Print 27 comment(s) - last by siberus.. on Oct 25 at 6:28 PM

Nintendo hopes the Wii U will help with profits

Nintendo cut its fiscal-year profit outlook by over 50 percent in its latest earnings report -- and some of the other financial numbers aren't looking too swift, either.
For the six months ended September 30, Nintendo reported a net loss of Y27.99 ($350 million USD), which isn't as bad as the Y70.27 billion ($876 million USD) net loss the video game company reported a year ago. However, revenue took a tumble by 6.8 percent to Y200.9 billion ($2.6 billion USD) during the first half of the fiscal year. 
Nintendo doesn't report its earnings on a quarterly basis. 
For the 2013 fiscal year, Nintendo has significantly cut its profit outlook from Y20 billion ($250 million USD) to Y6 billion ($75 million USD). 
Nintendo cited weak 3DS sales for the slash in profit outlook for the fiscal year 2013. The company expected to sell 17.5 million 3DS units and have only sold 5.06 million in the first half, which makes the 17 million look a bit out of reach.
Other Nintendo hardware has declined as well, such as the Wii (1.32 million units sold in the first half of 2012) and the original DS (980,000 unit sales during the same time period). However, software sales seem to be doing well -- it reached 64.45 million sales during the first half. Wii sales may pick up too, since Nintendo just cut the price down to $129.99.
Nintendo CEO Satoru Iwata recognized that cheap gaming on mobile devices like smartphones and tablets has put the company in a difficult place. While devices like the Nintendo 3DS are also mobile, it's much more convenient to carry one device that makes calls, sends texts, accesses the Internet and offers games instead of just one gadget that only offers games. Despite this challenge, Iwata said that Nintendo is sticking with its traditional gaming machines and titles instead of shifting to other methods.
"Certainly, a new competitive environment has been born," said Iwata. "But we have no plans to use our valuable resources for smart devices." 
A lot of Nintendo's gaming future depends on the launch of the Wii U right now, which is the successor to the original Wii console. The Wii U, which is only weeks from release, offers a new gaming experience that Nintendo hopes will draw customers in a different way from smart devices.
The Wii U features a 6.2-inch GamePad controller, 1080p high-definition graphics and 2GB of memory. Nintendo hopes to 5.5 million Wii Us and 24 million Wii U software titles by the end of March 2013. 
The Wii U will be released on November 18 in the U.S., and customers can choose the basic model for $299.99 USD or the premium model for $349.99 USD. 

Source: Nintendo [PDF]

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

By chµck on 10/24/2012 3:16:47 PM , Rating: 2
Does anyone here plan on getting one? I don't see much hype over it. It seems like a late product.

RE: Demand
By russki on 10/24/2012 3:26:47 PM , Rating: 2
The last nintendo console i bought was the n64. I dont understand the need for a wii type console as it took a step backwards in graphics performance. now xbox and ps3 have the same technology so why would anyone buy a nintendo, that's even more expensive than those systems???

RE: Demand
By augiem on 10/24/2012 3:34:37 PM , Rating: 2
Not everyone out there buys on technology (as the Wii's success should tell you). The only reason I might buy one is because its the only way you can play Nintendo's titles. For me, without those, I wouldn't buy one.

RE: Demand
By SenilePlatypus on 10/24/2012 8:14:50 PM , Rating: 2
There's more than one way to get your first party Nintendo fix (with better graphics & controllers [XBox])

RE: Demand
By othercents on 10/24/2012 3:34:42 PM , Rating: 2
That was definitely the argument that people had when the Wii was introduced, but it was a much better selling console especially since it introduced gaming to people who wouldn't ever want to pickup a controller.

However with the Kinect and Playstation Move I think that idea is gone. The only thing that has kept Nintendo selling consoles was the price point. Wii U doesn't meet that price point and the "new" features are very similar to the current portable gaming systems. While the Wii originally made Nintendo relevant again I don't see the same for the Wii U.

RE: Demand
By augiem on 10/24/2012 3:30:17 PM , Rating: 2
I will get one eventually because I want to catch up on a few first-party titles from the Wii, but I'm not excited at all about the new screen controllers or any of the titles I've seen announced. Still, I suppose its a good thing that there are a number of "hardcore" games coming out for it (Assassin's Creed 3, Call of Duty: Black Ops 2, Batman Arkham, Mass Effect 3, Ninja Gaiden 3, Darksiders 2.) That's quite a contrast from the Wii.

RE: Demand
By Brandon Hill on 10/24/2012 3:33:55 PM , Rating: 2
I just put my Wii, Wii Fit, 4 controllers, and games up on eBay. We haven't used the Wii Fit since we got married three years ago, and haven't touched the Wii itself in about 10 months (and even then it was only for Netflix).

I don't see myself buying a Wii U.

RE: Demand
By RufusM on 10/24/2012 3:34:49 PM , Rating: 2
I think Nintendo will be fine. They have always been great at creating new IP even if some of them tank: Mario, Donkey Kong, Zelda, Pokemon, etc. Their strength has always been the software side and the hardware was just there to help sell the software, although the Wii had a ton of accessories they probably cashed in big on.

