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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_Kuwabara1985d 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.

jacksonmichael1985d 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.

thorstein1984d 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-1985d 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

krazykombatant1985d ago

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

Solid_Snake371985d ago (Edited 1985d ago )

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

ronin4life1985d 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. >.<;

ChickeyCantor1985d ago

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

Then what the hell do you call the Wii ?

MidnytRain1985d ago

@krazykombatant

That actually sounds like honesty.

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dark-hollow1985d 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?

1985d ago
Denethor_II1985d ago

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

miyamoto1985d ago (Edited 1985d 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

ronin4life1985d 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,,,

extermin8or1985d 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 ;)

kikizoo1984d ago (Edited 1984d 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..

chaostrophies1984d 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

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GribbleGrunger1985d ago

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

Outside_ofthe_Box1985d 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/...

Lucretia1985d 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

megajon1985d 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.

ronin4life1985d 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.

Lucretia1985d 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.

Trenta271985d 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.

ronin4life1985d ago (Edited 1985d 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 [email protected][email protected];

AdvanceWarsSgt1985d 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.

MostJadedGamer1984d 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.

jjdoyle1984d ago

Stupidz title imo = no clicky from mez!

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Shok1985d ago (Edited 1985d 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.

modesign1985d ago

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

Ck1x1985d ago (Edited 1985d 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-hollow1985d 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!

browngamer411985d ago

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

mamotte1985d ago

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

bothebo1985d 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.

modesign1984d ago

ck1x. same thing can be said about ps3 and wii
ps3=16 million sold fiscal year
wii= 9 million

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DragonKnight1985d ago

Sorry to disappoint you Shok, but the loss of 2.8 billion isn't from the PLAYSTATION division, it's from the consumer products and services division. That's a BIG difference. The Playstation division is part of that division and the losses are in a far greater part because of poor tv sales, laptop sales, and camera sales. And no, Sony has not reported being in the red in the Playstation division for 4 years. How is that possible when, for the past 2, they've reported that the Playstation division has been responsible for making them the most money and they no longer lose on every console made?

Every company has had a reduction in hardware sales, but your own link below states that PS software sales are up. The PS division is what is keeping Sony afloat. The thing with Nintendo though is that a loss for them in a gaming division is worse for them than Sony because Sony has other areas they can make income, Nintendo doesn't.

But like I said, EVERYONE has been having problems moving hardware now. The reason is obvious. This gen has been around for a long time and pretty much everyone who wants their console of choice has one.

Not trying to say Nintendo is in trouble like this article suggests, just saying that we could say the same thing about every company right now.

PopRocks3591985d ago

No. Just no. Your misinformation is downright laughable.

Sony recently reported a net loss of nearly 6 billion dollars (not yen, DOLLARS). The 2.8 billion dollar loss was indeed from the Playstation division. Here's a link to prove it.

http://www.gamersdailynews....

Yes, every company is striving to keep themselves out of trouble. Japan's economy has hit a financial snag. But it's pretty undeniable what Shok said; Sony's in a bigger rut than Nintendo and it's because Nintendo's smart with money whereas Sony has been selling consoles at a loss for an entire generation, among other things such as 3D TVs that not very many people want.

DragonKnight1985d ago

PopRocks: In this instance, Shok has the better source than you.

http://www.gamesindustry.bi...

Read it and proceed to weep. The 2.8 billion dollar loss is from the Consumer Products and Services division, NOT THE PLAYSTATION DIVISION. That means PC's, digital cameras, tv's, and their services in total accumulated a total of 2.8 billion in losses. Even your own link says the same thing. It DOESN'T say that the PS brand netted the entire loss, it says the whole division (of which the PS division is part of) netted the loss. PS division has been making Sony money for 2 years now and is the one thing keeping them afloat. It's evident by the fact that PS2 is STILL selling and PS3's decline was marginal from last year. Software sales for the PS3 are up as well. Stop being a hater/fanbot and learn to read.

You won't be gaining anything from MS by trying to gloat. They don't care about you.

