Nintendo net profit declines for first time in six years, panic remains inadvisable
By Vlad Savov 
posted May 6th 2010 6:42AM
posted May 6th 2010 6:42AM
[Original image courtesy of Anarkyman]
posted May 6th 2010 6:42AM
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Yes, I'm definitely willing to bet against them breaking their record and most likely against them improving from 2009. Main thing they have going for them would be an improved global economy. Most other things are going against them with the exception of a 3D DS (which we don't have a date on so this isn't factored into my post).
@juanvaldez this is a very short-sighted point of view to take. Nobody would have bet that Nintendo would pull out in front of the rest, considering the PS2 vs. GameCube argument, and yet they came out with the Wii. Everybody with an, "educated" opinion thought it was going to flop, and yet it pulled out ahead and garnered the most market share of the 3 new consoles. Now you're saying that, "everything is going against them" and, "the only thing they have going for them is an improved global economy".
No, I don't know if they're going to pull out another Nintendo Wii-like market-grabbing console, so I'm not about to sit here and make baseless assumptions on the company's future. Instead, I'm just going to say: sit down, shut your mouth and wait and see.
@The Madman It's called: market saturation, trend analysis and then the personal "baseless" claim of looking at what is going on in the industry.
Oh, and Forbes says the same thing, though when I posted my comment I had no knowledge of any negative forecast on them.
Nintendo is expecting tough times to continue. It forecasts sales to fall 2.4 percent to 1.4 trillion yen ($15 billion) for the fiscal year through March 2011 and expects earnings to slide 12.5 percent to 200 billion yen ($2.2 billion).
http://www.forbes.com/feeds/ap/2010/05/06/technology-technology-hardware-amp-equipment-as-japan-earns-nintendo_7580940.html?boxes=financechannelAP
Downranking coming your way, mostly for your attitude but also for projecting ignorance on someone else when you aren't in a position of knowledge.
@The Madman Let's think about how Nintendo had a good year in 08, it was in both mobile and home consoles, their mobile consoles just got refreshed and came in with lackluster fanfare, even to those who have multiple versions of the DS. They aren't catching that. Also, IIRC they actually lost a small fraction of the mobile gaming revenue in the largest gaming market in the world. Their bread and butter machine isn't looking any better or younger, just darker, and that will ship a few units but it's just a gimmick. Imitators are on their heels as I already mentioned they are dealing with the biggest problem of all...their previous success. ...Look, it's a good problem to have, especially if they continue to innovate with things like portable 3D which is the first portable gaming system I've been excited about in years and whatever may eventually come to succeed the Wii or at least add longevity to it.
Conclusion: standing still isn't how you grow in the gaming industry. Announcing a form of HD Wii (which they have shot down numerous times, but let's not think that is an indication that it will or will not come) will give them a great chance at beating these negative expectations. Anything short of that and they will have to hope for a mega-holiday season.
@The Madman "No, I don't know if they're going to pull out another Nintendo Wii-like market-grabbing console, so I'm not about to sit here and make baseless assumptions on the company's future. Instead, I'm just going to say: sit down, shut your mouth and wait and see."
Wow, you surely don't know what speculating, discussing and being polite mean. Not to mention your baseless assumption about his assumption.
@juanvaldez I am a proud part of that... Girlfriend wanted a Wii and I went and bought a PS3. Now I have no girlfriend and one game...
@WhitecollarcriminalFinancial I think you are largely right, I thought about mentioning price, and the relative prices are more tightly grouped. Also, mentioning price makes me want to talk about a price cut (I know they have mentioned they don't plan on cutting during 2010), and if they did that would make increasing profitability more out of reach than even before.
The other thing is, the reason why Nintendo did SO well is because they did so well. It hit critical mass so early and when parents were out shopping during holidays they nearly always had the Wii in mind, if not the top of the list. Both the ps3 and 360 benefited from Wii supply shortages a few years back. So, since so many families had the Wii, parents thought it was safe for their children and the cool console to have, in addition to being the cheapest. These things are still largely true, but now most parents who think like this have already made that purchase. - Again @ MADMAN market saturation.
@Mr w00t
Ugh. You're dating a fanboy? Sounds like she was a huge nerd anyway. No big loss.
