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Nintendo 1H 2012 results - $367M operating loss, 5.06M 3DS, 5.5M Wii U forecast

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REVELAITONS! \o/
 

Ollie Pooch

In a perfect world, we'd all be homersexual
Pricing is killing Nintendo in my house. My kid won't save $40 for a 3DS game because he's been burned not once, but twice (I let him make his own mistakes) at that price point and it's completely soured him on it. Couple that with the fact that he just picked up the kindle version of Minecraft for less than $20 dollars and Nintendo has very little hope of reaching him again.

I'm not saying that's how it is for everybody, but Nintendo has to figure out a way to get their software prices down or I see my son's 3DS getting sold on craigslist. He's also entirely uninterested in Paper Mario. Wanna take a guess at how many 3DS games are on his christmas list?
We'd buy a lot more Nintendo games in mine if the prices were more reasonable. You think $40 is high? Try here in Australia where 3DS RRP is equivalent to US$70. Older titles barely drop in price, either. Surprised to see them soldier on with the current pricing model when it's obviously hurting them.
 
This is a stockholder's reasoning, i.e. Basically, anything but constant growth is bad. From a video game/support standpoint, it's doing okay, though. No, it's not doing numbers like DS is about to do, but no one reasonably expected it to, either.

Really? Did you miss all the launch hype threads and predictions before the pricing was announced? "OMG glassless 3d!!!" and such.
 

antonz

Member
NCL needs to realize they are losing a lot of sales in US to the DS. Every month roughly half of Nintendo handheld sales are DS,DSi.

Japan doesn't have that issue because the line was effectively killed.
 
Q&A

TVii for usa considering similar service in jp, need different service in eu and plan to announce that in detail in near future

WiiU loss on hardware will continue this fy, but next yr generate profit, cannot say when that will occur,focus is expanding software sales

said nintendo's focus is on game services, synergy with web and increased user satisfaction (rather than other services)

Well they do confirm the sell at a loss thing on the last page.

Thought it was confirmed already, but yeah.
 

pvpness

Member
We'd buy a lot more Nintendo games in mine if the prices were more reasonable. You think $40 is high? Try here in Australia where 3DS RRP is equivalent to US$70. Older titles barely drop in price, either. Surprised to see them soldier on with the current pricing model when it's obviously hurting them.

I've been expecting a branching line of titles that would allow them to price lower without it appearing desperate but they're holding fast. I imagine they won't go into panic mode (in NA) until after they see how the holidays play out, if at all.
 

Ollie Pooch

In a perfect world, we'd all be homersexual
I've been expecting a branching line of titles that would allow them to price lower without it appearing desperate but they're holding fast. I imagine they won't go into panic mode (in NA) until after they see how the holidays play out, if at all.
Yeah, I've been expecting the same - even a 'greatest hits' or something like that to release a more budget line. They're priced ridiculously high, considering the price of console gaming here. The library is pretty thin - in PAL regions at least - and the price of entry is huge.
 

wcw

Neo Member
corporate losses can be funny they sometimes write off other losses from quarters and such. I don't know it seems like they are taking Wii-U operating costs plus R and D possibly.
 
corporate losses can be funny they sometimes write off other losses from quarters and such. I don't know it seems like they are taking Wii-U operating costs plus R and D possibly.

They were manufacturing WiiU's last quarter so all the consoles they made get booked into inventory at the price they will sell them for to retailers. Since that price is lower than it cost to make them they book the loss when they roll out of the factory.
 

jvm

Gamasutra.
Just Dance, Skylanders, Lego " " , and Epic Mickey 2
I just don't see those as system sellers after six years into the Wii lifetime.

That said, I've written several times in my columns that *someone* should be doing Skylanders bundles. There is a PS3 one in EU, I think, but why not something more modern than the Wii here in the US? I just don't get Sony and Microsoft steering clear of what has to be a winning formula. :(
 
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Vita vs DS

XL doing decently enough; holiday will mean they can keep that momentum.

