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Submitted by sticky doja 1109d ago | news

Nintendo to post unexpected loss as Wii successor falters

TOKYO (Reuters) - Nintendo Co Ltd, the world's leading gaming company by machines sold, said it will post an operating loss for a second straight year as the sales of its Wii U, successor to the 100-million selling Wii, faltered.

The company caught investors off guard by predicting a loss of $220 million in the year to March 31, reversing a profit forecast for the same amount, putting its new guidance well short of a consensus estimate of 12.1 billion yen ($133.48 million) profit from 19 analysts. (3DS, Nintendo, Wii, Wii U)

Name Last Name  +   1109d ago
duh. what were they thinking??
BadboyCivic  +   1109d ago
I thought they were sold out in record numbers over the holidays?
wishingW3L  +   1109d ago
they were but because of low production due to it being new.
AsimLeonheart  +   1109d ago
That is all just propoganda of Nintendo fanboys. THIS is the reality. Wii U isnt selling and Nintendo is suffering losses. Now everyone can finally see how Wii U has been performing in reality.
HebrewHammer  +   1109d ago
I'm with Asim.

I want nothing more than for Nintendo, Sony, and Microsoft to coesxist and succeed in this industry, but I think Nintendo's hardware business is way too far behind. If Nintendo focused eclusively on software and distributed their games on other platforms, they'd make a killing. Could you imagine Zelda for PlayStation, or Mario for Xbox?

Hot damn.
blackbeld  +   1109d ago
Maybe so, but this year the WiiU got its momentum with awesome game releases and its still cheaper the PS4 and 360.

This year is just one month old so no worries.
R_aVe_N  +   1109d ago
They were never sold out in my area the shelves were stuffed full of the Wii U. The shelves are still full and it is not selling well at all (In my area at least) I went to a local game store and they had 12 cases during the holiday's and they just sit there. Was the same at Wal-Mart was the same deal.
Xof  +   1109d ago
Seriously. Unexpected? Give me a break. Every gamer I know was/is hesitant about the Wii U... at best.

Hell, even my friends who love the Wii have been dumbfounded by the whole thing.

Of course, I thought much the same about the 3DS, and look how awesome that turned out.

EDIT: The debacle of the first 6 months notwithstanding, of course.
#1.2 (Edited 1109d ago ) | Agree(10) | Disagree(0) | Report | Reply
dboyc310  +   1109d ago
It lost what saved it last gen which was the casual market to phones and tablets. It's a gamecube scenario again.
DigitalRaptor  +   1109d ago
This is spot on. There's no point in doom and gloom since Nintendo will be just fine, but do you see the same insane rush and hyperactive marketing of the Wii and its motion tech? Exactly.

For all its merits, people are simply not as excited for the Wii U because:

1) Those who bought a Wii due to the mainstream excitement and advertising are burned out on what it has provided, and you know the rumour that the Wii is the #1 console to collect dust? I don't think that's far from the truth. These people see the Wii U as an extension of that and as such aren't as interested, even with an innovative tablet controller.

2) It doesn't provide for the mass market what the Wii did.
#1.3.1 (Edited 1109d ago ) | Agree(4) | Disagree(0) | Report
user3915800  +   1109d ago
No they were never sold out, as a matter of fact they are everywere. 220 million lost till march? Whats next 400 miilion lost until august? Ugh, I wish Big N take the lost now early, stop making wiiu and start from scratch, make a unit capable to comfront PS4 AND 720 not the current gen. It suck cause I was hoping for a miracle, but Big N ate donkey kongs banana with the wii-u.
Zhipp  +   1108d ago
Abandoning the Wii U now would cost Ninty substantially more than it would to stick with the Wii U for the next 5 years. They just need to hold out, and make the console more inviting to those who are still on the fence. They need bundles. They need limited editions. They need ADVERTISEMENTS.

