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Nintendo announces Q1 results - $220 Million Quarterly Loss, 1.86M 3DS

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Drago

Member
Sadly that's not going to happen with the way things are going. Western developers just don't care and short of Nintendo funding the development of some games I doubt we'll see a change. Even then the end result might not be good because I doubt western developers will put their A or even their B team on the game. The niche Japanese games are what we have to hope for. I don't mind them to be honest. There is no telling what would click. Thing is many Japanese developers seem like they don't even try or worse yet still don't design games with the thought of trying to sell it outside of Japan at the start of development after all this time. Well the smaller companies anyway. Maybe localization really is to much but then that should fall on Nintendo to try to work something out so their platform doesn't falter outside of Japan when they can't put out games themselves.
Yeah, I said in another post that constant Western support won't be coming for a while, if ever. Maybe it's just me, but it feels like no one is localizing a damn thing. Why not? I just hope that more stuff starts coming in 2013.

I need to get a JP 3DS, or move to Japan someday... so much better for games I like to play :p
 
the 'other' region is surprisingly high. i thought the machine was doing worse in pal regions than it was in north america.

It would be doing better if NoJ worked with to NoA gauge gamer interests and allowed for more localized titles. Or work with the localization for third party titles, help with marketing arrangements and bring them to NA and EU.
A lot of conjecture is used to reason that 3DS sells well enough vs. amazing (in territories not named Japan), because it needs it's own Pokemon or NSMB2. I'd argue, that's partially the case.
The larger part of why 3DS is struggling to attain massive momentum is region lock. A lot of games aren't being brought to EU/NA - both from third parties and Nintendo themselves. Where is Fire Emblem, Animal Crossing, Monster Hunter, Gundam, EX Troopers, Bravely Default, Project X Zone, Fantasy Life, Calciobit, among others for a timely NA/EU launch, some of these even at all?

The diversity of handheld games and their success often comes from Japan and their studios. With no way to play these games, other territories are lacking a stronger library. Nintendo of America needs some of the blame for lower sales, they aren't doing much to bring anything over and when they do, it's usually way late.

Except for NSMB2, they're moving fast with that.
 
Except for NSMB2, they're moving fast with that.

And Kid Icarus.
And Mario Tennis.
And Super Mario 3D Land.
And Mario Kart 7.
And (presumably) Pokemon BW2 (fastest Western release in ...ever?)
And seemingly Luigi's Mansion 2, Paper Mario.

Or, basically they're slow on 3 games that require the most amount of localisation.
 

Drago

Member
Animal Crossing is taking a while and those games usually have close worldwide releases, yet Kid Icarus had a buttload of text/voice to localize and came out everywhere at the same time.

It makes no sense to me that AC and other games are taking a while, when other games with a lot of localization are coming much sooner. The only reason I think they are taking so long is because Nintendo is keeping games back so they have something for Spring next year.
 
Animal Crossing is taking a while and those games usually have close worldwide releases, yet Kid Icarus had a buttload of text/voice to localize and came out everywhere at the same time.

It makes no sense to me that AC and other games are taking a while, other than Nintendo saving it so they have something for Spring next year.

Maybe - or the script still isn't set yet. Or they have other priorities at the moment (getting Pokemon and Paper Mario ready, for example). Or they want to spread out their releases, especially one that will probably sell well no matter when it's released? You can't efficiently do simultaneous localisation on every title. It's just not feasible without a large staff.

Like, I just don't understand. You're not entitled to Worldwide Releases. It's nice when they can happen, but very often it ends up delaying the product for every region. What difference does it make to anyone if Animal Crossing is released 6-8 months later than Japan? Are you worried about spoilers?

I just want to know what big, important games have been unconfirmed for localisation? Or, is it just likelihood?
 
