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Exactly How Bad is the Nintendo Situation?

IGN: "Today’s financial results reveal Wii U sales below even the most pessimistic expectations. But should we be worried about Nintendo?"

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NYC_Gamer1153d ago

Nintendo needs to hire some new leadership who better understands today's home console gaming market

dark-hollow1152d ago (Edited 1152d ago )

I don't see that much of a problem since the new leadership managed to make two extremely successful platform of Wii and DS and the 3ds is doing very well too.

The problems with Wii u are:

1-price
2-lack of games
3-lack of a good marketing campaign.

jimbobwahey1152d ago

I think the Wii was the exception when you take into account that the N64, GameCube and now the Wii U have all performed very poorly.

Nintendo does well in the handheld market, but when it comes to home consoles they have absolutely no idea what they doing and save for striking lucky once, they get absolutely dominated by Sony and Microsoft.

I can see Nintendo going handheld-only and focusing on that market eventually, because they just don't have the resources to keep up with the home console industry at all (see them struggling to create software for a console that's part of a generation that's now ending) and it will only get worse as time goes by. With the handheld market though, that isn't a concern and they can pump out their money makers there.

gaffyh1152d ago

It's mainly lack of games, and because Nintendo haven't supported it well with first party titles, the console doesn't sell, and then third parties give up on it. It's a vicious circle.

modesign1152d ago

not really, the problem is the wii has hit the skids, its no longer "cool, hip" or a fad, its now a dud, then they blew their money on a wiiu, which turned into a dud from day 1. usually after that you fire your executives and think of a new strategy before your company hits rock bottom.

there handhelds division is successful but you cant depend on handhelds, just ask sony. lol

the real question what did nintendo do with the revenue they did get from the wii.

ShinMaster1152d ago

The GamePad just doesn't have the same appeal as the Wii Remote. Period.

I think Nintendo was counting on the casuals and moms to buy into it the same way they did with the Wii. But that novelty has worn off.
And that's the thing about causal markets. It is fad driven and fads don't last.

The Wii U's performance is right in line with the GameCube and N64.
The Nintendo fanbase just isn't as big as the internet makes it seem.

greenlantern28141152d ago

I think the biggest problem is their marketing or lack there of, I have seen 3 wiiu commercials since it launched. And I know quite a few people who think it is just a really expensive tablet controller for the Wii. And the price is the next problem since many people are unaware of the features it has and the perception is that 32gb HD and 2 gb of ram are just not enough when looking at consoles with 500gb HDs and 8 gb of ram.

+ Show (3) more repliesLast reply 1152d ago
MizTv1152d ago

I think they just need some good games

SuperLupe1152d ago

The blame goes to the top management completely out of touch with what the market needs. The Wii U is a console in the wrong time frame with no market hence nobody actually going out there to buy one.

It happened with the Xbox One too until the 180 but they are still suffering the consequences.

And it also happened to the PS3 with an "unneccessary" Cell chip and using the PS3 as a trojan horse for bluray that pretty much gave an open boulevard to the 360 to get to the point it is today.

Luckily for Sony and MS they were able to turn the ship back in the righ direction (Xbox One hasn't launched yet but I'm more than convinced that MS will be just fine). As for Nintendo they have an extremely tough journey ahead of them.

RobbyGrob1152d ago (Edited 1152d ago )

I think you're right. Nintendo have clearly had a much too optimistic confidence in Wii U as they in large pretty much did something that they A) didn't need to do and B) have done something that Nintendo never really did before either; released a console merely to deliver better graphics. Nintendo have released amazing games without ever having to do graphics better than its opposition. Nobody really needed Wii U as the people who love Wii obviously don't do so for its HD resolution, which Nintendo have recently admitted is what is slowing Nintendo-native developers down as they're not used to having to make games made for such high resolutions, which apparently is what is creating the lack of games, which is why the console doesn't have any edge. In terms of innovation, the controller has a screen in it... so what? Their DS consoles have had that for many years, and the people who consider having such a function important obviously already have a portable console. The Wii U controller could have been released for the Wii anyway.

Consoles need a purpose, and Nintendo have yet to give a good one to the Wii U.

kenshiro1001152d ago

Solid observation. I like Nintendo and would hate to see them fail. They need a steer in the right direction.

ShinMaster1152d ago

So was the PS2 a Trojan horse for DVD as well?
Come on, I think Blu-ray has proven itself by now.

Guwapo771152d ago

I am very thankful for Sony's Trojan horse, we could had been stuck with DVDs or HD-DVD.

Pretty much spot on with your statements.

+ Show (1) more replyLast reply 1152d ago
3-4-51152d ago

They are roughly in about the same situation as the PS3 was at this exact time after it's Launch back in 2006.

Literally maybe 100,000 units difference in terms of what was sold, between the two.

