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Bloomberg: Nintendo Forecasts Net Loss on Stagnating Sales of Wii U, Games

Bloomberg writes "Nintendo Co. revised its forecast for the fiscal year to a net loss of 25 billion yen ($240 million), cutting its projections for the Wii U console and saying year-end software sales were “far below” expectations.

The company cut forecasts for Wii U sales to 2.8 million units from 9 million. Nintendo also cut its forecast for sales of its handheld 3DS player to 13.5 million units from 18 million."

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majiebeast1734d ago (Edited 1734d ago )

"The Kyoto, Japan-based company also cut its forecast for sales of its handheld 3DS player to 13.5 million units from 18 million, and for sales of 3DS software to 66 million units."

That just sucks, with such a amazing games lineup this year, to not make its 18M forecast.

Handhelds are getting phased out by mobiles:( Even Nintendo isnt immune to it.

This could mean the end of Iwata.

Zones1734d ago

That's unfortunately correct. And mobile platforms are also the biggest cause of the disappointingly underwhelming Vita sales.

I guess people have to justify their $500 iPads somehow...

ChickeyCantor1734d ago

It's not they have to justify it. It's the fact people are more on their phones than anything else.

SURE gamers will disagree, but then again actual "core" gamers make up a small percentage against the casual crowd.

Zones1734d ago

I was specifically referring to 'iPad', as I was an owner of the highest configuration of iPad 2 from day one, and I quickly jumped to the highest configuration of the 'new' iPad on day one too.

I still own that same iPad, and I have been using it progressively less. And this is mostly the case with both people I know personally and reports from many honest people over the net.

Basically, when you pay a lot of money for a gadget just based on its cool factor, you tend to try to rationalize and show it off, although I used iPad a lot for school materials and it was beneficial in that aspect, the +$800 I paid is quite a lot by the typical standard of technology. I mean just look how people are being extremely nitpicky on the pricings of the gaming systems, yet when it comes to most phones and tablets, we seem to be happy to overpay without much questioning, and that high price naturally make us want to justify our purchases by spending time on things that we may not have even paid attention to otherwise.

As for phone games, I own a high end phone (Xperia Z1) and both Vita & 3DS, and truthfully, the difference is that one is mostly infested with games purely to waste time on in quick bursts, while the other(s) are for actual quality entertainment time, whether on the go, or at home.

But yeah on that point, I agree with you, the so called gamers crowd far outnumber the enthusiasts.

abzdine1734d ago (Edited 1734d ago )

it has great games, i dont understand what people expect really!

EDIT: people love to hate but what do they know really about what Wii U has to offer? would it change anything if COD or BF or whatever third party title comes to Wii U? people will still stick to their PS3s 360s and next gen consoles.
it's mental!

Th4Freak1734d ago (Edited 1734d ago )

@abzdine Most anticipated games of 2014 are 3rd party, Destiny, The Division, The Crew, Dark Souls 2, MGS, Watch Dogs and the list keeps going. None will be ported to Wii U and the reason isn't only its userbase who give a f#ck about 3rd party games but the 6 years old hardware + its archaic online platform.

Now, why would I buy an overpriced console with nothing but a bunch of Mario games when I can buy a real next-gen console with a great online service, 3rd party support and new first party and 3rd party IP's?

Nintendo needs to step on the ground and realize we're not in the 90's anymore, they cant make a console w/o consulting devs and publishers and they also need to stop being cocky.

I love Nintendo but they're out of touch with everybody, I really hope Iwata get his ass fired and Nintendo comes up with a competitive console and new IP's.

abzdine1734d ago

@Th4Freak:

"why would I buy an overpriced console with nothing but a bunch of Mario games when I can buy a real next-gen console with a great online service, 3rd party support and new first party and 3rd party IP's?"

To play Nintendo first party games, and you say you love Nintendo but you don't like the fact of having a bunch of mario games? It's of course your opinion and i respect it but it just doesnt make much sense to me.