Here's a Regional Breakdown of Sales (Unit: Million)

Code:
JAPAN


   NDS        HW      SW              3DS           HW      SW   

(Oc-Dc)04    1.45     2.10          (Ja-Mr)11      1.06     2.18

(Ja-Mr)05    0.67     1.72          (Ap-Jn)11      0.21     1.03

(Ap-Jn)05    0.54     2.00          (Jl-Sp)11      0.86     0.8

(Jl-Sp)05    0.96     3.31          (Oc-Dc)11      2.53     6.27

(Oc-Dc)05    2.08     9.37          (Ja-Mr)12      1.19     3.03

(Ja-Mr)06    1.20     6.84          (Ap-Jn)12      0.92     2.96


   LTD       6.91     25.34            LTD         6.76     16.26



(Ap-Jn)06    2.34     9.08

Code:
AMERICAS


   NDS        HW      SW              3DS           HW      SW   

(Oc-Dc)04    1.36     2.89          (Ja-Mr)11      1.32     3.94

(Ja-Mr)05    0.83     1.86          (Ap-Jn)11      0.11     1.84

(Ap-Jn)05    0.24     2.00          (Jl-Sp)11      0.70     1.41

(Jl-Sp)05    0.44     2.56          (Oc-Dc)11      3.34     6.72

(Oc-Dc)05    1.75     7.82          (Ja-Mr)12      0.52     2.67

(Ja-Mr)06    0.49     3.70          (Ap-Jn)12      0.42     2.47


   LTD       5.11     20.83            LTD         6.41     19.05



(Ap-Jn)06    0.78     4.38

Code:
OTHER


   NDS        HW      SW              3DS           HW      SW   

(Oc-Dc)04    0.03     0.02          (Ja-Mr)11      1.23     3.31

(Ja-Mr)05    0.92     1.90          (Ap-Jn)11      0.40     1.67

(Ap-Jn)05    0.60     1.33          (Jl-Sp)11      0.79     1.38

(Jl-Sp)05    0.79     2.10          (Oc-Dc)11      2.49     6.92

(Oc-Dc)05    1.76     5.42          (Ja-Mr)12      0.38     2.25

(Ja-Mr)06    0.61     3.50          (Ap-Jn)12      0.53     1.96


   LTD       4.71     14.27            LTD         5.82     17.49



(Ap-Jn)06    1.42     4.89



Code:
NDS: 1st-HALF  2006

         JAPAN     AMERICAS   OTHER     TOTAL

HW       3.54       1.27      2.03      6.84

SW       15.92      8.08      8.39      32.40

  


3DS: 1st-HALF  2012

         JAPAN     AMERICAS   OTHER     TOTAL

HW       2.11       0.94      0.91      3.96

SW       5.99       5.14      4.21      15.35
 
Code:
NDS: 1st-HALF  2006

         JAPAN     AMERICAS   OTHER     TOTAL

HW       3.54       1.26      2.03      6.83

SW       15.92      8.08      8.4       32.4

  


3DS: 1st-HALF  2012

         JAPAN     AMERICAS   OTHER     TOTAL

HW       2.11       0.94      0.91      3.96

SW       5.99       5.14      4.21      15.34


3DS is comparing somewhat favorably here considering DS had the Lite, NSMB, Prime Hunters, Tetris DS and western releases of Brain-Age and Big Brain Academy all within this window. The only release 3DS had of note was really Kid Icarus.

Channeling my inner Takao, I also wonder what sort of figures the eShop is managing?
 

Elios83

Member
Are the usual sales graph with all the consoles (competition included) already available?

