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Is it game over for Nintendo?

Nintendo posted the first loss in the company’s history at the end of the last financial year, which is notable for a couple of reasons. For starters, the fact that in a fickle industry like video games they’ve run at a profit for 30 years without a hiccup is pretty impressive. Second, the fact that even a dependable giant like Nintendo can be brought low – to the tune of 43.2 billion yen – suggests that something big is up.
There have been plenty of theories about why this happened. The most prosaic is simply that the strength of the yen, especially versus the US dollar, has stripped the guts from the company's overseas profits. It’s certainly been a contributing factor, one that’s weakened Japanese manufacturers in general, but not to the same degree as Nintendo.

The shelves in your local game store have the answer.

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brisbanetimes.com.au
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Mr_Kuwabara1923d ago

Seriously? Just one year an Nintendo is already in trouble... Please..

Nintendo is fine and will continue to do well. The Wii is just in its final legs at this point. Not that many frst party support, and third party is just scare. The latest Zelda game has given the console much neede attention, but even so that and the latest Dragon Quest will mark the beginning of a transition between the Wii ad the next console.

Ugh, hard to express myself when high.

jacksonmichael1923d ago

I totally agree, although I would have to throw Xenoblade and Last Story on that transition list. Also, high five for that last bit. Lol.

thorstein1923d ago

I would also add Last Story... but the 3DS is really the coup de grace here. It is a great system that is doing well. Nintendo is over 100 years old and they have a solid business plan.

I highly doubt it is game over.

Akuma-1923d ago

It's not game over for Nintendo at all. I disagree with a lot of Nintendos choices but they don't take a lot of risks and they have their loyal fan-base

krazykombatant1923d ago

make up your mind, one thread you hate on nintendo the next one you say they'll be fine.

Solid_Snake371923d ago (Edited 1923d ago )

Some hate Nintendo, but deep deep, without Nintendo gaming wouldn't probably even exist if they didn't save it late 80's

ronin4life1923d ago

Just because someone *may* hate Nintendo and spew crap about them in other threads doesn't give you guys the right to troll them everywhere they go...

Lets approach peoples opinions and statements on a case by case basis, please. >.<;

ChickeyCantor1923d ago

"but they don't take a lot of risks"

Then what the hell do you call the Wii ?

MidnytRain1923d ago

@krazykombatant

That actually sounds like honesty.

+ Show (2) more repliesLast reply 1923d ago
dark-hollow1923d ago

so, best selling console this gen, best selling handheld of all time reaching about 150 million units, and lately the smashing success of the 3ds which outsold even the original ds on the same time-frame, with the highest selling exclusives and the two top most successful gaming franchises of all time, mario and pokemon games keep smashing new records with each new game,

but yet, somehow, they are doomed?

1923d ago
Denethor_II1923d ago

The smashing success of the 3DS is what's causing this financial loss lol.

miyamoto1923d ago (Edited 1923d ago )

I always asked many Nintendo fans where did all that Wii & DS revenue ended up at Nintendo & no one can give me a straight answer.

Many dismissed the $250 price as arrogance in Nintendo's part but the recent turn out of events shed slight to why they did that. Which was the exact opposite of their pricing strategy with the Wii & DS.

Since 2007 Nintendo is really hurting. From $26 M losses to $926 M the next year that is not good.

They priced the 3DS in hopes of recuperating from the billions of losses they had since 2007. 80% decrease in stock value and $1.9 B loss in income is a lot of money.

Unfortunately, in terms of pricing & software the 3DS strategy backfired on them & made matters worse.

Analysts were right the Wii U should have launched in 2011 at $300 on par with the PS360.
Now it may be too late and too early for a true next gen Wii U.

@edonus
well said

ronin4life1923d ago

@axel
They have lost money only once in the past 30 years. There were no losses in 2007...
They can take losses like this previous one for decades before being any were near financial ruin, as they have billions of dollars in the bank.

The wii was profitable from day one, while the competition LOST money for years every time they sold a console, so cheaper or not they did make real profit on each one sold. Furthermore, they sold the most consoles this gen and broke several records, meaning they made an accumulative made amount of bank. It is because they have been such a GREAY success that, unlike their competitors, they can actually afford to advance to the next gen. Thinking otherwise is like thinking the guy who just past the finish line in a race is losing against the guy in last place: it doesn't make sense.

The 3ds was over forecast and at its 250 dollar price, and sold fewer consoles than expected. Investors got jumpy because of this and the unnecessarily abusive media reaction and being investors started to panic.

Geeze,,,

extermin8or1923d ago

3DS IS SELLING AT A LOSS (I don't think they are doomed btw far from it) BUT PEOPLE QUOTING SALES FOR THE £DS WHICH IS MAKING A LOSS!!!! is pissing me off; i'd rather something sold nothing till it was in profit rather than be a bestseller whilst at a loss :S and it's not like nintendo has the software sales to compensate like sony and MS can try to when they use that business Strategy ;)

kikizoo1923d ago (Edited 1923d ago )

Like for sony : yen is too high for japanese company, simple.(20% more than 2010-2011)

they are both selling tons of things, but with a strong yen, it's harder to make big profits with international products..

chaostrophies1923d ago

we've also gotta remember that "losses" doesn't mean they actually "lost" money. more like they didn't make AS MUCH.

im not doing any google searching before i post this so they may have actually lost money. but i doubt it
XD

+ Show (4) more repliesLast reply 1923d ago
GribbleGrunger1923d ago

for goodness sake, can we for once have some originality from these so called journalists/bloggers?

