Nintendo posts Q1 loss on strong Yen and lower DS prices
By Thomas Ricker 
posted July 29th 2010 4:43AM
posted July 29th 2010 4:43AM
posted July 29th 2010 4:43AM
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If they launch the 3DS before the holiday season, I could easily see them hitting their desired numbers as people everywhere get a headache.
@Elaith
Yeah, for a company like Nintendo, market forces can sometimes be a bitch. Doesn't mean they're out or down for the count. Just means they have to hope that the market is receptive to their product and they continue to sell tons of stuff.
@Elaith I think they needed too release a Refresh council like Microsoft did with the New Xbox model, Wii HD anyone?
@liftedngifted1 I think they simply need to start production outside Japan, since 86.5 percent of its sales were outside of Japan.
@Elaith another example of market share != profits
Hey Nintendo, can you say saturation?
And here i say this as i just bought a wii last week...
@liftedngifted1 You capitalized "refresh" out of no where, and you 'capitolized' "console" and made it "council". (Second capitalized misspelled on purpose)
@Khalid Shahin Thats very interesting, thanks grammar police. I'm sure you feel very smug pointing out those errors. How dare people make mistakes on the internet, how dare they!
It surprises me that a company which still sees such strong sales can make a loss so easily. I'm sure they aren't worriedthough, 3DS will sell more than they can make for some time.
@Elaith I don't like how it is worded though that lowering DS prices caused the loss. That is technically true, but not lowering DS prices would have caused them greater loss.
Chump change to what they previously make. The problem is that they had all the casual gamer and chubby but lack of focus on other group.
PC gamers? : )
@cdf74dc9 "all the casual gamer and chubby"
wat?
@Spogwan
You know, the 5 min games and the game where you actually have to swing your ding around? Hardcore don't digs those.
@Spogwan
He's an iHater so anytime he comments on an article that doesn't
involve Apple he has a hard time formulating his sentences because
there's no iHater script of overblown bandwagon criticisms to follow.
@cdf74dc9
Or phrased differently: all grandparents and people who had never played games on a console before already bought a Wii, sold it after they got bored with it, effectively flooding the market with cheap consoles with grossly outdated specs.
I have to credit Nintendo for dragging in so many people that would never by a 360, PS3 or phat gaming rig, but the effect lasted until the market got saturated and the potential of the Wii hardware exhausted. Nintendo has to introduce new hardware really fast and it better be good and also include proper controllers. I used to love Mario and Zelda and that stuff and I used to have a NES, a SNES and a GameCube, which were all great. The Wii drove me away from Nintendo because it had nothing to offer that I like :-(
@drange Watch nintendo's oress conference. Statistics do cool stuff.
@High Where are Nintendo's profits? See Apple iOS.
@iPhone 4 - See the door, sir. We don't serve trolls here.
I'm sure the development costs for the 3DS have been pulling net profits down for Nintendo. Otherwise, I'm sure they'd be doing well.
@fatallife I agree, this time last year the 3DS probably wasn't half as advance in the production cycle as it is now.
I think the Grim Reaper is going a bit far... Nintendo isn't doing *that* badly.
@iooioio
This is the second time they went in red and they are over 100 years old. Can't say the same thing for other company's though.
Ninty? Good grief.
well its about time lol, they still made them self a nice mountain of money.
Hardcore gamers > Casual gamers.
1080p > 480p
Xbox Live / PSN > whatever Wii has for online gaming.
@Meekermoloko
I still agree that Nintendo will make a profit this year after Mario 2, Metroid Other M, Epic Mickey, DK and Kirby game sale numbers are factored in.
"Hardcore gamers > Casual gamers"
Just what are you trying to say here? That the industry should ignore the casual MAJORITY and focus solely on the hardcore MINORITY?
@Plothole
Did I say that? Wow. I didn't think I said that at all.
One thing I will say is that Hardcore gamers tend to buy more of the $60 blockbuster games, but they also buy the downloadable casual games as well. Casual gamers buy the smaller games and tend to replay those same games over and over.
I know people who bought the Wii because of all the press and excitement over it. They liked it for a month or so, then it just sits there on the shelf. Yes, there is a market for casual games which is why Microsoft and Sony are trying to grab some, but it shouldn't be the majority focus.