About the results, although they made a loss they're betting on 3DS being profitable for the rest of the year (although we don't know to which extent) to make up for all the other costs and expenses. Let's not forget that Wii U launch will cost a lot of money for the marketing campaign and it's unlikely they're going to sell the console at a profit, they'll try to sell it around break even point (299$). Also the yen's strenght is hurting all japanese companies and things could get ugly if (further) bad news arrive from the euro-zone.
So things are not so easy, they can still hit their target but there's the risk of a second annual straight loss like analysts said.
About 3DS, sales have started to fall behind DS by a significant margin (6.83m vs 3.96m during the first half of 2006/2012). After that DS started to post record numbers all around. We'll see how well the XL and the new games will be received.
 

djtiesto

is beloved, despite what anyone might say
3DS is kicking ass in Japan (really, all that's important for me) and will do fine in America... the last few years of the videogame industry was unprecedented growth year after year, and now that things are getting back to "regular" levels, so many people are spelling doom. The GBA didn't do nearly as well as the original GB or the DS, would you guys consider that a "failure"? I could see 3DS at least getting to GBA levels.
 

jvm

Gamasutra.
I used similar graphs a while back in a column, so here are updated versions.

The effect of the 3DS price drop is pretty evident here, I think.
YKfIk.png


Here are the 3DS sales added in:
XFAdR.png


Hopefully we can see what 3DS XL sales add to the mix next quarterly update.
 
I used similar graphs a while back in a column, so here are updated versions.

The effect of the 3DS price drop is pretty evident here, I think.
YKfIk.png


Here are the 3DS sales added in:
XFAdR.png


Hopefully we can see what 3DS XL sales add to the mix next quarterly update.

That's a lot healthier than what it's seemed like based on the general commentary on sales.

I don't suppose that you have GBA info so you could extend it back a few years so we can see how the prior transition acted in comparison.
 
Yet with nary an ad about iOS gaming apparently, the iPad tops the most wanted lists for kids 6-12...

nielsen-holiday-full.jpg

Here is my take:

Why does the handheld market have to cater to kids? Can't it target core gamers and carve out a respectable market with that demographics, too?

Handhelds are often seen as pacification devices, at least by parents toward kids. Keep them quiet on the road trips and around the house. Why buy a handheld for a kid, when mommy can lend little Johnny her iPhone? I see this happening all of the time, but that just my perceptive anecdote.

Arguably, as a 31 year old core gamer (with disposable income), who had no interests in handhelds bought into 3DS last year in anticipation of Resident Evil Mercenaries 3D/Revelations. Since, I've acquired 20 3DS games, all bought new and most preordered. Why am I, or gamers like me, not the demographic Nintendo tried to target? Bring over our favorite Intendo series, work with third parties to get quality offerings of our favorite series' and work to create new IP's (sorely lacking on this gens HD systems as of late)...I'm a prime example of the gamer who has traditionally shunned handhelds and dove in for my favorite series. I acquired other offerings along the way, even in genres I've never tried. I invest in my investment.

I will say not every gamer is like me and some are too stubborn to give certain platforms a chance. I'm glad I did. It reminds me of that PS2 generation feeling: awesome!

Aside, I work in the salon industry and you wouldn't believe how many kids are pacified using the parents iPhone for Angry Birds. The more parents use the device, the more curious the child is, the child begins to use it and then they must have it. It's a natural extension of monkey see, monkey do.

I dunno, I feel like Nintendo can still target a younger base, but they should be aware they could make gains by targeting my demographic just as furiously.

I would just have a hard time dropping 500 bucks for a kid's own device. This is where I think the iPad mini will be huge.

This is another point. A device like the 3DS is more easily replaceable. It costs less than an entry iPad, and 3DSis more like a cat: if you drop it, it has a few more lives and is more likely to survive unscathed. The iPad, iPhone and iPod touch are just slabs of glass and aluminum. I've seen so many cracked backs of iPhones it's almost comical. I'm typing this on my iPad as we speak, there is no way I'm letting my son (step), let alone any other eleven year old (clumsy, careless) hand a delicate device. How parents and people who lost their jobs, people who more on about terrible economy can sellout money on such fragile things for kids, I dunno.

I feel better having mine play traditional games on a traditional device. We've each developed a great library for our 3DS'.

already agreed above that it's not a sign of being truly talented - we're pretty realistic about where our kid stands as mentioned above. However, the ipad as a learning tool has been a revelation : which was more the point.

