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Nintendo Cuts Net Income Outlook on Stronger Yen

Nidain said:
I think you are mixing Yen and Yuan.
No, China is just the more popular example, but several countrys have played (or are still playing) this shortsighted game.

Parl said:
This is what you intended and stated fairly clearly, IMO.
ok, thank you. :)
 
oh no it's over, Nintendo will go from utterly fuckng ridiculous sales to just ridiculous sales. quick cue the Nintendo as third party speculation
 
markatisu said:
oh no it's over, Nintendo will go from utterly fuckng ridiculous sales to just ridiculous sales. quick cue the Nintendo as third party speculation

You're about 17 posts too late.

Sony and MS wish they had Nintendo's "problem".
 
SpinningFrog said:
I'm surprised that no one has commented on the fact that the DS is at 96 million units sold world wide.

We're too busy sarcastically predicting the end times. That's stellar; the system deserves it.
 
JoshuaJSlone said:
If 2008's numbers were to repeat, it would pass up GB+GBC by the end of this year. PS2 would then take until about mid-2010.
Hott!

How long until Wii bests NES, GBA and PS1 respectively?
 
jarrod said:
Hott!

How long until Wii bests NES, GBA and PS1 respectively?
Doing the same "If 2008 repeats" trick:

NES by the end of this year, though very close by the end of the third quarter.
GBA after Q3 2010.
PS1 after Q2 2011.

NES one shouldn't be too far off from actual, but clearly doing a straight line out for 2.5 years is going to be a bit more off one way or another.
 
stuminus3 said:
QUICK!

MAKE SOME HARDCORE GAMES!

GOGOGO!
Don't worry, Kirby Wii is on the way. April 16th.

neogaf1.gif
 
This must be the gloomiest mainstream article I've read about Nintendo in forever:

timesonline said:
Analysts described Nintendo’s guidance as a “baffling and potentially very worrying” sign for worldwide sales of the Wii as recession curtails household spending around the world.
“Today’s revision suggests that the roaring pace of Wii growth that we’ve seen until now may be over,” Hiroshi Kamide, a KBC Financial Products analyst, said.
The numbers also imply that we are going to see a sudden collapse in the fourth quarter from record margins to some of the thinnest margins Nintendo has experienced for three years.”
the downgrade could imply that “they know something big has gone wrong, and that people are not buying the machines”.
Part of the problem, according to games industry insiders in Japan and the UK, is that the pipeline of “must-have” Nintendo Wii software is less strong now than it was six months ago.
 
Weisheit said:
This must be the gloomiest mainstream article I've read about Nintendo in forever:
LOL! Didn't Wii just have it's biggest Q4 ever? With (PS2) record breaking sales for the holidays? Where's this "bottom dropping out" speculation coming from? :lol
 
Weisheit said:
This must be the gloomiest mainstream article I've read about Nintendo in forever:
.
Part of the problem, according to games industry insiders in Japan and the UK, is that the pipeline of “must-have” Nintendo Wii software is less strong now than it was six months ago.

On the most widely read gaming websites, there are few forthcoming Wii titles generating the sort of excitement that preceded the release of Mario Galaxy or Smash Brothers
NeoGAF redeemed?
 
the downgrade could imply that “they know something big has gone wrong, and that people are not buying the machines”.

Might be relevant in Japan but wth are they smoking if they are referring to the UK and US, we still cannot keep them in stock in this country for more than 48hrs :lol
 
jarrod said:
LOL! Didn't Wii just have it's biggest Q4 ever? With (PS2) record breaking sales for the holidays? Where's this "bottom dropping out" speculation coming from? :lol


Are the analysts interviewed from Japan? That could somewhat explain some of the pessimism.
 
jarrod said:
LOL! Didn't Wii just have it's biggest Q4 ever? With (PS2) record breaking sales for the holidays? Where's this "bottom dropping out" speculation coming from? :lol
Nintendo themselves. Dropping your forecasts by 33% means something went wrong somewhere.
 
jarrod said:
LOL! Didn't Wii just have it's biggest Q4 ever? With (PS2) record breaking sales for the holidays? Where's this "bottom dropping out" speculation coming from? :lol

No, the DS was the one who broke PS2's record in December.
 
schuelma said:
Are the analysts interviewed from Japan? That could somewhat explain some of the pessimism.

It would have to be, it does not make sense elsewhere since the Wii just fell short of breaking the holy grail of Dec sales figures (with the DS taking the title)

You know what would be funny, if Nintendo was conservatively lowering their numbers then when they do exceed them it just looks that much better.
 