I have both the Xbox and the Wii. I play the Xbox 90% of the time. Look at the games sales numbers. The majority of them are the bigger game titles for Xbox/PS3 played by hardcore gamers. The top Wii selling games are either ones that were packed inside a console/controller, some sort of exercise game or have Mario in it ... and remember, most hardcore gamers are getting the Mario games too.
@Meekermoloko
I didn't know what you said, because your initial statement was needlessly vague. Saying stuff like "X > X" without clarifying in what way is flat out stupid.
And remember that Nintendo has two consoles, one home and one handheld, currently on the market.
@Plothole
Reggie, is that you?
@Meekermoloko
And that cliche is even more stupid.
Nintendo needs more cash this year? Pokemon black and white...DONE
@Hobsie
I know, right? It's almost like the guys @ Nintendo forgot that they could just print money? :rolleyes
Can`t even remember the last time Nintendo had a bad quater. Considering their sales the last couple of years they probably have like a trillion dollars i backup for worse times.
Even so it wouldnt be a bad thing if they started to think about a HD capable console with lots of new stuff..
$288 million seems like a lot.
This is what always happens to Nintendo, they rest on their laurels. Mainly because at the core they are cheapskates, that's why their screens will always be low resolution.
@JS
Right.
Nintendo, releasing the very first consumer 3D, glasses-free, handheld gaming system... overflowing with 3rd party support, is resting on their laurels?
@JayVe They are resting on their laurels. They refresh their handheld and while they do that they let their Wii slide.
@giulio
This is arguably the best year for Wii Games ever and you reckon they're letting the Wii slide? You been living under a brick/Xbox?
Sony finally makes a profit...Nintendo takes a dip....well damn....I suppose since the Yen is so strong that Sony could have...made more money if it were weaker? At any rate, I'm sure that they will turn it around this holiday season...
Pops in that photo looks like he's ready for Jr. to saddle up for some extra Wii practice.
When I was a kid I would play tons of video games. As an adult I've fallen into the "casual" class and am happy to own a Wii that Nintendo marked to us grown up gamers.
I can't remember the last time I made a purchase for my Wii and perhaps I'm not alone. Nintendo has nothing for the hardcore gamer and not too many titles for the casual adult gamer.
They release a lot pure garbage on their Wiiware service and don't update their virtual console games enough. Is it really that hard to update?? Also their user interface sucks.
The only thing I use the wii for now is Netflix. I dont mind that the Wii is not HD I do mind that I don't have much to play on it.
I think in the long run this is going to put the hurt on Nintendo. Perhaps they will just go back to their roots making great handhelds and publishing for other consoles like they did back with Coleco.
@giulio Depends what roots you're going for, card games?
@Inkopa yeah not back that far. I got into Nintendo during their Game and Watch years.
Surprised that neither Engadget nor any Engadget poster can work out this is not a real loss in the sense of costs for this period exceeding income. With Nintendo that can never happen. Both Wii and DS are selling huge numbers and at a profit, irrespective of currency fluctuations.
This is clearly a case of them attributing a special expense to this very quarter. Possibly something like R&D cost for the 3DS. How else do you explain the fact they are not re-adjusting their profit forcast for the year?
They could have spread this abnormal cost over the whole year and made no loss in any period but lower profits in the other 3 quarters. For some reason they have treated the accounts to have a loss in this quarter instead. Maybe they want a $1bn profit for the Christmas quarter.
Yeah, Nintendo, this is what happens when you release one good game a year. Where are my fucking F-Zero and 1080 for Wii/DS?
Oh, and 3DS R&D costs? That's a good laugh. It's less powerful than the current PSP!
@nexekho so processing power is all that matters? No R&D whatsoever was needed to come up with a 3d console that does not require glasses. Interesting.
@etuoyo It's hardly advanced. It's a standard screen with a layer of thin printed barriers on top. It was developed by another company for phones, not by Nintendo. It only works when you look straight at it, not when you view the screen from different angles which is the POINT OF 3D.
@nexekho I thought being able to enjoy 3D at affordable cost, without silly glasses on that darken the screen and are uncomfortable would be more of a point of 3D than being able to look from any angle.
@nexekho
False. The 3DS is not less powerful than the PSP.