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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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.
I highly doubt it is game over.
Lets approach peoples opinions and statements on a case by case basis, please. >.<;
Then what the hell do you call the Wii ?
That actually sounds like honesty.
but yet, somehow, they are doomed?
dont forget the Wii has always been the cheapest system in the market, and that third party sales have always been terrible and they have the lowest attach rate. They released their last system last and releasing the new one first... that says that the first one isnt really the run away success its made out to be other wise they would coast on the system a little while like sony did with the Ps2. MS and Sony are any where near releasing new systems.
Everything about the 3ds is pretty much true.
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
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,,,
they are both selling tons of things, but with a strong yen, it's harder to make big profits with international products..
im not doing any google searching before i post this so they may have actually lost money. but i doubt it
XD
http://n4g.com/news/990620/...
http://n4g.com/news/990620/...
http://n4g.com/news/990620/...
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
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.
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.
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....@_@;
BTW, although they aren't highly touted, I found both GR: Shadow Wars and DoA: Dimensions to be above average games.
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.
P.s. Almost 18mil 3ds' sold -vs- the PSVita's 2mil disagrees with you very much on no one wanting Nintendo products :)
Like the vita? And how it's getting outsold by almost every platform under the sun every week?
Let the disagrees commence!
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.
ps3=16 million sold fiscal year
wii= 9 million
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.
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.
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.
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).
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
I wish I was...
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.
BTW, i really like you account in you tube xD
Jesus christ I'm tired of hearing about it too.
Such shoddy gaming journalism with sensationalized headlines.
Nintendo, like Sony and Microsoft, is perfectly fine. Companies lose money. It just so happens that a lot of big companies are losing money at the moment. But they eventually slow down the leak, and start making money again.
It's a natural order of things.
So Captain, bubbles for you!
I need a link that proves the vita is being sold at a profit, as I have heard from other sources the vita is NOT profitable:
http://andriasang.com/comw7...
http://youtu.be/EwrOOQyEdzM
Everyone should actually check it out before hitting the disagree button.
That said I would point out that Nintendo have always put out crappy third party games. The 'Nintendo Seal of Quality' on N64 (and earlier) games was often derided as having the worst quality control process of anything computer related, including Windows!
XperiaRay
I say I'm going to sell x to the tune of x .....in your country. You say great! It helps my economy and creates jobs (or maintains jobs). You give me a tax credit do I can tell my accountants that I'm going to make x. Now they look at gov tax creds as being as good as real money....they record it as profit. Long before ive even shipped my product to your country. (that part is solely redonk....such is life for big corps when selling to other markets).
Now, sales are weaker than expected. No sense incurring true loss by sending stock to a market that won't bear it. So I cut my true losses. Accountants cut taxation creds - which show as a loss.
In reality Sony is losing a third of the 6.2billion it said it was. And that's fact.
MS are losing most of all....due to their shady evil corp style buisness practices, they are being sued and have already lost the to google to the tune of 4.2 billion a yr for as long as MS sells Xbox in the US. MS do have the option to stop selling in the US of they don't wanna pay.
The only reason I see for Nintendo ...that this is significant, is its their first. They'd be fools if they weren't feeling shaken. And it should change their buisness strategy - for the short term of our economic rebuild. (which is lilkely at least a decade of work ahead of us)
Just my observations and opinions.
If you want highlight their blemishes just put them into perspective.
RRod had to put a billion in reserves for fixes,extended the warranty, then made a new system that all but eliminated the issue.
Weak sales in Japan, true but keep in mind Japan has turned in to a very weak market. The games that are big this gen dont sell over there. And its not even that Sony sells a lot over there its just that MS doesnt sell at all over their. Not to mention MS sales the best in the biggset market.
They have lots of question marks. They ddnt really solve any problems last gen, like internet gaming and processing power and modern gaming requirements. they lived off of novelty and didnt really figure out how to transform it in to solid support.
If they were smart they should have started experimenting with different concepts for another year before going to the WiiU. They tucked tail and started running scared when MS and Sony got serious about motion gaming. Now they are fighting with their backs to a cliff. They have t deliver something that is special in order to stay relevant or its goodnight.
Well said.
I remember Miyamoto explaining the Wii strategy as a play safe bet/gamble against the power players - Sony & M$. If it failed then they didn't have to loose big like they did with GameCube.
I know Nintendo is caught between a rock and a hard place yet AGAIN but whatever they come up with Wii U, whether successful or failure, I strongly believe they are going to give it all they got.
Aggressive pricing will be very very crucial whether Wii U is on par with PS360 or a true next gen console.
I do agree though, Nintendo needs to become more aggressive again. They need to really show people that Wii U is a console worth owning; not necessarily with a super strong machine, just a good one to play games on (the 360 was weaker than the PS3 but it was easier to develop on and had more exclusive software; Call of Duty 2 was a huge one).
lol that is the weirdest analogy I've ever heard...but I guess it kinda works here. Sony's narcissism has almost brought the electronic giant down, don't think it can't happen to you, Nintendo. You better get 3DS's in more homes and pray that the Wii U will be a hit (I, personally, could care less about a system that's technically less advanced than an Xbox; a system that came out 6 years ago).
Nintendo is popular in the Handheld department. Its not hard to admit they know exactly what they are doing there.
As far as the console department, the last great system Nintendo had was the N64. Nintendos first party games are the main reason people buy anything from them.