Nintendo created a dynasty of kids games. All they need is to release some rehashes of old games on the new platforms for the new generations. When something new like Mario or Pokemon comes along again they'll really cash in.

RE: Demand
By Scratches16 on 10/24/2012 5:59:40 PM , Rating: 3
I think Nintendo will be fine. They have always been great at creating new IP even if some of them tank: Mario, Donkey Kong, Zelda, Pokemon, etc. Their strength has always been the software side and the hardware was just there to help sell the software

Weren't people saying the same thing about Sega before they threw in the towel too?

Don't get me wrong, I want to see Nintendo continue to flourish, but I can't help but draw (feel?) correlations between what happened to Sega and what's happening to Nintendo... :/

RE: Demand
By someguy123 on 10/24/2012 10:05:26 PM , Rating: 2
nintendo already bottomed out with the gamecube. nobody seems to remember that they lost practically all share to sony during those days. their ceo was actually fearing for his job back then because of how marginalized they had become.

I think a lot of people see nintendo as going in a different direction with the wii, but you look back at the nes/snes days and they basically did the same thing trying to cash in with super cool radical accessories and advertisements. Their 1st party games were rare, and the only difference was that they had great 3rd parties bringing in content.

If they can get 3rd parties back on the wagon then they'll be fine. If not they're just going to shrink back to their old size.

RE: Demand
By augiem on 10/25/2012 2:07:15 AM , Rating: 2
Nintendo survived the N64/Gamecube era on GameBoy Advance and Pokemon. Their portable dept is having trouble now with all the smartphone games. I'm not sure if Nintendo has another thing like that up their sleeves. I hope the Wii U does better than I imagine it will...

RE: Demand
By Mitch101 on 10/24/2012 6:01:13 PM , Rating: 2
Nintendo is like Disney of the game consoles.

The Wii packed the idea of fun even if many games didn't live up to the hype but people were excited about the Wii. Firs time I ever heard of parents who were excited to get their kids a game console even the anti games people. This time around I don't know of anyone excited for one.

I dont think Pokemon, Zelda, and Pikmin are going to be enough to save this round. This could turn Nintendo into Sega I hope they banked a lot of that initial Wii money away. I hope im wrong and they surprise me.

Even the DS series seems like its way overdue for a redesign.

RE: Demand
By TakinYourPoints on 10/25/2012 3:52:13 AM , Rating: 2
The WiiU was the only interesting thing I played at E3 this year and the year before. I'm mainly a PC gamer, so the 360 and PS3 libraries hold little interest for me since I can play most of their games on my PC at much higher settings (and also on my TV).

The WiiU has things that no platform I own does, and the games were actually great. Ubisoft's games (Rayman Legends and ZombiU) make excellent use of the WiiU hardware, very much unlike the forced gimmicks of third party Wii games from before. The competitive multiplayer mode of ZombiU was super cool. On the Nintendo side, Pikmin 3 alone makes this an instabuy for me.

Yeah, I already have mine preordered. :)

RE: Demand
By siberus on 10/25/2012 5:42:29 AM , Rating: 2
Im still debating it at the moment. There was a few rpg's that came out on the wii i wanted to try but buying a wii this late in its life cycle ruled them out for me. So at the very least i get to play the last story and xenoblade. I can see the controllers screen being great for sports games. Like madden for instance being able to pick your plays or switch to an audible without the opponent knowing what you have planned. But if game companies utilize it wrong it could end up as a major distraction. However given as Nintendo already had experience working with touch interfaces I'm going to give them the benefit of the doubt. In a way the wii u is kind of like a giant DS so we probably only have to look at the ds to see whats possible.

I have wanted the 3ds for a while now as i loved the original ds it definitely got way more game time then my ps3. (lets face it this generation of consoles has had an extremely low amount of rpg's ) Originally i was just waiting for the XL version to be released now i think I'm just waiting for a price drop.
**rant starting** I'll probably lose my interest in a dedicated portable console when the major portable publishers start releasing more hard core games on smart phones. So far i know I've seen capcom re-release some of their ds games for smart phones(ff iii and i think ghost trick) more or less i want games like trauma under the knife and not cut the rope
;s Kinda makes me wonder why more companies haven't re-released their ds games quite a few didn't even require the use of the dpad as they were 100pct touch driven. Is it a cost thing? I think people would be willing to pay more if the quality was legitimately better. **end rant**

"There's no chance that the iPhone is going to get any significant market share. No chance." -- Microsoft CEO Steve Ballmer

Latest Headlines
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Apple Watch 2 – Coming September 7th
September 3, 2016, 6:30 AM
Apple says “See you on the 7th.”
September 1, 2016, 6:30 AM

Most Popular Articles5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
No More Turtlenecks - Try Snakables
September 19, 2016, 7:44 AM
ADHD Diagnosis and Treatment in Children: Problem or Paranoia?
September 19, 2016, 5:30 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
Automaker Porsche may expand range of Panamera Coupe design.
September 18, 2016, 11:00 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki