Top
280°

Nintendo CEO Seen Missing Profit Target as Wii U Flounders

Iwata will announce a second straight annual loss tomorrow, losing 18.7 billion yen in the 12 months ended March 31, according to the average of 15 estimates compiled by Bloomberg. For the year started April 1, Nintendo may post operating income of 70 billion-yen, according to the average of 19 estimates -- short of a target he said was a personal “commitment.”

Nintendo’s Wii U, its first new home-gaming console since 2006, is failing to meet sales targets amid a delay to software releases that Iwata said were crucial to winning over consumers who increasingly play games on smartphones and tablet computers. Sony Corp. (6758) and Microsoft Corp. are also preparing to release upgraded consoles this year, adding pressure on the 53-year-old executive who has been in the role since 2002.

Read Full Story >>
bloomberg.com
The story is too old to be commented.
majiebeast1189d ago (Edited 1189d ago )

Is Iwata gonna step down after 2 bad system launches? You will see it on the next Nintendo Z(fiscal meeting is this week i think)

Abash1189d ago

Im very interested to see how they address the poor sales of the Wii U when they take the stage at E3.

sengoku1189d ago (Edited 1189d ago )

in most Japaneses company's this would mean it's time to step down.
i wonder what will happen.

ToaLugia1188d ago

It would be hard to fuck it up this E3. If they do, man. Idk what to say then.

decrypt1188d ago

Well many companies globally are missing targets. Its called recession. We are in a situation where people dont have the money to spend.

I wouldnt be surprised if the next consoles faced the same slow response.

US and Europe are the biggest consumers of this product. Look at their economies today. If any hope of growth is to be attained console makers needs to focus on markets like China and India.

dangert121188d ago

@decrypt

What gets me is the game prices...we are in a recession, cost of everything goes up, but nothing has gone up like the prices of games...and nothing has quiet gone down like the quality of them either

GT671188d ago

Nintendo could have easily remedy the problem if they open SNES profile re-do or re-master those games in HD

dcbronco1188d ago

@decrypt

I don't think the economy has anything to do with it. Next generation will sell. When the recession first hit people fell back on consoles as a cheaper alternative to other forms of entertainment. People seem to have forgotten that. One game can last far longer than two trips to the movies.

Next generation consoles will show that the problem is with the length of the current generation. Nintendo's current problem is that they made gimmick controller and re-upped on the current generation's specs. A huge mistake given the current generation has worn out it's welcome. See Ascension and Judgement as further proof.

Kevin ButIer1188d ago

ooo my... I though Nintendo was doing great with the ds, 3ds, and Wii sales all over the world, Wii U is falling short in sales but come on... those loses? tell me about poor management

+ Show (5) more repliesLast reply 1188d ago
GamersRulz1189d ago (Edited 1189d ago )

Wii money evaporating as we speak.

LOL_WUT1189d ago

Time for Iwata to step down his influence in Nintendo is only hurting the company. ;)

ShinMaster1188d ago

I remember Miyamoto talking about their first party franchises and wanting to see new things being made by Nintendo devs, but Iwata didn't like that idea, saying that they're not like other companies and that they have a tradition.

lilbroRx1188d ago (Edited 1188d ago )

First off, that is losses for "last year", and they are actually losing less. They are still actually making money overall.

From the actual article all of the Nintendo haters are misquoting

"Nintendo may post operating income of 70 billion yen, according to the average of 19 estimates -- short of a target he said was a personal “commitment.”

Thats 18 billion in losses with 70 billion in "incomse". That is only 30 billion short of their original goal, and most of it is blamed on the Yen losing value, not sales.

Strange thing is that Sony lost more money than that in the same time frame, but no one is attacking their heads.

Root1188d ago

@lilbroRx

"Strange thing is that Sony lost more money than that in the same time frame, but no one is attacking their heads."

First of all were talking about Nintendo not Sony

Secondly....Sony has been attacked nearly all this gen so you know...

Shnazzyone1188d ago

@root

Really? because last i checked nintendo's been the whipping boy for about 10 years now.

Root1188d ago

@Shnazzyone

LOL

If you say so

They made a mistake with the Wii U and people are speaking out. Unlike with Sony people didn't twist every little thing good or bad

+ Show (2) more repliesLast reply 1188d ago
jcnba281188d ago

I don't think Nintendo are worried they have billions in the bank.