Online is archaic 4 sure but to me online isn't important AT ALL and i dont think it will ever be cause i mainly play offline games or local multiplayer with friends and Nintendo has always been delivering.
Oh course, i'd like to have a GameCube type of console from Nintendo with a good exclusive third party support like Twin Snakes, Resident Evil, Baten Kaitos and many others but i like what the Wii U has to offer.
I do not have one yet but it's because i had other priorities but that will change very soon. I am a crazy fan of Zelda and i actually got a Wii for that game.

i see your point though but to me playing on a Nintendo console is a trip back in time.

Th4Freak1734d ago

I said I love Nintendo not Mario which btw i've never liked. I've had only 4 consoles: NES, GBC, GC and recently a PSV (I had a Xbox 360 but I didn't like it so I sold it) and I had the best times of my life with them (GC not so much but I got really addict to SSBM), however i've never enjoyed Nintendo IP's other than SSBM and Pokemon (I dropped it after Silver because it was more of the same).

I respect your opinion but I think you should realize that you're among a minority, not many people are into Nintendo games and even less are willing to pay a premium price to play those games.

Everything including the gaming industry changes but Iwata seems to not understand that. Around October he said that Nintendo isn't into competing, that statement blew my mind, how can the CEO of a company that makes money from competition say such thing? Hiroshi Yamauchi must be turning in his grave.

AsimLeonheart1734d ago

Everybody was telling the Nintendo fans that the Wii U and Nintendo were not doing good but they preferred to live in their dream world where Nintendo was highly profitable, had $10 billion in the bank, 3DS sales were enough for profits and Mario was going to save the Wii U. Especially that starfox guy (or was it YelloFlash?) who was claiming 7 million sales for the Wii U by the end of the fiscal year. Now the facts and figures are here and reality turns out to be very different. Hardware/software sales targets have been reduced significantly, games have flopped or underperformed and forecasted profits have turned in to huge losses. A $25 billion Yen loss; third consecutive annual operating loss and still Nintendo fans like to boast Nintendo’s profits and believe that everything is or will be fine. The gaming landscape has changed and Nintendo needs to change if it wants to survive or at least remain significant. It is not the 80s or 90s any more where platformers and colorful kiddy games were all the rage in the home console market. You have to face the reality and adapt to survive, even if you don’t like it.

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Muffins12231734d ago

Allot of dumb asses on here thought the wiiu was doing good.....
Brw guys those pre oder and anticipation for those wiiu must have games are horrible

lilbroRx1733d ago (Edited 1733d ago )

You do not that thd 3DS was the highest selling platoform by leaps and bounds right?

If that is bad then Sony and Microsoft did substantially worse.

This makes me more fearful for Nintendo competitors than Nintendo themselves.

DarkHeroZX1733d ago (Edited 1733d ago )

What you have to realize is sales mean absolutely nothing if your losing money for each console sold. Nintendo didn't start making money off the 3DS until the 3DS XL model when they brought the cost to produce the system down. Nintendo just started making money off the 3DS good but are now losing money off their next gen machine which offsets those gains. The Wii U was already being sold at a loss at $350 but then they had to slash the price by $50 and they bundled games, its like the PS3 all over again. Since the PS3 Slim line Sony has managed to make money off every PS3 sold. They also make profit off each PS4/Vita sold so there isnt any one platform holding the other back. MS also makes money off both of their consoles so they to gain something. If Sony would just Sell off their nonprofitable division they would have been at least neutral by now.

lilbroRx1733d ago

Nintendo is making profit on the 3DS and have been for over a year.

Its true that the Wii U is selling at a loss, though and even moreso sense the price drop, which makes me wonder why people think dropping the price even lower with help their profits. It will make it worse.

All they have to do is lower the cost of the Wii U's development to make profit on the hardware and release more major software. The latter is inevitable. We know the games are in the making. The former is all up to the manufacturers.

