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Analyst - latest financial data shows that Wii growth may be over, Nintendo knows something big has gone wrong

Nintendo, the maker of the Wii games console and the favourite safe-haven share on the Tokyo stock exchange, has stunned the market with a 33 per cent cut to its full-year profit forecasts.

Analysts described Nintendo's guidance as a "baffling and potentially very worrying" sign for worldwide sales of the Wii as recession curtails household spending around the world.

The company itself said that it expected to sell one million fewer Wii units by the end of 2008 than it had previously expected.

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business.timesonline.co.uk
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Foxgod3483d ago

its time for nintendo to release porn for woman games.
the controllers already have been optimized for it, and their fanbase is mostly female.
So they could hit a new market that way.

lokiroo4203483d ago

What foxgod, a funny joke, damn man, finally I can tell you good job!

ThanatosDMC3483d ago

Imagine grandma buying that game and you catching her in the act!!! EEEEEEWWWWWWWWWWWWW!!! Sexy???

gaffyh3483d ago

We all know what they'll do now, release a new colour or patterned Wii and milk the sales, then do the same thing again (as they always do), maybe a pokemon Wii or Zelda Edition Wii after that.

+ Show (1) more replyLast reply 3483d ago
LightofDarkness3483d ago

Let's hope this continues. Because this is what happens when you market towards a casual audience, you play by casual rules. That is, any sign of cash flow issues and the first things on the chopping block in most households are the luxuries, ie. hi-def TVs, new cars and, most definitely, VIDEO-GAMES.

This is what happens when you ignore your hardcore market; as we all know, hardcore gamers will walk through FIRE to get their hands on a shiny new piece of gaming. Cost is not an issue to them.

NIN643483d ago

Agree and bubble, but unfortunately on this site you are preaching to the choir. . .

bym051d3483d ago

Excellent comment. Fads come and fads go. When you build on quality, you may not climb as quickly, but you don't fall as hard.

The 360 and PS3 have much stronger software libraries, and that's what drives sales ultimately.

Nugan3483d ago

Sorry, but this only makes sense if you totally ignore the context of this announcement.

You have to ignore the recession, the strength of the Yen, and the fact that ultra-hardcore Sony just experienced considerable losses too.

Nintendo isn't anticipating the death of a fad. They're anticipating a particularly nasty financial environment and they are not naive enough to believe that they are immune.

It's worth noting, however, that even with such a massive cut, Nintendo still expects to be PROFITABLE, something that may very well not be true about the gaming divisions of its competitors this year.

BrotherNick3483d ago

At least they're anticipating the loss and not posting it, like some company I know. I'm quite strapped financially myself, I think I may buy like 3-4 wii games this year unless I get a good job.

KrazyFace3483d ago

That it's coming to an end, surely EVERYBODY and their granny must have one in their house by now. It's a simple case of 'demand has been met' but I don't think it means the end for the Wii as a product, after all, petrol companies don't have to sell cars to stay in business. It just means the devs are gonna have to pull their finger out to keep the public (and gamer's) interest.

Roll on Mad World...

Tempist3483d ago

Actually, demand hasn't been met, which is another problem. And since demand hasn't been met, as people have said, they move on and get something else. People wanted Wiis during the hype and awe of it, not when that fad has burnt itself out.

somekindofmike3483d ago

It was always going to peak at some point, and helped by the current financial situation it might be about to happen.

My own personal preference would be for Nintendo to now go the way of Sega and become a software company, then I could play Zelda, Mario Galaxy & Mario Kart without the embarrassment of owning a wii! and they would be proper shinny current gen versions. obviously this will never happen because the console itself has raked in the money for Nintendo!

All I can hope is Nintendo take the money they've made and do something truely innovative with it next gen. I do believe if they get it right they can please both Hardcore & Casual, and who knows, if they made a console powerful enough to please the hardcore gamers, they shouldn't have a problem getting good developers on board considering previous success they've had with the wii!

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