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Nintendo says slack console sales to hit operating profit, weak yen to lift bottom line

"We've made some progress in profit but in many ways we didn't score perfectly," Chief Executive Satoru Iwata told reporters at a briefing in Osaka. Iwata is hoping to steer Nintendo to its first annual operating profit in four years.

Reuters:
"Many of Japan's manufacturing companies have significant operations outside the country and are likely to see a positive impact on earnings from the yen's weakness. Separately Wednesday, camera and office equipment maker Canon Inc also reported a profit boost helped by the yen's slide.

For Nintendo, the foreign exchange gains may ease short-term pressure to overhaul strategy.

But analysts have called on Chief Executive Satoru Iwata to shift to focus on mobile devices and to allow its games to be played on machines built by competitors. He has resisted such pressure so far, pinning hopes on making hits out of games such as "Mario Kart 8"."

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Nilla_Nate936d ago

You'd think Amiibo sales would almost make up for it. Damn things lol

Griever936d ago (Edited 936d ago )

I dont know why people are making such a big deal about a few million Amiibo sales. It is just a $13 toy, not a $400 console. Furthermore, how much do you think it costs to make them, distribute them and market them? Nintendo probably gets to keep only few dollars out of each sale. Even if each Amiibo costs only $8 to make including distribution and marketing, and Nintendo is making a heavy profit by selling them for $13, they only make $5 on each sale. In case of low priced products like kids toys, candies, snacks, stationery, soft drinks etc. you have to sell at least tens of millions if not hundreds of millions to make significant money.

gangsta_red936d ago

This is exactly why I believe their next console will be coming sooner than a lot of believe. They just can't sit there for long a bleed money.

Summons75936d ago

A new console this soon would hurt more than help. They also said they wouldn't release a new one until all WiiU owners are satisfied.

Griever936d ago (Edited 936d ago )

"They also said they wouldn't release a new one until all WiiU owners are satisfied."

How will they evaluate that? How will they find out if every Wii U owner is satisfied and that it is alright to release a new console? That is just PR talk. New consoles are released according to strategic roadmaps and planning done years in advance. They probably already are developing a new console and know when they are going to release it regardless of current Wii U owner's wishes and satisfaction level.

gangsta_red935d ago (Edited 935d ago )

Are WiiU owners satisfied...and how would they even gauge that?

I think the more they let the WiiU slide the more it will hurt Nintendo. Better to cut their loses soon than have to pay for it down the line.

Edit:
Griever beat me to it...problems with having to type and work at the same time.

jholden3249935d ago (Edited 935d ago )

Well, thing is they're not "bleeding money". Two running quarters in a row back in the black. And even when they were losing money, it was only a fraction of the losses seen by other console manufacturers, and no one expects them to cut their generation off early. PS3 and 360 lost money for half a decade and went on to have the longest generation in gaming history.

Releasing a new console would just destroy the near 10 million-strong user base and they'd have to start from scratch. The longer they keep the Wii U around, the more profitable it becomes.

Nintendo consoles will always be like they are now- Nintendo games and 3rd party exclusives. Either you like their games or you don't. If a person isn't interested in Wii U, they won't be interested in it's successor either. All it would serve is to royally piss off the 10 million gamers who have already invested in A Wii U.

If you read the comments by Iwata, I believe his words were "Wii U isn't over yet, we've got plenty more to come for it and many unannounced titles". So, Wii U will have a long, full life cycle, perhaps even longer than the Wii. To believe otherwise would be foolish.

Unlike other manufacturers who abandon their hardware in just 3 years, Nintendo is smart enough to understand that if you release a console that millions have invested in, you MUST give it a full life cycle. Otherwise you destroy consumer trust and no one will buy the next one.

Besides, Smash Bros sells 4 million on Wii U. Mario Kart 8 sells 5 million. Super Mario 3D World sells 5 million, NSMBU sells 6 million, and the list goes on and on of games that have sold over 1 million on the Wii U. Why throw that away? Sales are growing with each passing year. By the true end of the Wii U's lifespan, many of these games will be at 10 million sold.

Not only that, but the Wii U has been Nintendo's return to form. The software has been beyond exceptional, and they're really making amends with fans for the neglect of of the Wii era boom. I think Iwata said "Wii U will be around until fans are satisfied", or rather, until they've released all the great games fans have been clamoring for and they know they've done all they can to satiate the appetites of their fanbase.

superchiller936d ago

Iwata, master of excuses, and subject of one of the greatest internet memes: "Please understand".

traumadisaster936d ago

I don't see how a new console would help the fact they can't release a game based on link or metroid every year.

If they did get dying light on a new ninty console would it have 1080p60fps with better gfx than ps4? Cause the 20 million who just bought a ps4x1 and wiiU prob would not spring for it.

Only people left is those still on last gen but prob don't have the budget anyway.

Man I would love to see them pull a 2009 Apple turn around...

Macdaddy71935d ago

You know the big dogs at Nintendo hate telling there share holders profit is down cause of low console sells after Ps4 n X1 are breaking sell records, if I was a share holder of nintendo I would ask for someone job!!! Two reasons 1st for making a wii with a gamepad n not the controller that made Wii sell so good, 2nd for not going true Next gen just doing Wii 1.5,
If Nintendo was smart they would have went with a true next gen system with a controller for hardcore gamers, n got third party from the start.... They would have sold record number systems for the plus side, not record low numbers

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