Hopefully the Wii-U (Still think its the dumbest console name) will prove everyone wrong and have a great third party library, equal games (if not better) and a great online service to compete with Sony and Microsoft.
I just don't see myself using the "wii" remote, or classic controller comfortably for hours, even the touch screen on a game that isn't designed by Nintendos first party studios. I can't see myself using that damn touchscreen with BF3 and enjoying it..Just can't.
If they want to really strike the "Elite" "hardcore" "passionate" gamers. They need to have a system with not only great first party but also equally made and playable (online and off) third party games. Also release a more comfortable controller for us gamers who spend hours a day on the damn system.
Its so easy for them to fix this, but at the same time so easy for them to mess it up.
My Wii sits on a shelf covered in a layer of dust. It hasn't been turned on since Skyward Sword.
If Nintendo drops the ball with the Wii-U, I'd personally see them focusing only on handheld market after that. Its where they always do their best anyway.
"we are sick of idiot troll haters"
Did you read what you wrote, you have now just painted a horrible picture for yourself.
"Nintendo will never die, and I love all their systems and games"
Ok so we established you are a super fanboy..HA COOL STORY BRO. Nintendrones FTW!
Now, when you say that there aren't any articles about Sony..Are you outside your mind sir? There are SO MANY! You just seem to be so far in Nintendos butt to not realize what I was actually saying. I'll write it in fanboy for you to understand.
I have loved Nintendo all the way up to the GameCube, in fact that was my favorite system (mainly because of RE series). I was pretty upset with the Wii because Nintendo played too hard on the motion control gimmick. I still bought certain first party games cause I like them so much.
I'd sure hate to say it but with the way internet gaming has picked up I think the Wii-U should follow suit and make their console have a great internet service, and great third party support. To insure us Nintendrones get the best out of their console.
Honestly, if Nintendo had done this with the Wii from the start they wouldn't have to release a system so soon to try and pick up where they are hurting the most.
I love my 3DS it plays handheld games perfectly, and it seems like thats where Nintendo really knows there stuff.
Gee Golly I hope they do better next gen so I can use my Wii-U more than my Wii.
Is that better for you Nintendrones?
Well said.
Still, most of the rabid Nintendo apologists / defenders have used up all of their bubbles now, so it may be possible to discuss the actual topic at hand.
What exactly are you saying by region locking accounts...I am confused. -_____-. Because I sure as hell know you can play imports without worry.
Guess this is a typical Nintendrone.
Can you guys do ONE Thing and that is make sense of a situation.
You really are all blinded by what I and everyone else are saying. IF THE WII U does NOT live up and surpass expectations Nintendo will most likely through in the towel in the console market, and focus only on handhelds.
I have nothing against Nintendo and I play my 3DS enough to justify owning it. I do not think Nintendo should leave the market. I in fact think if Nintendo plays their cards right they could do good next gen. But I also think if they fumble at all it could be there last hoorah in the console market.
Sony does region lock their accounts. All that means is you can't buy Japanese PSN content on your American account. You switch to the Japanese account, on your American PS3.
When it comes to region locking, Sony isn't nearly as bad compared to Nintendo.
But yeah people should be concerned severely about Sony, because if the Vita doesn't succeed, the PS4 might be Sony's last console truth be told. you don't go from being a 200 Billion dollar corporation to a 20 Billion dollar one and think that everything is just a-ok like you fanatics here suggest...
p.s. does anyone read the facts anymore, it has been publicly noted that Nintendo has over 10 billion dollars in the bank and can take a loss like they did last year for the next 30 yrs! So how does this equate to Nintendo throwing in a towel anywhere? Sony doesn't have a cash reserve on hand as such, so what are people actually gaining here by posting articles like these?
one reported loss in the company's history and it's game over? jesus christ people are stupid....
I love Nintendo and I want their games to keep coming out for years to come.
But the article does raise some fair points. Nintendo isn't the biggest company around and can only afford this for so long.
Anyway, Disney is doing well with the Avengers these days.
Nintendo isn't going anywhere anytime soon, just another sensationalized article for hits. It's been said time and again that Nintendo has more money in the bank and invested than both Sony and Microsofts gaming divisions combined. Why people ignore financial facts and write these articles as soon as any bump in the road shows up I'll never know.
if the head of Nintendo has to take a pay cut to make sure a system can get a price cut so it can sell. I'm pretty sure NO other company would do that in terms of gaming. So what they reported their first lost, and I'm sure the wii reaching it's end life cycle had nothing to do with it? The the 3DS wasn't built with profit first, so the CEO took a hit to price cut a brand new system.
Well I know sales will be poor across the board, we are in a recession, times are hard. Gaming can be an expensive hobby or pastime. Not to worried about Nintendo,sony and MS as I'm pretty sure they will figure a way to stay profitable, maybe the most powerful and latest tech won't cut it next time.Maybe Micro transaction might make them filthy rich like the Mofos at Nexon. Which ever the way these companies have people on their payroll that are paid to think crap up, and if they must "copy" a business model to stay ahead you can be sure they will.
Look, we have how many more weeks till E3 2012, and after that the release date for their new system will surely be released, and then the Goliath of marketing will be put into play. the hype meter will rise and maybe we might like what we see. There's a chance, yes i won't put it past some of the member on here to say " I ain't buying no dam wiiwii system no mater WHAT!"
Listen , Diablo 3 i releasing tomorrow and some of us might go and live in a cave for a while, sure we need to come out to forage for food but by them, hopefully E3 is here. Tired of all this waiting.