This interests me, to an extent. Could this also be detrimental? I think learning and absorption can be rather east, when packaged in an appealing, fun manner. What happens when these children who are trained and groomed, using flashy graphical metrics and measures, arrive at school and have/use nothing of the sort? Where learning is in a clunky textbook? Plain pencils and papers? It no longer becomes fun, interesting or as engaging as it once was....

I often say kids struggle in the ADD era of instant gratification - everything is flashy and competing for attention - video games and electronics are fun for them. They're groomed on iOS/DS. They get to school and it can't compete the way an electronic could.....

Sorry the last bit was touching in a previous discussion, but top part talks about Nintendo and targeting new profit :p
 
Maybe - or the script still isn't set yet. Or they have other priorities at the moment (getting Pokemon and Paper Mario ready, for example). Or they want to spread out their releases, especially one that will probably sell well no matter when it's released? You can't efficiently do simultaneous localisation on every title. It's just not feasible without a large staff.

Like, I just don't understand. You're not entitled to Worldwide Releases. It's nice when they can happen, but very often it ends up delaying the product for every region. What difference does it make to anyone if Animal Crossing is released 6-8 months later than Japan? Are you worried about spoilers?

I just want to know what big, important games have been unconfirmed for localisation? Or, is it just likelihood?

Monster Hunter Tri3G
Monster Hunter 4
Beyond the Labyrinth
Bravely Default Flying Fairy
Ex Troopers
Project X Zone
Cinderlife Girls RPG
Etrian Odyssey 4
Rune Factory 4
Dragon Quest Monsters Terry's Wonderland 3D
Chibi Dragon
Calciobit
Gundam
Fantasy Life
Harvest Moon
One Piece
Senran Kagura


...

Mother 3?



Sorry for double post :0( in advance
 

Javier

Member
Monster Hunter Tri3G
Monster Hunter 4
Beyond the Labyrinth
Bravely Default Flying Fairy
Ex Troopers
Project X Zone
Cinderlife Girls RPG
Etrian Odyssey 4
Rune Factory 4
Dragon Quest Monsters Terry's Wonderland 3D
Chibi Dragon
Calciobit
Gundam
Fantasy Life
Harvest Moon
One Piece
Senran Kagura


...

Mother 3?
Also, Culdcept.
 
Monster Hunter Tri3G
Monster Hunter 4
Beyond the Labyrinth
Bravely Default Flying Fairy
Ex Troopers
Project X Zone
Cinderlife Girls RPG
Etrian Odyssey 4
Rune Factory 4
Dragon Quest Monsters Terry's Wonderland 3D
Chibi Dragon
Calciobit
Gundam
Fantasy Life
Harvest Moon
One Piece
Senran Kagura


...

Mother 3?



Sorry for double post :0( in advance

I meant games that they have out right said will not be localised. Sorry if I wasn't clear.
 
Monster Hunter Tri3G
Monster Hunter 4
Beyond the Labyrinth
Bravely Default Flying Fairy
Ex Troopers
Project X Zone
Cinderlife Girls RPG
Etrian Odyssey 4
Rune Factory 4
Dragon Quest Monsters Terry's Wonderland 3D
Chibi Dragon
Calciobit
Gundam
Fantasy Life
Harvest Moon
One Piece
Senran Kagura


...

Mother 3?



Sorry for double post :0( in advance

He said important games which honestly you could argue none of those fit in America besides maybe Bravely Default which I could see them rebranding as Final Fantasy in the west.

Edit: Is their investor meeting QA up yet?
 

mantidor

Member
These little nielson forecast chart things they do never seem to accurately portray anything, obviously Apple products top the list but there is no way PS3 is more popular with kids than Xbox and Wii ... the numbers last year suggested the complete opposite.

Well someone said already that chart is from 2011.