Look at the turn around the PS3 has done and understand that Nintendo has been at it much longer than Sony and will also find a way.

In fact, their victory plan is already in place, most people aren't open minded enough to see it though.

We've become a society of " know it alls" without actually knowing much at all.

5-6 huge games for Wii U to be released, plus another 5-10 in dev we haven't heard of yet.

Nintendo could literally "pull a dremcast" and fail this gen and still have Billions to spend on the next gen after this one.

That is worst case scenario.

kneon1152d ago

The situations are very different, if the numbers I saw are correct then the Wii U has only sold about 500,000 units for the first 6 months of this year. The PS3 never sold that poorly.

You are making the mistake of looking at the total sales since launch. The launch was fine but that was because of pent up demand from the core Nintendo fans. If you were to plot this on a graph you would see sales have plummeted and there is no indication that they are going to turn around any time soon.

Even if things pick up during the holidays they might still end up selling less total units in 2013 than they did in just two months in 2012.

Reibooi1152d ago

Comparing it to the PS3 isn't exactly a good comparison. The PS3 did come from behind to a degree but it was competing against next gen consoles looming on the horizon.

If the Wii U had come out at the start of last gen I would be 100% with ya on saying things could be easily turned around. But where the Wii U is in time it will be facing the Xbox One and PS4 and most gamers will not want to pay what is a similar price for a Wii U when it's a last gen console.

Will games turn it around? I don't know. For me personally I can say yes. At the start of the Wii U I wanted nothing to do with it but now I will be getting one for Bayonetta 2, X, Fire Emblem x SMT, Wind Waker HD and a few others that have slipped my mind. For me those games are enough of a reason to get the Wii U. But I don't know if everyone will think that way, especially with the PS4 and Xbox One right around the corner.

3-4-51152d ago

It's about total sales at this time and Wii U is over a million.

3D Mario - 2-5 million

Mario Kart 8 - 2-5 million

Super Smash Brothers - 2-5 million

Legend of Zelda - 2-5 million

Wind Waker HD - 300,000-1 million

Pikmin 3 - 1 million

FE X SMT = 200,000-800,000

These games will be responsible for another 1 million Wii U's sold, at least.

Anon19741152d ago

Another thing to consider when contrasting this to PS3 numbers is the competition. The Wii-U is underpowered and only $50 cheaper than a PS4. While the Wii enjoyed hype and a price advantage over it's competition, the Wii-U doesn't have much momentum to speak of and facing down against the PS4 and XBox One this holiday will be an uphill battle, to say the least.

On a side note, I find it a little odd IGN is accusing Sony of hiding Vita numbers by lumping them in with similar electronics. Are they also hiding sales of their cameras by grouping those together, or are they hiding something by not breaking down their television sales on their financials per model? Of course not. Investors don't expect or care to see a detailed, model by model sales breakdown of every device the company makes when the financials come out. Hell, Microsoft flat out skipped reporting Xbox 360 figures for two quarters back when they started seeing year over year declines in 2007 and no one said boo. There's nothing sinister about grouping similar products for the purpose of simplifying financial reports. Every company does it, unless they only have a handful of products to start with.

Solo2271152d ago

The difference with the PS3 is that SONY had built a "future proof" system. And knew that the plan was to throw all resources into first party titles to build the hype.

Nintendo is trying to do that with a system that should have came out 6 years ago. With all the money they made from the Wii, you would have expected them to be way ahead of the game when it comes to the next gen. But their fatal flaw was falling for there own hype.

They built a system thats outdated and still relying on the motion tech to carry it.

Hardly comparable to what Sony accomplished and definitely not gonna deal with the same fate. The Wii U will eventually get black balled out of this gen just like Dreamcast did.

SilentNegotiator1152d ago (Edited 1152d ago )

The comparison to Ps3 is completely inaccurate.

-Ps3 didn't have an European market until half a year in.
-Ps3 was a high powered, expensive system, not weak compared to the competition and yet almost the same price range.
-Ps3 quickly garnered (and kept) considerable third party support, unlike every Nintendo console post-SNES.
-Ps3 has NEVER EVER EVER EVER EVER EVER EVER EVER sold as poorly as Wii U has in the last 6 months. EVER.
-Gamecube only had 8 games sell 2 million or more copies in it's lifetime...and you're predicting that Wii U will reach half of that with some of its nearest titles? Please. Wii was a rare case where the system sold a lot of its software by having an obscene number of hardware sold and being incredibly cheap. Wii U's launch was an explosion because there was so much pseudo-demand; it was supposed to be sold out for months and it wasn't sold out for a week.

Stop kidding yourself with comparisons to Ps3. The situations are not even close to being similar. In a month or two, the "100K difference" (if that's even accurate) will be gone and the gap will continue to grow and this Ps3 comparison that fanboys keep using will continue to look sillier and sillier.