@Mr w00t "@Mr w00t "Girlfriend wanted a Wii and I went and bought a PS3. Now I have no girlfriend and one game..."
Consider yourself saluted.
Disregard females, acquire currency!
@juanvaldez We do have a "date" for the 3DS, "before March 2011", officially, and it's being speculated that the handheld is just about ready to ship and will be launched before Fall.
As for market saturization, no analyst can predict the size of Nintendo's potential market. Many Wii owners are not gamers. But, it's safe to say that at 70 million sold, the Wii is about 70% of the way there. Each generation, the lead console sells approximately 100 million over a 6 year period.
As for an HD Wii, not only would it be useless since the games are still stuck in 480p, but the price of the current Wii hasn't even nearly reached its inevitable "$99.99" pricing that pushes out the final 30-40 million consoles. Supply for the Wii finally met demand less than a year ago...it's STILL outselling the competition. While Nintendo may "lose profits" they will still be the most profitable of the three. They haven't released a handheld yet that hasn't sold over 100 million, so the 3DS combined with the Wii could possibly keep their profits up.
Screw Nintendo they're the Fischer-Price of game consoles. "For ages 2 - 6"
@Mister Warmth Funny that Fisher Price influenced so many modern video games then, eh?
ARRRGHHH!!
no need to panic.
@weeman
"Dont Panic"
Time for the WiiHD
@Discourse
Here is the plan...
This year
E3 - Announce 3DS
Fall - 3DS Launch
Next Year
E3 - Announce WiiHD
Fall - WiiHD Launch
Simply look at history to see the trend of console releases. 2011, we are due for a new Nintendo home console.
@Discourse
Or Wii 3D, whatever bs they can come up with.
@Discourse Exactly, here is Nintendo's plan
1. Update Wii with some minor functionality to create new model
2. Insure new minor functionality can be used to sell new class of game
3. Rework existing titles to include new functionality as new game
4. ???????
5. Profit
@Kamalot No, I think that the WiiHD will be announced at this E3. Considering that some Wii games support HD already (SSB:B), all they would have to do is overclock the GPU and presto, WiiHD.
@Discourse
Personally I think the WiiHD is a bad idea. I think Nintendo has really screwed up by not utilizing what they have, ergo the Vintage Game market in the Wii store. If they could just get around to cataloging every game for the NES and SNES i would spend my entire earnings there.
@charrr Not so simple as that, especially the overclocking part - the Wii is very dependent on all of the interconnecting clock speeds. It's got an amazing architecture in that way. Essentially, to overclock the GPU, you'd need to change the clockspeed on everything in the system by 2x. Which is about the same as making another Gamecube to Wii jump, and would warrant calling it a new system.
Death needs a Wiimote too.
Or maybe a fake scythe that has a slot to plug it into, like a Guitar Hero guitar.
Death better watch out for flying Wiimotes.
@Gregorian Screw photoshop, somebody make a Death game with a scythe accessory. Reaping souls from the comfort of your own living room.
Nintendo will be there to watch companies rise and fall. They'll be in business when people wont know that there was once a corp named Intel or that there were cars driving around once made by Volkswagen.
People are starting to realize how much the wii sucks haven't played mine in ages
@Console fanboy
Sorry. Wii has had its ups and downs, but it is damn fun to play. I have all three consoles and can't get enough Monster Hunter III. There are great games for the Wii.
@Console fanboy : its SO obvious you haven't played monster hunter tri on wii. Haven't touched my ps3/xbox 360 since it came out, planning on selling them lol. I'm tired of 60-70€ "hardcore" titles.
50€ monster hunter tri bundled with black classic controler+ quropecco head = WIN!
For past 2 years they have been doing amazing job. I wouldn't have guessed when Wii launched that it could ever come so big. Nintendos handheld consoles keep being one most sold electric device model after model so DS selling like hotcakes for all these years wasn't too big of a surprise.
Simply put all the devices are already quite old and i don't know what kind of magic they would have needed to do any better. Just waiting how they spend part of the money to new hardware and we see how this goes after that again.
