Print 24 comment(s) - last by UrQuan3.. on Feb 4 at 10:53 AM

Wii U sales goals were reduced by 27 percent

While Nintendo managed to be profitable again in the first nine months of the fiscal year, it wasn't able to hit sales targets with its latest console, the Wii U.

For the first nine months of the fiscal year, Nintendo reported a net profit of 14.54 billion yen ($160 million USD) compared to a loss of 48.35 billion yen in the year-ago period. Revenue dropped 2.4 percent to 543.03 billion yen for the April to December 2012 period.

Profit was driven upward mainly due to lower production costs for its Nintendo 3DS handheld and a weaker yen.

For the three month quarter ending in December, Nintendo had sold 3.06 million Wii U consoles. It had previously forecasted sales of 5.5 million by March 2013, but has cut those predictions down to 4 million. It also cut Wii U software expectations by one-third to 16 million units.

Earlier this month, Nintendo President Satoru Iwata said that the Wii U sales are "not bad," but also mentioned that it isn't flying off of store shelves as quickly as the original Wii (mainly due to problems like the popularity of mobile devices for gaming and the fact that this is the first time Nintendo has released two versions of a console at once).

The Wii U launched November 18, 2012. The Basic Set ($299.99) features 8 GB HDD, a Wii U Pad controller and it in comes in white. The Deluxe model ($349.99), on the other hand, offers 32 GB HDD, a Wii U Pad controller, power cradles for the Wii U Pad, an HDMI cable and it comes in black.

Nintendo also reduced sales expectations for its 3DS, from 17.5 million to 15 million for the fiscal year. Nintendo originally sought 18.5 million earlier in the year.

Looking forward, Nintendo cut its sales forecast by 17 percent to 670 billion yen ($7.4 billion USD) for the fiscal year to March 2013. It predicts an operating loss of 20 billion yen from an earlier projection of 20 billion yen profit.

Source: Nintendo

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Beginning of the end?
By edge929 on 1/30/2013 3:54:32 PM , Rating: 4
As a long-time console and PC gamer I can see the market for both shrinking rapidly with the rise of mobile devices and cheap games for them. While neither will disappear completely, the days of selling 100 million consoles is over. The business model of $400 consoles and $60 games is coming to an end. Exclusive titles for consoles just aren't cutting it anymore when there's so many other good games on all platforms. I have a back-log of $5 dollar Steam games even while playing for 2-3 hours every day.

RE: Beginning of the end?
By MrBlastman on 1/30/2013 4:06:18 PM , Rating: 4
As a fan of PC gaming I see little point in mobile device gaming with respects to smartphones etc. At best a PSP suffices due to tangibility but beyond that, I see it as feeble and unsatisfying.

I'll stick with PCs. :)

As for consoles--I've never seen a point for the modern ones. I can do everything better on my PC so why bother with another expensive box?

Oh, and that Steam backlog... it keeps growing. :P

RE: Beginning of the end?
By Nortel on 1/30/2013 4:43:23 PM , Rating: 1
Console gamer's don't care about PC's; it's a completely different user base. Console gamer's want a simple gaming experience:
-buy $300 console
-buy $60 game
-pop in disk
-sit in couch and play with autoaim

RE: Beginning of the end?
By maugrimtr on 1/31/2013 11:27:55 AM , Rating: 2
Unfortunately accurate - many console users actually despise PCs and their sometimes overly complicated games. And we wonder why dumb annually reskinned games like COD do so well...

RE: Beginning of the end?
By wallijonn on 1/31/2013 10:45:23 AM , Rating: 2
As for consoles--I've never seen a point for the modern ones. I can do everything better on my PC so why bother with another expensive box?

Perhaps you cannot, but others can. I was a PC gamer until Halo 2 came out and it needed DX10, which meant a new PC (AGP was out, PCI-E was in) since it meant a new OS (Vista). Vista didn't work out too well, did it?