+ Show (3) more repliesLast reply 1152d ago
OmegaSlayer1152d ago

Big question to the WiiU owners...
If the WiiU fails and Nintendo releases a new hardware in 2015, will you buy it?

sincitysir11152d ago

Of course they will. People always buy for what they believe in

PopRocks3591152d ago

Whether or not the Wii U is ultimately a failure is irrelevant. There is no way Nintendo is putting out another console. They stuck it out with the N64 and Gamecube. I guarantee they are sticking it out with Wii U as well. Mark my words on that.

Movieworld1152d ago

Yes. I have owned every Nintendo console and i've enjoed every last one of them especially the Wii U why would I not buy the new one?

BOWZER351152d ago

Also I think once the new games come out and maybe sell more they will change the consoles rep online. I mean it gets bashed so hard by the media but when people actually see mine, (family and gamers) all the bashing goes away and they respect it. They either want one our say that it actually isn't that bad. The console speaks for itself.

nosferatuzodd1150d ago (Edited 1150d ago )

nintendo will be fine all they need is some good games thats all the system is very easy to develop for and they need to work on their network get rid of that stupid online phone number no one can remember that crap

+ Show (4) more repliesLast reply 1150d ago
Reeze1152d ago

Wii U sales are bad now, but more key first party titles will pick up the pace.

_QQ_1152d ago

yeah this report was only up to june.

Drekken1152d ago (Edited 1152d ago )

160k units sold last quarter. WiiU sales are in the tank and circling the drain. Mario 17 will help though, right?

Link: http://n4g.com/news/1322661...

T21152d ago

I am wondering if they wouldnt make more cash just making games again .. Or they could try in say 2015 to port some games to multiplatform... ? Unless their console sales take off of course

nosferatuzodd1150d ago (Edited 1150d ago )

dam Reeze
look at all the disagrees you're getting i bet there from Call of duty fanboys

thomasmiller1152d ago

WHAT BAD SITUATION... http://mynintendonews.com/2... YEAH SORRY TROLLS nintendo is going to do fine, grow up and get over it!

sher123win1231152d ago SpamShowReplies(3)
imXify1152d ago

They still do fine because the WiiU never had a price cut, so they still can generate the max profit from it.

deep_fried_bum_cake1152d ago

Max profit? They've never made any profit on it. The WiiU is sold at a loss. They are profitable because of other aspects of their business.

ABizzel11152d ago (Edited 1152d ago )

BS Wii U isn't selling for a loss in any capacity. Their profit comes from the few Wii u's, Wii's, and DS that are still selling, but mostly from 3DS + software.

Wii U cost no more than $260 to make, and most breakdown analysis of the hardware points closer to $230 for the console + controller. And those analysis were done back in 2012 when the leaks of the hardware were all but confirmed.

http://www.forgetthebox.net...
http://www.cinemablend.com/...

Nintendo needs major first party games, discontinue the basic model and sell it off at $199, drop the price of the Deluxe model down to $249 and add a real HDD in it (at least 120GB), and make games that use more than 1 tablet controller so they can sell another tablet controller as another source of revenue.

This will get sells up to respectable numbers, they would still make a profit off games, tablet controllers, and a slight profit on consoles.

Nintendo you don't have another Wii success story on your hands so you need to produce some great HD games and prepare for the next generation of consoles while you're at it.

With consoles it's go big or go home, and Nintendo you're on your way out of the console business if Wii U fails and you learn nothing with your Next console.

deep_fried_bum_cake1152d ago

ABizzel1

*ahem*

http://www.eurogamer.net/ar...

Now last I checked there hasn't been an official price cut yet. So unless it's now cheaper to produce the WiiU (which it may well be, I don't know) then it is still being sold at a loss.

Concertoine1152d ago

Nintendo will be fine, its the wii u we're worried about. They need to do more to push the system.

sher123win1231152d ago SpamShowReplies(1)
Death1152d ago

Nintendo is doing fine financially. WiiU sales are below expectations though. It is not a bad console and well worth the price tag. Nintendo just needs some more software to get people to buy.

sincitysir11152d ago

No offense but it's nothing more than an hd ds.

deafdani1152d ago

I agree, partially. There's a bad situation for the Wii U console, but not for Nintendo as a whole.

nosferatuzodd1150d ago

don't say that the Xbox fan boys doesn't like that they know if nintendo start doing well they'll be in last place again look at all the disagrees you're getting

+ Show (4) more repliesLast reply 1150d ago
hollabox1152d ago

Looks like having an small presence at E3 did nothing for their console business.

hollabox1152d ago (Edited 1152d ago )

Oh the disagrees! I'm just saying Nintendo failed to create excitement/buzz by using someone who can barely speak English against a plain looking conference room. Every title Nintendo announced everybody expected. I actually expected more titles like a Metroid, Star Fox Adventures, and home console version of Kid Icarus.

