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Nintendo's Wii success may begin to wane

Nintendo said today that its fiscal 2008 profits were the strongest it had ever recorded, but admitted it would struggle to repeat the performance in the current year as sales of its two main games consoles peak and foreign exchange turmoil hits the bottom line.

The gloomy forecasts triggered an hour of selling on the Osaka Exchange where Nintendo's stock is listed – completing a poor run that has now seen the shares shed about half their value over the past year. Brokers at Nomura said that what was once the Japanese market's most attractive stock had now lost its allure.

Nintendo reported operating profits of $5.5 billion for the 12 months to March 31. However, full-year income was well below consensus forecasts and the company said that earnings could suffer a 12 per cent decline in the current year – a worse contraction than brokers had expected and a sign that Japan's most profitable company has not escaped the effects of the worldwide consumer spending slump.

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business.timesonline.co.uk
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Anon19743123d ago

This article was focusing on the fallout from Nintendo's financial release, recent stock struggles and forward looking statements regarding their long term profitability as a company. I wasn't just posting another link to their earnings. This is a well done piece that gamers with an interest in the business will probably find informative.

Cheers!

Shnazzyone3122d ago

they have to step up and try to win back the hardcore gamer. The gamer who buys one or more games a month. As it stands it seems they are hoping 3rd party devs will provide everything they need. However that has not been the case except for very recent memory. Nintendo needs to set an example. They need to make sure developers start supporting wii speak and motion +. They need to improve their online connectivity and most of all they need to start doing a bit of quality assurance and try to quelch the massive overflow of minigame titles and god aweful cashins. Perhaps we'll see it in E3... perhaps nintendo already knows what they need to do. Then again nintendo has made mistakes in the past and we can only hope they will get it right this time.

Anon19743122d ago

3rd party developer motion controls seem pretty "tacked on" from what I played. There aren't many who seem to be using the Wii to it's potential and for the Wii to have lasting appeal that will have to change.

SpoonyRedMage3122d ago

I don't really blame Nintendo(altohugh they should implement all those new features) because they've always been accused of hogging the glory and they're actually trying to give 3rd partys room now.

And if they impose restriction like they did with the NES they might lose that support becuase whilst the seal of quality was liked by gamers it was notoriously unpopular with Devs/Publishers and I think Nintendo were even taken to court about the restrictions.

mastiffchild3122d ago

Yeah, woo the hardcore back but also try to educate the newer interested casuals they've brought into the fold, no?

If they can push the better third party games as well as they do their own and hopefully add demos(which is the glaring omission from the Wii arsenal and way bigger, imo, than the lack of HDD or HD)for the games then they'll find it easier to do.

Cancelling Fatal Frame 4 in the west isn't an encouraging start though so who kniows what their plans are.

SpoonyRedMage3122d ago

I was under the impression that Tecmo didn't want it published in the west either? is that wrong?

I think you're right though, Nintendo need sto advertise other peoples games or at least associate the games more with the system.

Seferoth753122d ago

They have the highest software sales of any console. The million sellers list just keeps growing also. The thing is, the entire world is slowing down its spending so Nintendo is acting accordingly. Unemployment is at its highest its been in decades in some areas. If you're smart you don't go forecasting huge sales in the middle of all that.

Sadly the person posting it just doesnt understand what is actually being said by Nintendo.
"The company is known for issuing hyper-conservative forecasts, only to triumphantly exceed them later in the year.".

"Bulls on the stock – including analysts at CLSA, believe that Nintendo’s main difficulties are not dwindling popularity of either the Wii or DS consoles, but foreign exchange fluctuations. "

Yeah it is all doom and gloom for Nintendo.

Anon19743122d ago (Edited 3122d ago )

"Sadly the person posting it just doesnt understand what is actually being said by Nintendo."

Here's a thought. Try making sense once in awhile.
The article is right there with analysis and comments by Nintendo, and Nintendo is warning don't expect to see them repeat the same performance.

Without me actually commenting on the article itself, how on earth do you make the grand flying assumption that I don't understand what's being said by Nintendo? I haven't commented at all. I know currency risk is a major concern for Japanese companies that export product west.

Your commenting that I don't understand what's being discussed is like seeing a man on the street reading a newspaper and saying "Huh. He doesn't get it." As usual, you haven't got a clue.

As I mentioned above, I posted this article for those that are interested in the business side of the gaming industry, not immature trolls who exist only to cheer their console of choice. Let the grown ups talk.

N4g_null3120d ago

darkride66, Seferoth75 is right the article is about grown and mature news and it's also wrong and right in some parts. Japan is getting crushed by this recession. Yes the PS3 sell about 2,000 more a week but these numbers are still low for japan as a whole. Some thing is happening and unfortunately when can't have an educated guess because we are not there.

Nintendo has always been bullish on their stocks. I think they do this to get rid of the joy riders. What ever happens they will continue to be nintendo, which means they will still have there same style of hardcore game that they've always had and also new stuff for every one.

Yet this is news but it's fine, standard grown people stuff which can not be fixed by nintendo's 1s party catering to the hardcore. This is the job of the 3rd parties and always has been.We all know this and hell even SONY's and MS's 1st can not carry a system to the win on their own.

+ Show (4) more repliesLast reply 3120d ago
gijose3122d ago

they're not done yet, just wait for a price drop... the juggernaut will continue

bigjclassic3122d ago

The Wii may have slipped lately in Japan, but that is because of the lack of any 3rd party games currently in japan. PS3 has had major games drop ever since Feb and Nintendo dose not have an answer yet.

The upcoming Wiimotion plus device, Conduit, Punch-Out, WiiSports Resort, Virtua Tennis, Klonoa and others will give the Wii sales a needed boost. Punch-Out and WiiSports 2 will be HUGE though.

PS3 needed this time to boost its gaming image in Japan, and it is doing that. Look for a significant sales increase from Nintendo though out 09, as AAA titles and casual gems hit the market around E3.

*cant wait for Punch-Out*

Anon19743122d ago

It's not just some editor commenting on this. What sparked this whole conversation was Nintendo themselves saying they expect sales growth to pretty much stop.

mint royale3122d ago (Edited 3122d ago )

sales GROWTH. They still project to sell 26 million wii's over the year, easily more than Sony and MS combined so I do not see this as a bad thing.

Anon19743122d ago (Edited 3122d ago )

That's what I said. Sales growth.
Not sure what Sony or Microsoft have to do with that. Of course Nintendo is going to outsell both of them. There's no sign of that reversing itself anytime soon.