Why bother with an expensive PC which has to be constantly upgraded? Is the average still a video card a year? Top of the line vidcards cost more than consoles, no? A PC can never have too much memory, so if you only have 2G now you can upgrade to 8G this year and 16G next year.

The plain fact is that a top notch PC will likely cost ~$2000 (PC, monitor, wireless keyboard and mouse, OS). For that money one can buy a 60" TV and a console, or two.

If you have your PC connected to your 60" HDTV is it as quiet as a console? If you do, you know you paid dearly to make it quiet.

RE: Beginning of the end?
By MrBlastman on 1/31/2013 1:55:01 PM , Rating: 3
My last upgrades lasted me five years.

I have been building my own PC for decades now so it isn't a big deal to swap out hardware when I need something.

You see, with consoles being how they are right now, they are slowing down the need to upgrade your PC. There still are games that come out every once in a while for PC only that are cpu/gpu hogs but usually an upgrade will net you far more into the future now than ever before in the past.

RE: Beginning of the end?
By Reclaimer77 on 1/31/2013 5:25:23 PM , Rating: 3
The plain fact is that a top notch PC will likely cost ~$2000

Depends what your "gaming" requirements are. As a generalized statement, I have to say this is wrong. Just to make a point, I threw this together. And just to keep myself honest and not go all budget on you to make my point, I used pretty kick ass parts. Everything on this list has a 5 Egg rating I believe. And are some of the best components on the market today.

To be honest the motherboard isn't the best if you plan on overclocking the piss out of the CPU. But for "gaming"? It's gravy.

Left out the video card because honestly there are so many goddamn good video cards for gaming out there, meah, whatever floats your boat. Just add around $300 to this for a ballpark.

Now as far as the RAM, behold the secret weapon...

Don't let the timings, speed and price fool you. You can beat the crap out of this RAM and it performs like a champ. It punches above it's weight compared to RAM three times it's cost. I know from personal experience.

So depending on what kind of gaming you do, this kit could even be WAY overkill. And constantly upgraded? Nah not really. You should be able to get by just on an overclock if things start to feel slow. Or pop in a new video card after 4 or so years.

p.s. for da hatas :P Understand I only spent a few minutes on this, just giving him an example. NOT looking for an endless fanboi debate on components.

RE: Beginning of the end?
By Flunk on 1/30/2013 4:08:17 PM , Rating: 2
Hopefully Nintendo will realize this before they go broke. Sega did a while ago and now I can enjoy their games on any platform I like.

RE: Beginning of the end?
By augiem on 1/30/2013 7:32:34 PM , Rating: 2
Except Sega isn't worth anywhere near what Nintendo is. Sega could have survived as a console maker, they just chose to shrink and focus on software. Nintendo has far too much to lose to follow Sega's example. I've been saying it for years... where's the Nintendo phone?

RE: Beginning of the end?
By Chadder007 on 1/31/2013 8:34:49 AM , Rating: 3
Wii Phone, bro.

RE: Beginning of the end?
By Crazyeyeskillah on 1/30/2013 4:29:03 PM , Rating: 2
I honestly couldn't DISagree with the op any more. Gaming is still growing and evolving and while digital media may wane in the next 5-10 years, we are always going to need a console base to crunch those polygons.

Nintendo is the issue here, not consoles, as they have created something that many people feel has no actual benefit over their current wii, which almost every household in the demographic owns, (I have 2 at my house). The point of the original console was never the graphics so what's the point in upgrading them at all? My son wanted a tablet for XMAS so I bought him one, not a WII U. Also, the launch titles were possible the worst I've ever seen for any system and that includes the anemic launch of N64. I have some disposable income to play with but having played it at bestbuy for a little while i just didn't see anything interesting to warrant the purchase. . .yet. Watch for some AAA game releases to drive up sales in the next few years.

If you think the next XBOX is going to have any trouble selling consoles you are insane. There is an entire generation of gamers that grew up on XBOX/XBOX360 the same way we grew up on nintendo/sega.