Also, once the next gen starts, they should have the price advantage over Orbis/Durango. That should help, somewhat.
BLow  +   1109d ago
To be fair, isn't this one of Nintendo's first consoles (or one in awhile) to be sold at a loss. At least that's what I thought and I may be wrong so jump down my throat because I'm just asking a simple question. If so, that may explain some of the losses they have encountered.
kma2k  +   1109d ago
Yes you are correct sir selling them at a loss
TongkatAli  +   1109d ago
Nintendo isn't going anywhere, no worries. The 3DS is number one everywhere.
LOL_WUT  +   1109d ago
The only reason why the 3DS is currently number one is because of the price cut it got early on. They practically saved it from being a huge failure now this comes up all I have to say is OUCH! ;)
n4f  +   1109d ago
yeah what ever happen to the competition.
MegaLagann  +   1109d ago
"The only reason why the 3DS is currently number one is because of the price cut it got early on"

Surely it couldn't be selling because it has GAMES!??! Nope, it's only selling because of the price cut, nothing else.
Donnieboi  +   1109d ago
What is 3ds worth when compared to Iphones and Android? I know it's a dedicated handheld, but it's sales are being absorbed by phones. So to an extent, Nintendo cant rely on the 3ds alone to support them forever.

Aside from backwards compatibility with Ds games, and some current/upcoming Shin Megami Tensiei And Monster Hunter games, I dont see any other appealing games coming out for 3ds.
#3.2 (Edited 1109d ago ) | Agree(2) | Disagree(0) | Report | Reply
DarkHeroZX  +   1109d ago
Uuuh the 3DS just started making profit after the release of the 3DS XL. What's the point of selling a device if you lose over $25 bucks on everyone you sell? Remember the ps3 sony lost over $200 in the beginning and despite the ps3's success lost millions! Sure they can boast about selling far more 3ds' over the vita but atleast Sony isn't being hit as hard despite pathetic sales. Almost every Vita Sony sells is profit and now the ps3 is profit. Nintendo just got back on track with the 3DS XL and now they got themselves into another rut with the Wii U.
DA_SHREDDER  +   1109d ago
Who cares?! This only means one thing. That sooner than later there will be a price cut!
MadMen  +   1109d ago
See previous posts

WiiU will be a failure

in comparison to the Wii
RTheRebel  +   1109d ago
360 last place :(
MadMen  +   1109d ago
And that has what to do with the statement?

Nothing, exactttly
RTheRebel  +   1109d ago
this should be popular with the drones in 2 minutes
TongkatAli  +   1109d ago
Dude, you're a Nintendo drone so what is the difference?
ShaunCameron  +   1109d ago
That's funny because down the page was an article about how Nintendo's recent 3DS hardware sales helped offset the Wii U's losses.
omegashintomon   1109d ago | Spam
5eriously  +   1109d ago
I don't wanna say "I told you so"!
I don't wanna say "I told you so"!
I don't wanna say "I told you so"!

