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Nintendo posts $160M net income, cuts 3DS/Wii U/NDS/Wii forecasts
- Thread starter Parmenides
- Start date
PS3 as a winner when they lost that much money with it?
And the EU market cratering more than explains the 3DS failing to meet DS's expectations.
3DS Q4 2011 had bigger releases than Q4 2012.
Captain Smoker
Member
The european market slowed down like the US-market.
But we're in a transition phase, so this is normal.
Sure. But I've never seen any indication that the UK market is collapsing compared to other european countries.
Do you have the numbers for 2010?
That might be a better indicator than just last year.
The economic situation of the EU didn't change that much between 2012 and 2011 anyway.
"Owing to the fact that the Wii U hardware sales have a negative impact on Nintendo's profits, the operating loss was 5.8 billion yen," Nintendo said. "As a result of exchange gains totaling 22.2 billion yen due to the depreciation of the yen at the end of calendar year 2012, however, ordinary income was 22.7 billion yen and net income was 14.5 billion yen."
http://www.eurogamer.net/articles/2013-01-30-nintendo-cuts-wii-u-sales-forecast-by-1-5-million-says-console-having-a-negative-impact-on-profits
http://www.eurogamer.net/articles/2013-01-30-nintendo-cuts-wii-u-sales-forecast-by-1-5-million-says-console-having-a-negative-impact-on-profits
Visualante2
Member
4 million is more reasonable. But I wonder if they will struggle at that pace because they are sitting on shelves.
Baki
Member
Well I only said that because I'm not sure how much they overshipped to Europe! lol
Honestlly, I expect 3.5-3.6M by March and that's on the more healthier side of things. Right now, the WiiU is competing with the Vita in Europe and will probably do sub 100K numbers in the US in the following months.
Aad
Member
Very interesting. Sources?
, after E3 i'll decide what to buy, wiiu or ps4....
SpinningBirdKick
Banned
That's pretty hefty cuts to the Wii U hardware and software forecasts.
Things are looking particularly grim as we'll be entering the typical Nintendo post launch software drought period.
Winning new hearts and minds is going to be especially difficult for them once NextBox and PS4 details begin to be drip fed to core consumers through E3 and beyond.
I'll be amazed if we don't see a Wii U price cut before the summer is out.
Things are looking particularly grim as we'll be entering the typical Nintendo post launch software drought period.
Winning new hearts and minds is going to be especially difficult for them once NextBox and PS4 details begin to be drip fed to core consumers through E3 and beyond.
I'll be amazed if we don't see a Wii U price cut before the summer is out.
So the market IS impacted by the economy!
From a high in 2008 each country lost a good chunk in 2008-09 and 09-10
I mean nearly 25% loss between 2008->10 for the UK alone.
StreetsAhead
Member
Sold to retailers, not retail sales to consumers.
Hum, yes? But your original point was that the UK is doing much worse than other european countries. It's not the case at all, so yes, estimating 0.6M WiiU sales in Europe when there's been 0.08 in the UK seems rather unrealistic...
they shipped less WiiU in the UK than in France that should tell you what they expected in that market however.
So it's not unreasonable to expect that it did better where they shipped more.
RamzaIsCool
The Amiga Brotherhood
I am looking to raw hardware and software numbers, since when do we add profitability to this? Besides Sony isn't the only one active on the PS3, so if you go that route you have to look to the big picture!
Didn't NSMB2 got released last quarter. To my knowledge it doesn't get much bigger then that. Also last years titles like MK7 have crazy legs, they should be as strong this year and next year and the year after that as it was last year.
NSMB2 got released in July, so Q3
NSMB2 was Q3. The 3DS had Paper Mario Q4
If the economy is an excuse tell that to all the tablets flying off the shelves worldwide. The home consumer electronics market is having one of the biggest renaissance in years. Companies like Apple & Samsung ranking in billions. iPad Mini's couldn't even keep in stock across the world while WiiU sat unsold at the same stores. People just aren't interested in buying video game systems as much anymore, not that they can't afford them.
the 1rst part is on an article that basically validated most of what that 01net article said about the design process at Nintendo I can't find it anymore though...
about the prototypes :
http://www.wired.com/gamelife/2009/03/gdc-nintendos-u/
http://kotaku.com/5184237/nintendo-shows-unreleased-dual+card-dsi-gba-touch
that's all I could find now,
I should keep bookmarks of interesting stuffs :lol
I just exclaimed surprise that looking at the financials someone could say that, nothing else.