The Wii's got a much shorter lifespan than the PS3 or even the XBOX 360, the DSi XL is about to flop, the mere idea of a 3D DS is ridiculous... so yeah, you should indeed panic and get ready for a long, big dive in profit
Actually I was not knowing this much of things, how Nintendos is in loss. I think from past 1 -2 years they have been doing amazing job. Nintendos handheld consoles keep being one most sold electric device model.I can't understand how people can get bore about wii.
acekard
So if we follow regular Nintendo trends, they will release the Wii v1.5 this Christmas. It will be essentially the exact same thing as the regular Wii, but with a new case. Oh, but it will force you to either buy all new software or all new controllers - or both. And in exchange for all that new money, they will give you the privilege of offering HDTV video.
@Hazdaz Actually, that wouldn't be a regular Nintendo trend...but I'm sure you'd like it to be so you have a point!
@Godfail
Riiiight, because Nintendo haven't released about a billion different versions of the GameBoy/DS and each one offering only marginally more advanced technology than the one before it, but just enough to usually warrant a whole new library of games and accessories.
Nope, Nintendo has never done anything like that. Nope. Not at all.
:rolleyes:
Who knew: selling glorified Fisher-Price toys might not automatically lead to record breaking numbers
A business with net profit of $2.44 billion is in good shape.
gaming is cyclical. Nintendo are coming out of a strong cycle and need to reposition. Sony and Microsoft are in the middle of their cycle so look stronger.
Definitely no need to panic.
Shigeru Miyamoto was overheard saying "I'm going to f****g KIRR APPRE!!!"
And throwing a totomi mat across the room in rage.
Don't worry guys, I'm sure a 3D portable Mario Virtual Boy will save you.
@Wesscoast
Having said that, I have to admit, the new Mario game looks sick and I hope it sells 20 million copies
If that 3D DS is anything like I expect it to be, they already have my money - they just don't know it yet.
Even though they did the 6/10 for a reason, it still bothered me that it wasn't simplified to 3/5.
The Market is saturated with Nintendo devices anyone and everyone already has one, expect declines until new hardware is released.
"income sheet"?
come on, engadget. You hired a tech-loving lawyer, so now hire a tech-loving guy with half a background in finance/accounting.
It's called an Income Statement, and a Balance Sheet.
I imagine it will bounce back some when Super Mario Galaxy 2 is released in a few weeks. Plus the release of the black Wii. I'm already asking around if anyone wants to buy my white one so I can get the black one :]
Great picture Engadget, thanks for the laugh!
@EdgeOne
Hey Engadget! I dig your Photoshop action...
Love the reaper image XD
Ahead of its European release on May 7, check out our final verdict on the import version of Treasure's follow-up to the N64 action classic.
Nearly a decade ago, as the N64 era drew to a particularly quiet close in Japan, Nintendo published Sin & Punishment, a 3D shoot 'em-up developed by Treasure. Despite scarcely making a dent in the Japanese charts and being denied a Western retail release, Sin & Punishment earned an international cult following off the back of its unique gameplay and Treasure's reputation for creating outstanding action experiences. Nintendo has attempted to rekindle this enthusiasm in recent times, first with the worldwide release of the N64 original on Virtual Console, and now a full disc-based sequel for Wii.
Sin & Punishment: Successor of the Skies (as it will officially be known in Europe) utilises the Wii Remote and Nunchuk to make the unwieldy control scheme of the original vastly more fluid and accessible, allowing Treasure to let its imagination run wild as never before and dial up the action to truly mesmerising levels. Complemented by a well-conceived scoring system and online leaderboards that boost replay value, the result is an incredibly intense and surprisingly sizable game that, despite losing some of the unique character of the N64 original, delivers a shoot 'em-up experience unparalleled on Wii and simply impossible on anything else (at least for the time being).
http://pttugas.co.cc
was this article was written assuming the reader knows something about Nintendo's profits? the first para is really hard to understand.
MARIO GALAXY 2 HOOOORAYY!
this is exactly what i said would happen if they announced the 3ds, its too early for another portable. but its just right for another home console. give the people something more advanced at a similar price point to the wii and offers more compatibility with the more advanced game engines, people will snatch it up and they wont stop buying the wii. people are going to stop buying fully viable handhelds because they are releasing bigger models of the same thing.