Sony on the other hand...

CEOSteveBallmer1188d ago TrollingShow
gatormatt801188d ago

@griever137

Sony is indeed the larger corporation, but larger does not always mean more money. Yes Sony has more products, but that also means a larger overhead/operating cost. Nintendo has more money to play with than Sony, it's a fact. I've heard some analyst's say Nintendo could report losses every year, for the next 40 yrs, and still be in the console industry.

http://financials.morningst...

http://financials.morningst...

cee7731188d ago

@griever137

yes nintendo and microsoft both have more money than sony to play with yet sony's the only one who takes risks of all 3 giants thats what I dont get the wii U is so weak lots of new game engines are skipping the platform.(frostbite,Unreal engine 4)just to name a couple. meaning wii U will be missing alot of future 3rd party games down the line

some devs(Mark Rein) said it have the same odds of running UE4 as Ps3 or xbox 360

noirzillagamer1188d ago

Just to help you understand mark rein meant what he said along with his company said fall of last year... ue4 will be scaleable so it wasn't intended to make thay statement to seem like a stretch for it to happen he meant it as a fact that shouldve been known by now. Fronstbite is EA's child is it not? Do you think thay its missing the wii u because of power? That answers is NO!

+ Show (1) more replyLast reply 1188d ago
Deku-Johnny1188d ago

I doubt it, yeah the 3DS and Wii U had bad launches but the 3DS is selling well now and when the Wii U has as many great games as the 3DS has it'll probably start doing well too, you shouldn't be too hasty.

You have to take into account the fact that through all their latest console's failings whilst he's been in charge they have had two of their best selling consoles, one of which is the best selling console of all time.

Shnazzyone1188d ago

SHHHH Don't tell him that missing a profit target doesn't mean they didn't make a profit. Don't tell anyone of N4g that this doesn't mean nintendo wasn't profitable this only means Nintendo was not as profitable as they wanted to be.

+ Show (4) more repliesLast reply 1188d ago
NYC_Gamer1189d ago

How much is 18.7 billion yen in dollars?

majiebeast1189d ago

Around 187 million dollars.

fr0sty1189d ago

188,870,000 to be exact.

Jadedz1189d ago

:'-( (I won't blame anyone wanting him to be fired, or to step-down).

die_fiend1188d ago

Do they mean Wii U flounders? The title makes no sense - well done Blomburg (see what I did?!)

MonkeyNinja1189d ago

Not trying to be a Nintendo-Hater, but I honestly don't think that 1st party titles are going to do much for the system. I think the WiiU is going to be just another N64/Gamecube scenario as far as sales are concerned.

Qrphe1189d ago

I personally don't care about multiplat 3rd party support anymore. I'll ended up buying multiplats for PS3/PS4 anyhow. Am I worried about Nintendo's wellbeing? No, they'll be financially fine. I do expect this E3 to be Nintendo's best yet.

fr0sty1189d ago

Nintendo has survived bad generations before. They made the mistake of picking the wrong gimmick this time around. Motion control worked wonders last gen because nobody had done it before and it required specific hardware to pull off. None of the other guys could do it and not be seen as copycats, and it worked.

This time, N relied on a touch screen interface. Once Sony and MS came up with phone apps that did the same thing on devices we all already had in our pockets, Wii U's appeal went down the drain to many.

I personally would have preferred them going with VR, Oculus Rift looks really cool and I think that route will be the next big thing. JMO.

ps3_pwns1188d ago

i agree with you in this day and age people get bored of seeing the same thing unless its social related and nintendo does a lot of the same thing and these people who bought the wii the ds and then the 3ds they see the wii u and they see the same faces of nintendo characters in every game and these games arent online mp with good online and mics and such. nintendo needs to upgrade mario kart to epic online game and bring in the new super smash and some new ips we havent seen before.

starting out with nsmb u and nintendo land for a console thats supposed to feel fresh and new is lame. new ips is a good way to start off a generation. also no one gives a crap about the wii u pad they already have an ipad that has better tech in it and works better. no one is gonna be wowed by that. also off tv play is taking away from the gaming experience. now you have people watching tv and playing the game. when they would usually play just the game and focus on that and having a fun gaming experience.