Outside_ofthe_Box1923d ago

This article reminds me of a ooooh not so tooooo bad article where people where accused of having an emotional attachment to a billion dollar corporation just because people where "defending" it lol?

http://n4g.com/news/990620/...

http://n4g.com/news/990620/...

http://n4g.com/news/990620/...

Lucretia1923d ago

its just game over for the wii, thats why they are ditching it and goin with the wii-u.

also the 3ds had no games for a year so that hurt their profits.

still its only their first year and their fad runner the wii is at the end of its life

megajon1923d ago

Your pretty much right on the money, no pun intended. Most companies don't make money on the first year of a new console such as the 3ds. It's also the end of the Wii's life span and they're just not selling like they used to.

With the Wii-U on the horizon and the 3DS picking up steam I think this past years losses will be a small spike in the big picture.

ronin4life1923d ago

I wouldn't call the wii a fad. A fad burns out in a very short time, not 5 years, and then stops selling completely. The wii is still selling very respectfully considering its position and market penetration.

Lucretia1923d ago

Ronin a fad is anything that comes out of no where, is insanely popular then dies out quick and is forgotten by the mass culture.

in terms of a console the wii was a fad, 5 years is a very short life. had some good games but not nearly enough. with the casual market no longer supporting it its dying off. nintendo was smart and predicted this and it is why the wii-u was made to launch this year. Nintendo knows what they are doing.

Trenta271923d ago

They aren't doing well. Nintendo has been in trouble for a few years now. The Wii was a hit for awhile, but now it's practically dead. Games aren't even made for it anymore. The 3DS has sold a decent amount, but where are the games? They need to release quicker. I have yet to find a reason to validate my 3DS purchase.

ronin4life1923d ago (Edited 1923d ago )

They have been doing everything you said they should be: in Japan.
They have been mum the last few months as they are prepping it all for e3.
And while I'm sure it will make for an exciting show, I think they may be going a little overboard on the withholding of announcements and releases....@_@;

AdvanceWarsSgt1923d ago

I'll admit I regret buying it Day 1, and only because for like 5 months afterward there wasn't any worthwhile releases. But at this point I definitely can not imagine commuting without my 3DS.

BTW, although they aren't highly touted, I found both GR: Shadow Wars and DoA: Dimensions to be above average games.

MostJadedGamer1923d ago

Nintendo is in SERIOUS trouble. Most people's Wii's have been in there closets collecting dust for years. WiiU looks like more of the same which means most Wii owners will NOT be buying WiiU. Which means Nintendo's reputation as a console maker will be totally destroyed which means WiiU will be Nintendo's last console, and then they will be forced to go 3rd party.

jjdoyle1923d ago

Stupidz title imo = no clicky from mez!

+ Show (5) more repliesLast reply 1923d ago
Shok1923d ago (Edited 1923d ago )

1 year of losses and all the sudden they're doomed?

Sony just posted a 6.2 billion lost, and then just this month it was reported that they lost 2.8 billion from the PLAYSTATION division. They also cut 10,000 employees, closed a couple of studios, and reported that they haven't made a profit within the last FOUR years.

But you're writing about Nintendo over a 500 MILLION (not billion) loss? People are worried about the wrong company.

Not that I want Sony to go under, I love Sony and their products. Just saying, there's a company out there that's taking it 50x worse than Nintendo is right now so we should be worried about THEM.

modesign1923d ago

sony's problem is restructuring and the tsunami, nintendos problem is no one wants there products anymore. nintendos problem is far worse.

Ck1x1923d ago (Edited 1923d ago )

The most delusional statement ever! Shok provided a link below for you to click on and read, it has words that state the Playstation division contributed to the major loses as well... And Nintendo is in Japan also, why wouldn't the tsunami effect them as well?
P.s. Almost 18mil 3ds' sold -vs- the PSVita's 2mil disagrees with you very much on no one wanting Nintendo products :)

dark-hollow1923d ago

"nintendos problem is no one wants there products anymore"

Like the vita? And how it's getting outsold by almost every platform under the sun every week?

Let the disagrees commence!

browngamer411923d ago

You couldn't be more wrong..I had to laugh at how obvious this trolling was-good job idiot.

mamotte1923d ago

Sony's problem is the Tsunami? Where is Nintendo? Alaska?

bothebo1923d ago

@ dark-hollow

Lol like the PS3 and how it's the best selling console and how Sony will announce 20 new games which will boost Vita sales? Furthermore, the Wii was dead after about a year, no developers. I won't even recognize Gameboy because that is a joke. The Wii U will fail which is beyond obvious since then have no one to appeal to. "I can't wait to play Zelda in HD" AHAHA what a joke. Once you've done that then what? Oh right, the nothingness that is Nintendo's games. People say Nintendo has the best first party titles. All I need to say is one thing... Naughty Dog.