I am honestly excited to see what sony and microsoft will be debuting this year and look foward to something new to bring the technology level along as is so sorely needed at this poing by consoles.

RE: Beginning of the end?
By Silver2k7 on 1/30/2013 5:44:28 PM , Rating: 2
I didn't really care much for the graphics of the original Wii... the updated graphis is what made me even consider getting the new one. Nintendo has a nostalgic place in my heart.. with the old 8-bit/16-bit. But the sucky graphic of the last one compared to other things avalible just didn't cut it.. I would have chosen a PS3 if anything of the last generation consols. But will be getting a Wii U soon :)

RE: Beginning of the end?
By talikarni on 1/30/2013 6:17:55 PM , Rating: 2
Growing up with the Atari and NES, I learned that most of the higher quality graphics gaming has been on the PC (once GPUs really started taking off), with consoles catching up every few years (then slowly falling behind again until the next big console release). Really, we can have DX11 now on PC, or wait until 2014-15 to get it on a console.

There are 2 mainstream gamer cores:
1) the ones who play for graphics that tend to stick with the PC (and very specific PS3 games, lets face it, HD gaming on 360 is a joke), and
2) the ones who play for fun and get a console that caters to their gaming needs regardless if it is the PSP, Wii or PS3.

I am a combo person, I like certain games to be great graphics as part of the adult fun (Resident Evil, Silent Hill, FF13, NFS), but otherwise I still play Mario Kart with the kids for fun, not graphics.

We have 2 Wiis but mostly for the kids games and Netflix. I did pick up a re-manufactured PS3 a few months ago and enjoying some of those titles (local garage sales with games like FF13 and NFS for $5) but I have had same or better graphics on PC games since before these consoles, so graphics are not as big to me anymore unless it affects or adds to the gameplay (like FF13 and NFS on my 1080p HDTV).

RE: Beginning of the end?
By chizow on 1/31/2013 9:56:53 AM , Rating: 2
I agree with much of your post, but the bit about graphics upgrades on the U being pointless missed the mark imo. Nintendo conceded the lack of 1080p hurt the Wii beyond the initial sales rush when compared to its contemporaries, as the big franchise titles didn't want to port to the Wii if it meant watering the graphics to handheld levels. The same titles have been backported to the Wii U and the upgraded graphic capabiliities were clearly an enabling factor.

I think the bigger point you allude to should have been mentioned in the original news story. I think sales of the Wii U are being hurt the most because any "last-gen" console owner is taking a wait and see approach with the expected launch of the next XBox and PS later this year. Current Wii owners that aren't completely disenfranchised from their previous purchase may go ahead and jump on board, but I think most will take a wait and see approach.

RE: Beginning of the end?
By Wererat on 1/31/2013 10:35:39 AM , Rating: 2
I disagree strongly. I see mobile gaming as a NEW market. I don't really observe people sitting on their couch gaming on their tablet; or rather, those that do aren't saying "oh, now I don't need to buy a Wii/Xbox/PS3 or PC."

The WiiU is a good advancement, but it's not making the waves the original did with then-revolutionary control. Nintendo made a leap for 'core' gamers, but I think most are waiting either for their already-chosen platform or at least to see what the next half-year brings before jumping.

Next holidays the news will report that PC gaming is dead as next-gen consoles dominate sales (because they're new). Nintendo appears to be trying to improve its offering with more connectivity; MS has already committed to a unified phone/console/PC look; no idea what Sony has in mind.

RE: Beginning of the end?
By Guspaz on 1/31/2013 5:55:57 PM , Rating: 2
The 3DS is still on track to break 100 million lifetime sales. It has sold roughly the same number of consoles as the DS did in the same period since launch, and the DS broke the 150 million mark. So handheld sales certainly don't seem affected.

If the 3DS' sales were closer to the Vita's levels, you might have a point there, but with the 3DS' sales being similar to the DS, this indicates major flaws in the Vita's business plan, rather than a weakness in the overall market.

"And boy have we patented it!" -- Steve Jobs, Macworld 2007
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