After all that's the point of a victor in a generation, no?
The economy serves as an average of how every company is doing, there's outliers and some doing way better than others, for the average company though it's a good way of seeing how they perform.
Nintendo is no longer an outlier.
Sony certainly isn't either.
And tablets and smartphones are more personal computers than game consoles anyway.
Also people buy stuffs to perform jobs, as it is WiiU isn't performing a job people want fullfilled so they're buying something else.
The problem is deeper than just "games" and "price".
But tablets are not consoles are they?people are buying tablets to replace their laptops...
I don't know if this is a particularly positive point for the 3rd party eco-system or whatever, but it's quite different from what I expected. The pessimist in me imagined NSMBU+NL to account for well over half of total software sales. Interesting to know how the other ~7.35m software sales are shared out across the board.
They offer a much better value
Portable Facebook and Angry birds
and kids want iPad's, it is a status symbol, not Vita or 3DS
0.2M in France + UK, by far the two largest markets for console sales, and by far the most Nintendo-prone compared to other countries. 0.6 seems ridiculous, but I guess we'll see when they release actual sales numbers soon.
Frankfurter
Member
We however do know that WiiU did better in France than in the UK (120k vs. 80k), which means that the UK, for WiiU, per definition is a far less important market atm than what is usually the case. It's virtually impossible for the UK to be the usual ~30% of the European market.
I tend to agree that 600k WiiU until the end of 2012 is too high though. I'd expect it to be at sth. like 400-500k.
Kids aren't begging their parents for iPad mini's to replace a laptop. They can replace laptops for adults. But kids going insane over iPod touch's,iPad Mini's, & Kindle Fires have nothing to do with laptops, and come at the expense of traditional game systems.
There will always be a traditional game market, but it is time to accept it has shrunken to a smaller market than it was pre-Tablets/Smartphones and won't likely ever come back to the levels it was at.
Well Frankfurter said it better than I did.
Also my remark about the economy is more geared toward 3DS failing to meet DS.
WiiU would not be lighting any fire, economy or no economy.
And France is way more pro Nintendo than the UK or is that they're less pro MSFT?
They aren't begging them to buy that to replace their pokemon playing machine either.
They likely never asked for a pokemon playing machine either. Most kids under 10 are more interested in Angry Birds Star Wars than Pokemon these days it seems.
None of this is the case in Japan but in America and Europe it is clearly the case now.
We'll see, so far Pkmn didn't see a huge drop off like you imply it did either.
I am not saying there is a drop-off, but I am saying the reason 3DS hardware is doing less than expected in the west is due to tablets, not due to the economy since the economy generally does not hurt home electronics, in the past video games sales did really good in recessions.
I don't remember having video games in 1975 or in 1929...
Profit is less than they predicted though.
Hopefully, they will pinpoint the reasons for Nintendo's lack of sustainable success. And these are primarily a lack of relevance in the hardcore market. Nintendo has invested in making its console capable of receiving current-gen (WiiU, Orbis, Durango) titles, why not take advantage of that and cater to the very audience these efforts were made for ?
The profit is also a mixed-bag, as it's a net profit with an operating loss... Not sure what to make of it, as I haven't been paying close attention to financial reports for a while.
Nope. The 'victor' is the one that shifts the most units of hardware. Right or wrong, that's how it's always been measured.
I guess that's about as close as you'll get for informations regarding "investors' reaction".
Psychotext
Member
bigtroyjon
Member
Stock is going to drop, operating income forecast slashed big time. Net income is due to the Yen, which would have already been accounted for in the price.
MoogleWizard
Member
So the myth that the UK is still the second biggest market or in any way representative for Europe can finally be buried? Are there any numbers for Germany/France?
The cut in hardware is a bit surprising, the Wii U already sold 3.06 million units and they don't even expect to sell one million in the next two months ww? Sales must be really front-heavy then.