold 1.06 million in japan up to march 31st 2011) Nintendo managed to sell 2.55 million 3DS units from march 25th (Europe) march 27th (America) and march 31th (Australia) 2.55 million in less than a week.
 

Peru

Member
Seeing as NX isn't expected to impact 3ds sales, just Wii U's according to Kimishima, I think it is safe to say that the one launching in March 2017 is a console.

I wouldn't read his statements that way. He has more faith in the sales of 3DS this fiscal year, yes.
 

KingSnake

The Birthday Skeleton
Quickly to your last point, not sure how many 3DS devices Nintendo expects to sell in March.

Taking Japan completely out of the equation. (sold 1.06 million in japan up to march 31st 2011) Nintendo managed to sell 2.55 million 3DS units from march 25th (Europe) march 27th (America) and march 31th (Australia) 2.55 million in less than a week.

If it's a handheld, yes, it's feasible. I still think that everything points toward a console. From the Zelda being delayed to be the flagship game to Kimi's comments about Wii U forecast.

I wouldn't read his statements that way. He has more faith in the sales of 3DS this fiscal year, yes.


He specifically said that they reducing Wii U forcast because of NX. Nothing about 3ds. Then he doubled down on it in the Q&A. Come on.

Edit: Look how this presentation is structured when talking about the next FY:

https://www.nintendo.co.jp/ir/en/library/events/160428/04.html

1. Talks about 3ds and how they plan to revitalize it through major releases.
2. Talks about NX launching in March 2017
3. Talks about greatly reducing Wii U production and shipping:

We plan to greatly reduce the amount of Wii U systems produced and shipped for the fiscal year ending March 2017, compared to the fiscal year ended March 2016.
Taking into consideration demand for the new NX hardware and overall demand forecasts, we plan to ship 800,000 units.

See the difference in tone between revitalizing 3ds and killing Wii U?
 
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