Nah, I wont say it, I'l rather keep quiet and hold my peace.
Drainage  +   1109d ago
told you say for what? Everyone already knew the thing wasnt gonna be super successful in sales....its still gonna have the best games though.
5eriously  +   1109d ago
Bwahahahahaha, that's the best joke of the day. Pity there is no price to be won for dreamers. Did you ever play anything else than Nontendo soft-core? I don't think so.
Kevlar009  +   1109d ago
A year is longer than 5 months (from WiiU launch in November to March 31st). Remember last Summer when Nintendo predicted a huge loss from declining Wii sales and a poor 3DS start? There's your answer
#10 (Edited 1109d ago ) | Agree(1) | Disagree(3) | Report | Reply
CaptainN  +   1109d ago
Wait didn't nintendo today put out their numbers and said they made profit???? What is this article talking about? How can the have losses if they in the end made profit?
Skynetone  +   1109d ago
With zero games, its not doing too bad
stragomccloud  +   1109d ago
Isn't it really waaaaaaaaaaay too early to be all doom and gloom? After all, look at the PS3 and the 3DS and where they're at today.
Outside_ofthe_Box  +   1109d ago
Hardly anyone ever thinks like that.
MegaLagann  +   1109d ago
Hardly anyone on N4G thinks.
ufo8mycat  +   1109d ago
Yes look at where the PS3 and Sony are at today. Record losses.
stragomccloud  +   1109d ago
Indeed. But to be fair, Sony really turned the PS3 around by 2008/2009.
user4693217   1109d ago | Spam
1upgamer99  +   1109d ago
Oh, here we go again. Look at the 360/PS3 sales same time frame....The trolls are going to troll...I get so sick of it...The NUMBERS speak for themselves. For gosh sake Wii U has sold MORE than PS3/360 their launch...Also and more importantly today it came out the Wii U has an attach rate of 3.8 per Wii U sold....
I find it rather unlikely that PS4/720 are going to sell any faster than Wii U. I for one will not be buying Nextbox, but will be picking up a PS4. Sony is passing Microsoft up in sales now, I think people are getting the message it is about the games!
stragomccloud  +   1109d ago
I know that no matter what I'll be getting a PS4 in addition the Wii U I already own, but who knows. Maybe Microsoft will surprise me in such a way as to get me to buy their next console. For now though, I just feel like my gaming rig fills the multiplatform role for most games.
#15.1 (Edited 1109d ago ) | Agree(3) | Disagree(0) | Report | Reply
Pillsbury1  +   1109d ago
I see at the end of year when ps4 comes the wii u dropping price. It will be again the cheapest console which will generate more sales
1upgamer99  +   1109d ago
I don' think PS4 will be out this year. If you have read the articles the past week or so, Sony has said they are going to let Microsoft launch first. It has been all over N4G.
PopRocks359  +   1109d ago
Okay, I've had it. What is this, the third duplicate of this story? Who are the idiots approving these?
ACEMANWISE  +   1109d ago
Welcome to Sonyland
The game industry is in a tough market. It would be so much easier for these companies to make it if the core gamer base were large enough to profit.

Instead they rely on making their products appeal for other hopes they can expose the product of gaming and permanently grow their consumer base.

Being a social and popular product is a very powerful, and self driven, way to succeed in the business sense. Yet it is one of those strategies that no industry can pin down forever. Eventually, the fad moves on and each industry returns to their core value.

In the scope of gaming the core value resides in the interactive quality of the game itself. While the values of socially driven gaming relies on the person they play with. In a popularity driven system the values shift more toward the reputation of the person who plays.

It matters not the quality of a console or it's games (as proven by Sony this generation). What matters
is of little control from these game companies
outside of hooking people, and their digital games, to an account and forcing a commitment to keep their games.
Jek_Porkins  +   1109d ago
Selling over 3 million in only a couple of months is still pretty good, I'd expect them do sell more when they show off some of the first party games people actually want. I was blown away by the last Nintendo Direct and I know I cant be the only one. The lack of third party support is troubling, but everyone here at N4G seems to think the Vita is perfectly fine without third party games, Nintendo should be alright as well.

Honestly they haven't had decent third party support since the SNES.
Dlacy13g  +   1109d ago
I think the WiiU is going to continue to struggle unless Nintendo gets their heads out of their assess and does a better job of marketing this console and actually explaining to the masses that it is an actual console and not some add-on.

Sony and MS must be smiling with glee at this news.
wiiulee  +   1109d ago
lol didnt nintendo just post a profit...and wiiu falters as they sell over 3 million in less then two months, as 3ds is over 25 million more then psvita....when games are on the way....yeah they are really faltering
Droid Control  +   1109d ago
Its the Gamecube 2.
swice  +   1109d ago
Impress me Nintendo. Then I'll buy your Wii U. Show me my favorite mascots in HD like you promised. Remember the "hardcore" like you said you would. I know it's still early, but this is what needs to happen for me

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