DarkHeroZX1733d ago

Yeah a yeah its been about a year since the 3DS XL came out. But even then a year of profit doesn't mean anything since that profit was used to help regain previous losses that went on a year prior. On top of that the majority of the 3DS install base was during that loss period when Nintendo cut the price of the 3DS. And lol easier said then done, while cutting the cost sounds easy its really not as simple to do with consoles as it is handhelds. Unless you want them to start removing features like Wii playback your gonna be waiting a bit before the price goes down.

Chrono1734d ago

Where are the fans who were saying Nintendo was doing great with WiiU sales?

torchic1734d ago

LOL dude they are still going to say that, these FACTS won't stop them.

MasterCornholio1734d ago (Edited 1734d ago )

Didn't they say wait till Super Mario 3D world comes out?

They can say that all they want but the truth is that Nintendo released one of their biggest franchises last Christmas and while the Wii U sales were boosted it still sold below Nintendos expectations. Proved by this article from Forbes.

Its time to accept that Nintendo made some big mistakes with their console but there's still hope for them.

P.S And once again this proves the need to have more 3rd party games on the Wii U.

Muffins12231734d ago (Edited 1734d ago )

Ive swear i have heard "What-till" so many times for when its going to sell we'll.

LOL_WUT1734d ago

It barely made it through the holidays he'll even in Japan the WiiU is selling below 20k again. Also this is like the fourth time Nintendo revises their sales forecast for the WiiU ;)

Knushwood Butt1734d ago

I wonder how many units of PS4 Sony will ship for the JPN launch.

D2K1734d ago

Probably hiding in the same place that analysts and Nintendo detractors were hiding after the 3DS became the number-one selling console worldwide and fastest-selling console EVER by reaching half of the PS3 and 360 total install base in just 2 years.

"Great" is a relative term in this sense. Considering that the Wii U sales were in the toilet for the majority of 2013 so even an increase of 340% is not enough to dig them out of the hole.

The part in this article where it goes off the track is about the mobile gaming aspect. People will just not except the fact that dedicated gaming portables are not going anywhere. It's funny how they talk about how mobile gaming is "taking over." They've been saying that since the debut of the original DS. Well 153 million consoles later I don't think the DS has suffered any.

They also contradict themselves about saying how mobile gaming is going to phase out handhelds, yet they turn about and claim that it is a deficiency that Nintendo will not avail it's intellectual properties to mobile devices. Let's see. The DS is the number two best-selling console of ALL TIME. The 3DS is the fastest-selling console of ALL-TIME. This all while competing against smart phones, tablets, and rival portables. Even with the Wii U sales tanking, because of the success of the 3DS Nintendo actually turned a profit in the last fiscal quarter. Why in the world would Nintendo STOP making portable consoles? Does anyone else see how stupid that sounds?

While I don't agree, people who are saying Nintendo should scrap the Wii U would have a better point than those morons saying scrapping the 3DS and putting IPs on smart phones and tablets is the way to go.

Make no mistake, Saturo Iwata needs to be publicly fired. I'd do the honors myself if they let me. However people need to get a hold of themselves. The Wii U may not win this generation, but it is here to stay. Period. If people don't like it, too bad. So what Nintendo is posting a loss? What, they aren't allowed to? Sony is staring bankruptcy in the face. No one says anything about that. They have to sell assets left and right just so they can post a fiscal profit. Nintendo is still able to expand their assets because of the massive profit balloon they sit on. They could not make one shred of profit and LOSE 275 million dollars a year for 60+ years and still not go bankrupt because of the 18 billion dollars in CASH Nintendo sits on.

However, like I said, Iwata needs to be fired. He's failed at his job. He's done some good things, but he's done a lot more bad things and Nintendo as a whole should not suffer because of the stubbornness and inabilities of one Saturo Iwata. Those of us whom have been gamers for 30+ years are owed more than this. A major reason WHY Nintendo sits on that profit balloon is because of us, the core, the people whom Iwata turned his back on that caused this mess.