Mottsy1985d ago

Damn. a 6.2 billion loss, thats like 2.00 lost per share! Most companies start sweating when they loose 20 cents per share! But the good thing about posting loss is you have i beleive up to 6 years to post loss (in japan), not have to pay taxes, and a brand like sony will easily recover! As for nintendo 1 Year out of what 20 i think they will manage to survive!

Knushwood Butt1985d ago

Good to know you're so worried about Sony, cos you love them so much...

Hicken1985d ago

DragonKnight's got you on this one, Shok.

You're right that Sony as a company is in worse trouble, but your link is wrong about those losses coming from the Playstation division.

The very first line states, "Sony's Consumer Products and Services division suffered an operating loss..." which is more than just the Playstation division. In fact, the article focuses heavily on poor(er) sales, but if they're making a profit on all their system sales- and they are- then a drop of a half million here or a million there isn't going to suddenly become losses.

The Playstation division is not suffering losses, but that is neither here nor there.

Nintendo is not in trouble, though it certainly must be said that they do only have a gaming division, and therefore are in more relative danger (as opposed to the Playstation division being in danger).

MostJadedGamer1984d ago

There not worrying about the wrong company. Sony has a chance to recover with the PS4. While its looking like the WiiU will absolutely doom Nintendo as a console maker. Read my post above.

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DarkSniper1985d ago ShowReplies(4)
LX-General-Kaos1985d ago (Edited 1985d ago )

Nintendo is the godfather of innovation and Elite gaming.

Basically meaning that the Nintendo brand is too educated and well respected to lay in its final resting place.

The Nintendo 3DS entertainment system is destroying its moderate handheld competition, and the Nintendo Wii U entertainment system is months away from being released to the world.

The Nintendo award winning 1st party exclusive content will steal the spotlight of E3 2012, and cement a place in gamers hearts and souls worldwide. Just as they have been doing since the beginning of gaming time. Next generation will be no different. Once again nay sayers will be handed a full high calorie plate full of crow to chew on.

One mediocre financial loss (first ever) will do nothing to bring down the Nintendo Brand.

Just as Shok mentioned above, there are other gaming brands out there that are in far worse trouble than industry leader Nintendo. This flaming article has a target painted on the wrong team as far as financial struggles go. Anyone who has read an article or two knows there is another brand doing far worse than Nintendo financially at the moment.

E3 will arrive, we Elite Nintendo gamers will experience pure Nintendo greatness, Lord Miyamoto will bless us with new content, and we will carry on with our gaming lives. Have a blessed day and happy gaming.

Rated E For Everyone

Tomonobu Itagaki1985d ago

Oh hi there, Reggie Fils-Aime. Long time no see !

Moerdigan1985d ago

He wishes he was Reggie Fils-Aime.

I wish I was...

ThePsychoGamer1985d ago (Edited 1985d ago )

Can't say it the WiiU will bring "blessed gaming" if it's region locked.

redDevil871985d ago

Yes because elite gaming means playing on Nintendos crappy online network, with those "elite" friend codes.

The only way to call Ninty elite is by saying they are the current elite at having shovelware on their system.

StraightedgeSES1985d ago

Its funny cause online gaming is one of the reasons why games sucked so much in this gen.

Nerdmaster1985d ago

Hey, LX-General-Kaos! I missed you! In every Nintendo related news I search for your comments to have a laugh, but these days it's hard to find any. It's good to see that you're still here!

ritsuka6661984d ago (Edited 1984d ago )

Dark sniper= general Kaos.. lol

BTW, i really like you account in you tube xD

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Khordchange1985d ago

If I hear one more F*cking article bout the damn ipad/iphone eating sales of not just games, freaking everything(Movie theaters, Phones, Cameras, Games, Books, Ereaders, MP3's, laptops, pianos, iced T, Beds, Clothes, etc...), I might just punch somebody in the face. Just because it has the feature, doesn't make the original feature is obsolete, especially when the original feature is 10x better.

AdvanceWarsSgt1985d ago

THANK YOU!!!

Jesus christ I'm tired of hearing about it too.