Although the sales of the hardware have increased after the launch of the Nintendo 3DS XL system, the U.S. was the only market out of the three regions in which the sales boost did not exceed that of last year’s markdown. Sales almost recovered to the level of the previous year in September and Nintendo 3DS has performed better in October. We are working hard to further develop the sales.

Reggie, Reggie, Reggie.
Ninty sounds most down about US; Europe showing some good buds; also those 3DS software sales in Europe are fantastic. You can see why their so down on US when you compare list for list.

Nintendo also not missing how bit AC will be on download; nice to see they've identified that.

Fire Emblem: Awakening sold more than Kid Icarus: Uprising.

Wow.

Its launch week probably did :p FE was huge. Kid Icarus meanwhile was a new IP (okay its sort of not, but it is). Good sign for FE fans though.
 
I just don't see those as system sellers after six years into the Wii lifetime.

That said, I've written several times in my columns that *someone* should be doing Skylanders bundles. There is a PS3 one in EU, I think, but why not something more modern than the Wii here in the US? I just don't get Sony and Microsoft steering clear of what has to be a winning formula. :(

Nintendo probably got in there with a deal for exclusive bundle for the USA
 

jvm

Gamasutra.
Nintendo probably got in there with a deal for exclusive bundle for the USA
Yeah, it's just a shame that the Wii U is launching and therefore inappropriate for bundling. Retailer-created bundles aren't out of the question, but launch supply is probably so thin, it's unreasonable.

Ah well.
 

donny2112

Member
Really? Did you miss all the launch hype threads and predictions before the pricing was announced? "OMG glassless 3d!!!" and such.

Was referring to after launch, but, yeah, the pre-launch hype was pretty strong, even from me. Didn't take long to see that wasn't going to pan out, so belittling that it's going to fall behind DS 2 years after launch seems to be either 1) a very late observation or 2) unrealistic expectations for anytime from a couple of months past launch to now.

NCL needs to realize they are losing a lot of sales in US to the DS. Every month roughly half of Nintendo handheld sales are DS,DSi.

While that certainly isn't good news for the 3DS, it is good new for Nintendo handheld environment. Also reinforces the reality that $99 is the sweet spot for handhelds in the U.S.
 
damn, with the Wii falling off, 360 dominates the US even more than the PS3 dominates Europe. 9 of the top 15.

Yeah, it's amazing how MS has gone from a contender to the dominant force in the US. And with smartglass, subsidizing their console, etc I don't see that changing anytime soon.

Also, funny to see how Sony is dominant in EU (would probably be even more significant without the UK), MS is dominant in the US, and Nintendo is dominant in JP. They all need to focus on their weak areas for next generation. MS shouldn't bother with Japan and just focus on expanding to EU while keeping the US and UK market domination. Nintendo should try to get the core and keep the casual they got with the Wii. Sony needs to regain confidence in the US and get some system sellers in Japan. Will be interesting to see.

Nintendo definitely should have made a playstation mobile kind of service with the 3ds if they truly thought that

1) PSM is off on the wrong foot, starting with the price of the software which can be more than twice as much compared to iphone/steam. They also supposedly do not allow free, ad based games to be published, which is stupid
2) Nintendo say they don't see it as a threat. I don't think they will try to develop such a service
 

Somnid

Member
I love the way Iwata talks. After dominating the industry for so long he feels it's Nintendo's personal responsibility to maintain not just Nintendo's products and profits but the entire industry.

Iwata said:
The Nintendo 3DS system itself did grow in sales and we sold approximately 2.5 times more Nintendo 3DS software units than we did last year, but Nintendo 3DS is not strong enough yet to prevent the overseas markets from shrinking.
 
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Looks like Wii Virtual Console was an instant success, then WiiWare did almost nothing to really push past that. And in the end, Nintendo keeps ignoring VC and Wii died off as a viable digital platform.

Think they learned thier lesson?
 
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