DC7771734d ago

Yeah hate the whole mobile gaming argument. Phone games are and will always be just a quick fix for the five minutes in the waiting room or 15 minutes on a bus. They are little threat to big handheld games like Zelda.

wheresmymonkey1734d ago (Edited 1734d ago )

Yeah Lets Fire Iwata!!! i mean he's only seen the company through the most successful period in its entire history, Yeah screw that guy!!! He came in as CEO just before the wii and DS launched. two of the most successful gaming devices ever made.

He's only opposed to redundancy for the sake of it, Ensureing DLC is of a high quality and reaonsably priced, been very vocal about making sure Nintendo never charge for online and sees the importance of being able to own software but lets kick him out because they fudged the marketing on the WiiU and underestimated HD development.

But yeah screw that guy lets replacie him with someone that'll make sure the company basically makes the same stuff as everyone YEAH!!!!

Now where's that sarcasm font,

Muffins12231734d ago

Im just gonna tell you somethin,i know a good amount of kds that play on their ipodes,ipads,and parents iphone more so than a 3DS...when i was kid it was different
but now...

FarEastOrient1734d ago

@monkey

The job of a CEO is to maintain or raise the company's value. Ever since he took over the was a small blip at the launch of the Wii and decreased from there. I sold my shares a long time ago so I can't vote on this one.

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weekev151734d ago

They need to have a good few surprises up their sleeves and find a way to release games quicker. Mario 3D World is amazing but it caters to core Nintendo fans such as myself. They need to do something to sort out their online play and bring out a game yhat takes advantage of free online.

The sort of golden eye perfect dark type game from the times that shooters were fun, or like a kid icarus game with online cop, or MMO Pokemon. Come on Nintendo make it happen.

D2K1734d ago

Yup on all accounts. I can think of a few more games that can get the core back.

Wave Race
1080 Snowboarding
F-Zero
StarFox
Metroid
Eternal Darkness
Crusin USA
Raven Blade
Conduit
No More Heroes
Red Steel
Excitebike/Truck/Bots
Mario Strikers

And then reach out to so 3rd parties an fund exclusive Wii U games like they did for the N64. Talk to Sega about bringing Virtual Fighter, House Of The Dead, Virtual Cop, Daytona USA, and Shenmue to the Wii U. Talk to Konami about bringing Mystical Ninja to the Wii U and make a remastered port of Mystical Ninja 64 for the 3DS.

Syn Sofia is a second-party studio for Nintendo. Most people don;t recognize that name but they are familiar with the name of AKI/Asmik which is what became Syn Sofia. Since 2K Sports isn't bringing any games to the Wii U, ha ve Syn Sofia make a wrestling game for the WiiU using the same styled-engine than made games like Virtual Pro Wrestling, WCW vs nWo, and WWF No Mercy such legendary games.

Doing stuff like that could turn things around in a hurry. I still think Iwata needs to be fired though. There won't be any change while he's there because he honestly doesn't think anything is wrong.

GamersHeaven1734d ago

Yikes Nintendo is in big trouble they need to fire Iwata asap.

http://www.vh1.com/celebrit...

ScubaSteve11734d ago (Edited 1734d ago )

They have no third party support . Iwata needs to step down , they need to rebranch corporate like sony did.

http://www.nikkei.com/artic...

Iwata was quoted at the press conference today saying that he feels responsibility for the poor business performance at Nintendo, and he is sorry to all shareholders. He says the most important thing is to revigorate Nintendo's business as quickly as possible. He will NOT resign, but stay in office to carry that through.

D2K1734d ago

Nah, they just need to fire Iwata.

wonderfulmonkeyman1734d ago

If Iwata needs to go, then so does everyone who has ever caused losses for Sony and Microsoft.

Oh, wait, I forgot.
This is reality, where anyone that isn't a blatant hater or fantard makes sure to take into account the good that individuals have done for their company alongside their mistakes.

Guess Iwata and the people who caused losses for Sony and Micro aren't going anywhere.

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