ViperVisor said:
That explains the 33% drop more or less.
jarrod said:
Wasn't that already attributed to currency fluctuations?
Not entirely though since Nintendo is also forecasting 1 million less Wiis to be sold. Analysts are going to be keeping a good eye on the January sales from each region to see where the weakness if originating from (likely Japan but there is a good chance its a global drop too).
 
I think there is definitely some short term concern in Japan. Wii Music didn't do anything for hardware and barely sold out its initial shipment. Holiday sales were way down and 2009 sales are getting dangerously close to 20K levels.

That said, Nintendo has a lot of cards to play- price drop, new colors, Motion +, and the biggest 3rd party games the console has seen.

I wonder if Nintendo is just going to ride things out until Wii Sports Resort or if they'll be aggressive and maybe do a bundle or price drop (of course maybe they can't be that flexible that quickly).
 
grandjedi6 said:
Not entirely though since Nintendo is also forecasting 1 million less Wiis to be sold. Analysts are going to be keeping a good eye on the January sales from each region to see where the weakness if originating from (likely Japan but there is a good chance its a global drop too).


I don't think Japan could possibly account for a 1 million unit downturn.
 
grandjedi6 said:
Not entirely though since Nintendo is also forecasting 1 million less Wiis to be sold.
Isn't that something like a 6% drop? I wouldn't be surprised if it happens since they should finally be able to supply enough to meet demand this year.
 
schuelma said:
I don't think Japan could possibly account for a 1 million unit downturn.

Japan could easily account for a million units over the year end/next few months. Nothing has really pushed Wii hardware for the entire period, and they might have been expecting to have Wii Sports Resort (or some other big hitter) out this fiscal year, but haven't managed it.
 
schuelma said:
I don't think Japan could possibly account for a 1 million unit downturn.
Me neither but either way the news is pretty dire. A global drop would signify the start of a downturn in the previously strong US and Europe markets while a Japan drop would be horrible news for the state of the Wii in Japan.
 
schuelma said:
That said, Nintendo has a lot of cards to play- price drop, new colors, Motion +, and the biggest 3rd party games the console has seen.

Do new colours even create momentum for consoles, historically speaking? I can see why it works for handhelds, since they are more than likely bought by individuals inside the home and they are more personalised devices than a platform shared by everyone in the family.

Not trying to disprove you, I'm just curious.
 
Interesting articles, but I'd take them with a giant grain of salt. As many others here have pointed out, such a decrease is expected given the strength of the yen and the decrease in demand in Japan. I'm guessing Nintendo is just being conservative - as they've always been. Also, it's clear the economic problems facing the entire world at this point aren't going anywhere, and Nintendo surely understands those problems may eventually affect sales of their system(s).

I'm actually amazed NOJ has not yet offered a bundle, new color or even price drop for the Wii. Numbers have been down for some time, yet they're sticking to their guns. That alone tells me either they aren't worried or they're dumber than they seem, and I kind of dount it's the latter.

I also wonder if they're against offering new colors or a price drop since the same would be expected in other territories? Although, they've offered up tons of color options in the past that were never released outside of Japan, so that doesn't make sense either.

I'd say if the numbers don't turn around soon, and especially if they don't turn around after Wii Sports Resort, something will be done to rectify the situation in Japan.

The most interesting discussion missing from the articles posted here is what this means for Sony and MS. I mean, really, if all of this means bad news for Nintendo and the Wii - and the Wii still stomps the PS3 and X360 when it comes to weekly/monthly/yearly sales in Japan - what does that mean for Sony and MS?
 
swerve said:
Japan could easily account for a million units over the year end/next few months. .


No, not really. Wii was doing 40K a week pretty consistently most of last year.
 
Psychotext said:
Isn't that something like a 6% drop? I wouldn't be surprised if it happens since they should finally be able to supply enough to meet demand this year.
If supply had increased to finally meet demand we wouldn't be seeing a decrease in sale forecasts. Instead its likely the reverse: the demand has dropped to finally meet the supply.
 
Regulus Tera said:
Do new colours even create momentum for consoles, historically speaking? I can see why it works for handhelds, since they are more than likely bought by individuals inside the home and they are more personalised devices than a platform shared by everyone in the family.

Not trying to disprove you, I'm just curious.
I believe it used to help spike PS2 and GCN too. Often it's timed with a key software release though, usually 3rd party... maybe Nintendo will do one for Monster Hunter 3 or Crystal Bearers this year?
 