Overall its just poor management by Nintendo. Some of their actions is downright laughable. How do you not know it takes more people to create HD graphics? A concepts that has been around for over an decade. Why would you create a system that sells for $350 with maybe a third more performance than current gen? Nintendo failed to keep a steady stream of quality software release after lunch creating large gaps between titles. Nintendo squandered the opportunity to showcase their products at E3, the largest video game media event.

Instead we got a very boring Nintendo Direct with expected announcements. I know the hardcore fans were excited but people on the edge didn't seem to care to much, this is reflected by the recent hardware sales.

T21152d ago

It appears nintendo is convinced the wii model of fun over tech would continue forever, but it doesnt appear to be quite as successful ...

sincitysir11152d ago

Why do people get upset over a few disagrees? Only justify ur statement when u hve like 20 disagrees. Not 4-_-

SilentNegotiator1152d ago (Edited 1152d ago )

"BU BUB BUT that was a brilliant decision!! They're bad at doing teh E3 conferenc, so the obvious solution is to throw it away, not get better at it! What's millions upon millions of views (as well as media attention) compared to the amount of hardcore Nintendo fans that will watch Nintendo direct? Nothing, man. Nothing.

Oh, and how could Microsoft or Sony never think to have demo-consoles with demos of unreleased games within Bestbuy? What a revolutionary thought...I've never seen a demo Ps3 or Xbox in a BestBuy with game demos on it. Never. They just don't have Playstations or Xboxs setup in BestBuys"

hollabox1152d ago (Edited 1152d ago )

Nintendo direct was pretty bad, I don't think having an proper E3 conference could had been much worst. If these guys are professional at what they do there should be no excuses for a bad E3 conference, very amateurish. Satoru Iwata sounded about as monotone as the Clear Eyes commercials guy. That's not good when Nintendo is trying to get people excited to buy a Wii U.

Nintendo would had been better off letting Reggie do Nintendo Direct. Reggie is good at creating excitement and highlighting Nintendo's agenda and success. But nope they had Iwata do it, and since E3 and a little bit before sales has been dismal.

Now when you compare Sony's E3 to every one else, Sony came out swinging. Unlike MS and Nintendo, Sony knew how to get their point across, they created so much buzz during their presentation gamers and journalist completed overlook the PS4 having some of the same restrictions as XB1. Heck I was so impressed, I preordered the PS4 with plans on buying the X1 in January. Now that's E3 being done right, show off your hardware, show off your software, get people immersed in your presentation and they are going to talk about positively.

I don't know where you live but I see demos at Best Buy all the time with X360s and PS3s. Rather its demoing motion controls, headphones, or Sony demoing their Bravia setup with a PS3, Home Theater System, and their top of the line LED HDTVs. Microsoft usually release E3 demos as well during the conference so there's no need to stand in line at Best Buy. Doesn't make sense to me unless I didn't own that console but thinking about it. Obviously with the sales numbers Best Buy demoes didn't work for Nintendo.

Stroke6661152d ago (Edited 1152d ago )

Ur obviously not a nintendo fan but you saw the direct. Lmmfao, all these people can state how boring it was and that nintendo didn't make a good decision, how only the fanboys watched it bu bub but wait, how do you know anything about it unless you watched it or read about it in the media(thats media attention by the way). And lets get this cleat sony and ms have NEVER.....EVER...#Y2J had demos of games they presented at e3 in stores the week of the same e3.

I had an epiphany, no I'm no fanboy but satcasm is not sarcastic when its stupid.

SilentNegotiator1152d ago (Edited 1152d ago )

@stroke

Just because I saw the Nintendo direct, doesn't mean that even remotely the same amount of people saw them as do the E3 conferences.

"And lets get this cleat sony and ms have NEVER.....EVER...#Y2J had demos of games they presented at e3 in stores the week of the same e3"

But they have on XBL and PSN. And big deal besides; they don't have to show it off the same week as E3 to get it in people's hands before release.

Concertoine1152d ago

People who want a wii u have no conflict with that descision like how some might be deciding between ps4/xbox one. The system is unique, and the games played on it will probably feel very specific to that system. I dont admire the wii u for its power like i do the ps4, but its identity against 2 black boxes directly competing with largely multiplatform games.
When the wide variety of games start coming out, both hardcore (bayonetta 2, smash bros, X, SMTxFE) and casual (Super mario 3d world, pikmin 3, mario and sonic at the olympic games, mario kart) will start to buy the system, simple as that.

sincitysir11152d ago

It is not unique. At least not to Nintendo. Like I said before its an hd ds. Not a bad thing but don't say unique. Nothing is unique

Stroke6661152d ago

Its unique in that the screens are not connected. Its unique in that it has a different game library(however minuscule it is right now lol). Every system has something unique about it, the companies just have to learn to use it to sell their brand