Nintendo Reports Unhealthy Financial Report, Slices Up Profit Outlook
October 24, 2012 3:07 PM
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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
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).
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
(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.
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.
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10/25/2012 5:42:29 AM
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**
"I modded down, down, down, and the flames went higher." -- Sven Olsen
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