And well, is obvious this is in no way indicative of whats actually going to happen with sales, these are merely the kids wishlists, but they don't handle their own money. Besides the anecdotal evidence in this thread, is there really an important number of kids with iPads and iPhones of their own? Somehow I doubt it, I don't think average families are in the position to expend that kind of money.
 

GopherD

Member
Monster Hunter Tri3G
Monster Hunter 4
Beyond the Labyrinth
Bravely Default Flying Fairy
Ex Troopers
Project X Zone
Cinderlife Girls RPG
Etrian Odyssey 4
Rune Factory 4
Dragon Quest Monsters Terry's Wonderland 3D
Chibi Dragon
Calciobit
Gundam
Fantasy Life
Harvest Moon
One Piece
Senran Kagura


...

Mother 3?



Sorry for double post :0( in advance


I see that list and I die a little on the inside...:(
 

Ranger X

Member
I wonder if there's anyone left in the 'smartphones don't affect dedicated handhelds' camp?

The error is to think that all those Apple sales were supposed to be Nintendo's. Of course there's some influence (would be silly to say otherwise) but I don't think its the main cause of dedicated handheld consoles meltdown.
 

Drago

Member
Why? The majority of those titles will probably be localised eventually.
Yeah, the majority of that list is stuff I expect to see come 2013-14. Just have to wait... :p

All I hope for is less droughts going forward, and as long as Nintendo gets AC and FE out and localizations start coming out more often, I should be good for at least the first half of 2013. :)
 
Why? The majority of those titles will probably be localised eventually.

We don't know this. Capcom is acting coy on MonHun, hasn't said a single word. Has given nary a hint as to a yes or no. They haven't given localization plans for anything else. Konami has said nothing of Beyond Labyrinth. In fact, no publisher has mentioned a single game on that list for Europe or North America. At all.

My point is, Nintendo should help make some of those happen. Not every gamer wants shooters. Not every gamer wants a western piece of junk portable title. Some western gamers, would like some Japanese flair for 3DS, in addition to other types of games.

Monster Hunter would be a great start, it would be my first experience with the series. My stepson and I each have 3DS and it would be fun to play that together.
 

Striek

Member
That's a lot healthier than what it's seemed like based on the general commentary on sales.

I don't suppose that you have GBA info so you could extend it back a few years so we can see how the prior transition acted in comparison.
Commentary reflects expectations though (especially Nintendos). Success is relative, last FY results showed they missed their initial forecast by 8.6M handhelds for the year which is huge (that forecast was before the huge 3DS price drop too).

This is a yearly chart since the GBA launch so its not as smooth but it shows the transition.
KU1ll.png

The 3DS actually had a slightly better first full year than the DS but overall last FY Nintendo had the lowest handheld sales they've seen since just the GBA was on the market.
Another chart with this years forecast added.
http://i.imgur.com/Qx6Cg.png

This years forecast is pretty unaggressive compared to what the DS accomplished in a similar timeframe (they are expecting the 3DS+DS to shift 7M less systems than the DS+GBA did), but its probably conservative on Nintendos behalf because of what happened last year.
 

jvm

Gamasutra.
Is there a presentation by Iwata today or soon? I thought it would be up already but I'm sure I'm just confused.
 
This years forecast is pretty unaggressive compared to what the DS accomplished in a similar timeframe (they are expecting the 3DS+DS to shift 7M less systems than the DS+GBA did), but its probably conservative on Nintendos behalf because of what happened last year.


They have until the end of March to shift over 16 million more units to retail. It's going to either take a Wii like explosion of the 3DS or some insane channel stuffing to pull it off. They are betting everything on NSMB2 and it will be extremely interesting to watch if their plan fails. Nintendo is a much better company when they have something to lose.
 
Is there a presentation by Iwata today or soon? I thought it would be up already but I'm sure I'm just confused.

Nope, no presentation for this one.

I was a bit surprised, too, but there wasn't a full presentation for last year's Q1 results, either. There might not have even been a Q&A had it not been necessitated by the 3DS price cut announcement.
 

BKK

Member
Where did Pokemon Black/White 2 ship 30k overseas copies to? I can't find any details of a Korean or Asian version, but presumably it must have already been released somewhere in Asia.

Edit: OK I found it now. Hong Kong and Taiwan (not Korea).
 
They have until the end of March to shift over 16 million more units to retail. It's going to either take a Wii like explosion of the 3DS or some insane channel stuffing to pull it off. They are betting everything on NSMB2 and it will be extremely interesting to watch if their plan fails. Nintendo is a much better company when they have something to lose.

They could have much more easily have met this goal if the 5th Gen of Pokemon had debuted on the 3DS. Pokemon is king of software selling hardware. I'm sure there's plenty of people who buy Nintendo's handhelds for Pokemon and not much else.
 

Aad

Member
I used similar graphs a while back in a column, so here are updated versions.

The effect of the 3DS price drop is pretty evident here, I think.
YKfIk.png


Here are the 3DS sales added in:
XFAdR.png


Hopefully we can see what 3DS XL sales add to the mix next quarterly update.

Wow thanks for these. Dat product life cycle.

How big is Nintendo in smaller Asian markets like Hong Kong, Taiwan, South Korea and are there any figures available for these countries?

I'm also very interested in how Nintendo will tackle the Chinese market which is huge:

The 72nd Annual General Meeting of Shareholders said:
I would like to know about the current situation of the company’s operations in China and what problems you have in doing business there.
Iwata said:
As for the business in China, we have a local corporation named iQue which works to deliver our products to Chinese consumers. Under the name of iQue, we launched the Nintendo DS in July 2005, the Nintendo DS Lite in June 2006 and the Nintendo DSi in December 2009. We plan that iQue will release our future products as well, but I am afraid I should not talk about any future plans here. Messages dispatched by a Japanese company in regard to China can often be first translated into English and, then, further translated into Chinese to be spread throughout China. In this process, I myself experienced several times in the past that what I said in Japanese was reported in China in a different context and meaning from my original Japanese messages, which were conceived by the people there as rather unpleasant although, as a matter of course, I had never meant to say such things at all. Through these experiences, we have learned that any business announcements about China should be made in China. It seems that a number of the Japanese companies doing business there also make it a rule to talk only about a general plan in Japan, but the detailed plans are announced by their local corporations. Therefore, although iQue will continue its businesses there, please let me refrain from talking about specific strategies here.

One of the challenges in doing business in China is related to the fact that video game systems today are instantaneously distributed to so many different countries in the world as soon as they are launched somewhere on the Earth. Game systems are also available in China, but I hear that most of them are unofficially imported items without paying any value-added tax, which is equivalent to the consumption tax in Japan. Of course, as we are trying to do our best in order to conduct legitimate operations with no legal issues, iQue sells our systems with the value-added tax. This makes a price gap between official products and unofficial ones. Therefore, we have to tackle the challenge of how to add a special attraction to official products so that consumers will choose them. We would like to find a productive solution this year. I hope you will wait for our announcement on the result.
 

Eccocid

Member
Why do ppl keep connecting Zynga's crash to smartphone market?
Do you realize Zynga crashed due to being late in mobile platforms.
Future is mobile and Zynga was late on it. They released some apps at there but their output wasnt big as on Facebook.

If you can get some proper reports about future of mobile market( those reports you usually pay for them), you will see each of them says the same thing;

In next 5-10 years everything will be mobile and there is a big push on mobile marketing. Gprs and Augmented reality based marketing on mobile platforms is the next thing.

The market and investment for smartphones is just gonna get bigger. It is not a fad. It is the evolution.
 
In case anyone cares,Nintendo will announce its financial results in the next few hours.
I hope I can contribute more in the future.
 

BY2K

Membero Americo
GAH, got excited for a moment. At least there's that bit of news that the next report is coming.

Let's see dem profits Nintendo (or not.)
 
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