Nintendo doesnt care about the wii u because its still not giving world wide launch releases for its games in america. nintendo games take far less mmoney to make as making a game with the lack of graphics and in familiar areas with familiar characters is a lot easier then what other devs have to do. its why people keep saying devs cost gonna go up for the ps3/x360 and be hard so nintendo been having it way easier dont see why they cant step they game up.

Baka-akaB1188d ago (Edited 1188d ago )

Then again they stilll made lots of money during the n64/gcube era . The issue was their reputation as a third choice for everyone not in love or solely in love with their first party titles and a meager few worthwile 3rd party games .

So no i'm not worried about them , i just want and hope for better choices of games than with those two consoles

hellztourguide4201188d ago

That would be fine with me. Nintendo actually made money on the Gamecube despite only selling 22 million copies of it. Doesn't mean it wasn't significant or anything...it had some of my favorite games of all time exclusive to that system. If the Wii U can be as successful as that, Nintendo and Iwata will be just fine.

+ Show (1) more replyLast reply 1188d ago
sherimae24131189d ago

did the wii u released in the wrong time?....

zeal0us1189d ago

more or less...
-bad timing
-poor launch line-up
-too much focus on the tablet itself instead of overall console

Nintendo imho went from a family focus(wii) to a single focus(WiiU). What made the Wii sell it was something the whole family can enjoy.

Before the WiiU release some people simply thought it was a addon to the Wii. The tablet concept was a great idea in theory but not so great for families with more than one kid. Not to mention the tablets are costly and using more than one can cause a hindrance on the WiiU system.

Nintendo will have a hard time drawing those families who went out and brought the wii to the wiiu.

colonel1791189d ago

The Wii U instead of the Wii would have been great an revolutionary. When the DS first launched, I wanted a Console with a screen on the controller so that it was like it. However, after Apple launched the iPad and made every tech company release a tablet, the Wii U feels outdated. Not only in the graphics/tech department, but in the controller too. Having a resistive touch screen is unacceptable as of today's standard. A lot of people have iPhones, Galaxies, etc and even cheap knock offs come with much better touchscreen and resolution than the Wii U Remote.

With that said, it is also good to note that Nintendo certainly will release games that will take advantage of the controller in a clever way as they always do, but they would have to run out of franchises and invent new IPs to keep people interested for at least five years, since I don't see third party support improving at all. At least maybe indie games will be better since they have been on the PS3/360.

I am on of Nintendo fans that only buys their consoles for their first party games. I rarely buy a third party game for a Nintendo console unless it is really good and interesting. A lot of people do, but even I feel that it won't be enough this generation.

Although it is really impressive what Nintendo is doing with the 3DS. I've never understood how they can get great games for their portable consoles and a lot of third party support for them, but rarely on their home consoles.

mcstorm1188d ago

@colonel179 do you know the difference between resistive and capacitive screens?

resistive screen are better and more precise than capacitive screens it is also This screen is more durable as it is not made of glass.
These screens can operate at any humidity levels and it also costs less then capacitive screens to make.
This is the reason why Nintendo use them.

The WiiU will be fine come the end of this year as we will see games like Mario Kart, Zelda and more.

The Biggest issue the WiiU has at the moment is it is getting the same games as the PS3 and 360 so why would people look to send £300 on a new console to play the same game they can buy on there current console for £40?

This will be the same when the PS4 and Next xbox come out. If COD, BF ect are on the PS3 and 360 as well as the next xbox and PS4 why will most people upgrade?

Also everyone was saying the 3DS was a flop and would be walked all over by the PSV but look how that has turned out.

The WiiU will be fine and even though it will not hit the numbers of the Wii I expect it to sell as well as the next xbox and PS4 once they are both out and had 12 months on the market and people start to move to the next gen consoles.

Perjoss1188d ago

I love my WiiU, but I do feel they should have released it around the time the original Wii was realeased.

Clarence1188d ago

Not really. Nintendo counted on the tablet gimmick. It backfired. The Wii was a gimmick that worked. The Wii u isn't even next gen. Count the fact that many 3rd party developers are not supporting the system.

Once Nintendo started focusing more on family type games the writing was on the wall. Why buy a game on the Wii u if it will be available for the PS4 and 720.
There is no way they will be able to compete with Sony and M$.