Nintendo to post unexpected loss as Wii successor falters

TOKYO (Reuters) - Nintendo Co Ltd, the world's leading gaming company by machines sold, said it will post an operating loss for a second straight year as the sales of its Wii U, successor to the 100-million selling Wii, faltered.

The company caught investors off guard by predicting a loss of $220 million in the year to March 31, reversing a profit forecast for the same amount, putting its new guidance well short of a consensus estimate of 12.1 billion yen ($133.48 million) profit from 19 analysts.

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Name Last Name2089d ago

duh. what were they thinking??

BadboyCivic2089d ago

I thought they were sold out in record numbers over the holidays?

wishingW3L2089d ago

they were but because of low production due to it being new.

AsimLeonheart2089d ago

That is all just propoganda of Nintendo fanboys. THIS is the reality. Wii U isnt selling and Nintendo is suffering losses. Now everyone can finally see how Wii U has been performing in reality.

HebrewHammer2089d ago

I'm with Asim.

I want nothing more than for Nintendo, Sony, and Microsoft to coesxist and succeed in this industry, but I think Nintendo's hardware business is way too far behind. If Nintendo focused eclusively on software and distributed their games on other platforms, they'd make a killing. Could you imagine Zelda for PlayStation, or Mario for Xbox?

Hot damn.

blackbeld2089d ago

Maybe so, but this year the WiiU got its momentum with awesome game releases and its still cheaper the PS4 and 360.

This year is just one month old so no worries.

R_aVe_N2089d ago

They were never sold out in my area the shelves were stuffed full of the Wii U. The shelves are still full and it is not selling well at all (In my area at least) I went to a local game store and they had 12 cases during the holiday's and they just sit there. Was the same at Wal-Mart was the same deal.

+ Show (2) more repliesLast reply 2089d ago
Xof2089d ago (Edited 2089d ago )

Seriously. Unexpected? Give me a break. Every gamer I know was/is hesitant about the Wii U... at best.

Hell, even my friends who love the Wii have been dumbfounded by the whole thing.

Of course, I thought much the same about the 3DS, and look how awesome that turned out.

EDIT: The debacle of the first 6 months notwithstanding, of course.

Thatguy-3102089d ago

It lost what saved it last gen which was the casual market to phones and tablets. It's a gamecube scenario again.

DigitalRaptor2089d ago (Edited 2089d ago )

This is spot on. There's no point in doom and gloom since Nintendo will be just fine, but do you see the same insane rush and hyperactive marketing of the Wii and its motion tech? Exactly.

For all its merits, people are simply not as excited for the Wii U because:

1) Those who bought a Wii due to the mainstream excitement and advertising are burned out on what it has provided, and you know the rumour that the Wii is the #1 console to collect dust? I don't think that's far from the truth. These people see the Wii U as an extension of that and as such aren't as interested, even with an innovative tablet controller.

2) It doesn't provide for the mass market what the Wii did.

user39158002089d ago

No they were never sold out, as a matter of fact they are everywere. 220 million lost till march? Whats next 400 miilion lost until august? Ugh, I wish Big N take the lost now early, stop making wiiu and start from scratch, make a unit capable to comfront PS4 AND 720 not the current gen. It suck cause I was hoping for a miracle, but Big N ate donkey kongs banana with the wii-u.

Zhipp2088d ago

Abandoning the Wii U now would cost Ninty substantially more than it would to stick with the Wii U for the next 5 years. They just need to hold out, and make the console more inviting to those who are still on the fence. They need bundles. They need limited editions. They need ADVERTISEMENTS.

Also, once the next gen starts, they should have the price advantage over Orbis/Durango. That should help, somewhat.

+ Show (1) more replyLast reply 2088d ago
BLow2089d ago

To be fair, isn't this one of Nintendo's first consoles (or one in awhile) to be sold at a loss. At least that's what I thought and I may be wrong so jump down my throat because I'm just asking a simple question. If so, that may explain some of the losses they have encountered.

kma2k2089d ago

Yes you are correct sir selling them at a loss

TongkatAli2089d ago

Nintendo isn't going anywhere, no worries. The 3DS is number one everywhere.

LOL_WUT2089d ago

The only reason why the 3DS is currently number one is because of the price cut it got early on. They practically saved it from being a huge failure now this comes up all I have to say is OUCH! ;)

n4f2089d ago

yeah what ever happen to the competition.

MegaLagann2089d ago

"The only reason why the 3DS is currently number one is because of the price cut it got early on"

Surely it couldn't be selling because it has GAMES!??! Nope, it's only selling because of the price cut, nothing else.

Donnieboi2088d ago (Edited 2088d ago )

What is 3ds worth when compared to Iphones and Android? I know it's a dedicated handheld, but it's sales are being absorbed by phones. So to an extent, Nintendo cant rely on the 3ds alone to support them forever.

Aside from backwards compatibility with Ds games, and some current/upcoming Shin Megami Tensiei And Monster Hunter games, I dont see any other appealing games coming out for 3ds.

DarkHeroZX2088d ago

Uuuh the 3DS just started making profit after the release of the 3DS XL. What's the point of selling a device if you lose over $25 bucks on everyone you sell? Remember the ps3 sony lost over $200 in the beginning and despite the ps3's success lost millions! Sure they can boast about selling far more 3ds' over the vita but atleast Sony isn't being hit as hard despite pathetic sales. Almost every Vita Sony sells is profit and now the ps3 is profit. Nintendo just got back on track with the 3DS XL and now they got themselves into another rut with the Wii U.

DA_SHREDDER2089d ago

Who cares?! This only means one thing. That sooner than later there will be a price cut!

MadMen2089d ago

See previous posts

WiiU will be a failure

in comparison to the Wii

MadMen2089d ago

And that has what to do with the statement?

Nothing, exactttly

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