Regulus Tera said:
Do new colours even create momentum for consoles, historically speaking? I can see why it works for handhelds, since they are more than likely bought by individuals inside the home and they are more personalised devices than a platform shared by everyone in the family.

Not trying to disprove you, I'm just curious.


Yeah it's probably not a huge thing, but I think a new color+ price drop can at least temporarily increase sales.
 
I actually hope the decreased demand for the Wii in Japan gets Nintendo to open up a bit more this year. I mean, Wii Sports Resort should be out this spring, yet when was the last time the Japanese public (or the public anywhere in the world) heard about it? It's kind of hard to build hype for a product few know exists...
 
schuelma said:
No, not really. Wii was doing 40K a week pretty consistently most of last year.

But what if when they predicted in October the sales for the rest of the year, there were other factors assumed to be part of the Japanese sales.

Like for example Wii Sports Resort coming out March 1st. Which maybe they've slipped.

I think it's highly unlikely that they're scaling back their US/Rest Of World predictions even slightly, considering all the information we have up to now.
 
grandjedi6 said:
If supply had increased to finally meet demand we wouldn't be seeing a decrease in sale forecasts. Instead its likely the reverse: the demand has dropped to finally meet the supply.
Nintendo could also be holding back on a planned production increase... they tend to be overly cautious with this sort of thing, and given the current financial climate it may be more an issue Nintendo scaling back supply rather than demand dropping.
 
grandjedi6 said:
If supply had increased to finally meet demand we wouldn't be seeing a decrease in sale forecasts. Instead its likely the reverse: the demand has dropped to finally meet the supply.
Not necessarily. Let's look at a possibility... Start with an initial pool of 2m buyers who are waiting to get their hands on the machine. 500k new buyers (demand) get added to the pool a month and maybe they lose 100k buyers who get sick of waiting. Assume 1m Wiis a month supply.

Month 1: 2.0m waiting, 1m sold.
Month 2: 1.4m waiting, 1m sold.
Month 3: 0.8m waiting, 1m sold.
Month 4: 0.2m waiting, 700k sold.
Month 5: 0m waiting, 500k sold.

It's an extremely simplified example, but you see that demand didn't drop as such... you just got rid of everyone that was waiting.

[Edit - My maths is broken, but you get the idea! :lol ]
 
swerve said:
But what if when they predicted in October the sales for the rest of the year, there were other factors assumed to be part of the Japanese sales.

Like for example Wii Sports Resort coming out March 1st. Which maybe they've slipped.

I think it's highly unlikely that they're scaling back their US/Rest Of World predictions even slightly, considering all the information we have up to now.
The 1 million drop coming soley from Japan would be pretty dire news for the Wii's state in Japan. And I highly doubt Wii Sports Resort was planned to release this quarter, let alone for its theoretical delay to cause this drop in sales. Unless of course you are suggesting Wii Sports Resorts was going to cause an additional 1 million sales in less than a month in Japan

jarrod said:
Nintendo could also be holding back on a planned production increase... they tend to be overly cautious with this sort of thing, and given the current financial climate it may be more an issue Nintendo scaling back supply rather than demand dropping.
Decreasing production due to the economy would still be representative of a drop in demand.
 
grandjedi6 said:
Decreasing production due to the economy would still be representative of a drop in demand.
No, it would be a purely preventative measure... though it could be due to anticipation of a drop in demand, that's not necessarily the only reason for a supply draw down.
 
grandjedi6 said:
The 1 million drop coming soley from Japan would be pretty dire news for the Wii's state in Japan. And I highly doubt Wii Sports Resort was planned to release this quarter, let alone for its theoretical delay to cause this drop in sales. Unless of course you are suggesting Wii Sports Resorts was going to cause an additional 1 million sales in less than a month in Japan

It was a theoretical example, as is this entire discussion seeing as we're not involved in the financial planning.

It's absolutely not hard to imagine that, had they had Resort ready to go in March, they couldn't have sold 200,000 units a week. And with the associated marketing build up, sold more. I'm not saying it's what happened. I'm saying we have absolutely no more reason to disregard such a theory than the idea that it's due to 'something big going wrong'.


Decreasing production due to the economy would still be representative of a drop in demand.

Not if they were increasing capacity in order to sell more units in regions where it's no longer financially sensible to sell the units. Like the Eurozone right now. Currently, a European Wii gets Nintendo significantly less money than they were expecting. So why spend money to sell more of them whilst the exchange rate is still fucked?

There are numerous possibilities about what's gone on, many of them not related to Wii's popularity. Jumping to negative conclusions is natural for the market, but then, that's exactly when smart investors take a punt on something.
 
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