Full-year profits for Nintendo now projected to be 82 percent lower than expectations; sluggish 3DS sales, Wii U development costs blamed.
Nintendo is drastically cutting its profit forecast for the current fiscal year after a disappointing first quarter, the company announced today. The firm's net income for the year ending March 31, 2012, is now projected to be ¥20 billion ($260 million)--compared to its initial projection of ¥110 billion ($1.4 billion). Additionally, Nintendo expects its revenues to be 20 percent lower than previously forecast for the same period.
For the three months ended June 30, Nintendo's revenue dropped 50 percent year-on-year to ¥93.9 billion ($1.21 billion), leading to the firm losing ¥25.5 billion ($328 million), compared to ¥25.2 billion ($324 million) for the same period last year. Wii sales were down 49 percent compared to the year-ago quarter, while DS sales were down 54 percent year-on-year. DS software sales, meanwhile, were down 46 percent, with Wii software sales down 52 percent.
Nintendo sold 710,000 3DS units worldwide in the three months to June 30, bringing life-to-date sales for the handheld up to 4.32 million. In response to these sales figures, the firm announced that it's cutting the price of the handheld by 40 percent in Japan and by similar amounts in other territories. Nintendo still expects to sell 16 million 3DS units by the end of March next year. In the meantime, 4.5 million 3DS games were sold globally.
Nintendo's share price is currently at its lowest level in five years following sharp losses in the wake of its Wii U unveiling at E3. The company blamed the poor results on a combination of poor sales, unfavourable exchange rates, increased marketing spend and "expenses for research for new products like Wii U that will be released in 2012."
Alex Sassoon Coby has been involved in tech and video games journalism for the better part of a decade. He likes his games hard, his meat raw, and his women on wheels.
Infinity_Gauntl u are wrong.... EA said that WiiU has is pottentialy better than xbox 360 and ps3......... I know the videos were not from Wii U but that games are coming out to WiiU which loos kool.... Admited WiiU is going to be better than xbox 360 and ps3.... I think u are one of those guys that only own an ps3 or xbox..........
Nintendo expects too much of the 3DS. They also thought that fancy 3D is going to make it fly off shelves even when priced at $250. Even with the price cut the 3DS is missing something very important that pushes sales, a key component. GAMES. The 3DS lacks any real good games worth buying. No wait, actually, it lacks any kind of game at all. Look at all the cancellations and delays, Megaman Legends 3 is gone, Assassin's Creed is gone, Saint's Row is gone, EA's gardening game is gone, Metal Gear and Sega's games are all getting pushed back. This means the 3DS is going to be dry and out of games for the coming months. Oh! What about SSFIV, Zelda OoT and RE: Mercs you say? They don't count because they are just ports and remakes that can be played on other consoles. Many of these and even upcoming games like MGS and StarFox can already played on other consoles. What pushes hardware sales have to be exclusive, and unfortunately, the 3DS is missing just that. Now Nintendo, Black and White could have been and should have been a 3DS game. It's the first new generation Pokemon game I recall to appear on the same console as a last generation Pokemon game (Diamond/Pearl). If only you guys decided to make an awesome 3D Pokemon game, I'm pretty sure even those $250 3DS will be flying off shelves and into hands of millions of Pokemon fans.
Why am I not surprised that the 3DS sells did poorly? Nintendo released the same games we've already played 1,000 times. I wish Nintendo would focus on giving the Wii some more attention! I am NOT excited about Nintendo's new console at all. Nintendo is focusing too much on gimmicks and not GAMES! I'm starting to get sick of it! So, after Zelda Skyward Sword is released, Nintendo plans to let the Wii be smothered by third party shovelware??? This is not the Nintendo that I remember! Listen to your fans Nintendo and start giving us what Wii really WANT!
Nintendo need learn not depend only in the past. The last time i played Nintendo products was about 13 year ago. Nintendo 3ds was not a good project at all. And i am buying only to play emulator since has nothing new really nice for it. Keep with Sony after Nintendo was still the best choice for games.Just hope they realease something really nice to make me wish spend my money on them
You know Nintendo, there are three Wii games you could release in the US to boost your profits. Just sayin' :)
Dropping your profit forecast by 82% gives them ample room to say "We did better than expected" when March finally rolls around. Would June have been a better time to release the 3DS? Yeah, but they still would have spent millions on advertising during the months it wasn't out. Honestly, this makes me a little more confident in the Wii U launch. We as gamers haven't had a GREAT launch in years for any system, hopefully Nintendo will use this lesson to correct that.
People, most normal thing in the world are problems. Big N is trying to solve theirs, let them be!
@OurSin-360 Most of their good games don't have any gimmicks or at least make effective use of them, ntm their games have always had major changes no matter how old the franchise is and Nintendo has had new IP's but people never brought them and were overshadowed by Nintendo's main franchises and shovelware. Ntm, the 3DS is getting A LOT of games in late 2011/early 2012. Also, many 3rd party companies have said they want to support and make games for the system, meaning it'll have the support that's been waning since the N64.
Nintendo relies to much on nostalgia and control gimmicks. Best game on the 3ds was made like 15 years ago, most people don't even play the thing in 3d mode. I'm not even sure what the WiiU is, for the first 2/3rds of their press conference i thought it was a new controller for the wii lol. When was the last time they had a new IP?? Everything is Mario and Zelda or something else that came out on SNES. Which wouldn't matter if they supported 3rd party. Had a nice shot to get back gamers with the new platform but they went "wii" again, smfh
On a serious note, I do hope Nintendo takes their time and makes the Wii U have a better start than the 3DS. Not releasing the good and important stuff at launch was a mistake. But I can't be mad at them, we all make mistakes and we learn from them. As long as things get better, then so be it.
people and their pathetic complaints , first of all u do realise 3ds just came out 3 months ago 4.32 million is good enough and it will be better by the time vita comes if you think vita is going to sell 4 million in a day, ya not at that price it sure wont , see 3ds lol , and now that 3ds is 169 , psvita is in trouble! not only will it not provide nothing more then your ps3 cant already do , its going to be hard on developers ! and youll be paying 59,99 for a vita game instead you could just play the ps3 version of the majority and know your going to get ur moneys worth , that said , and since vita wont be out any time soon expect sales to date for 3ds to be enough out of reach that , vita will not even come close just like ds did , and if u think im wrong , better look up the past 20 years
I've had my share of fun with Nintendo in the 90's, however the proof is in the pudding...Nintendo is relying on a) gimmicks (crappy 3D & LCD in controller) b) old franchises that don't cut it anymore c) 3rd party shovelware of course sales are sluggish and the reason investors are bailing. What is most ironic is that Nintendo is always applauded for being "innovative".
@garland51 It's not even more about preference for me. I have to play with a controller. I lift heavy x2/week,Hill sprints x2/wk, and BJJ x3/wk. I don't have the energy to stand up and constantly move or wave my arms around. Sitting on my couch and just relaxing is one of the best things about playing games.
Most wii games suck if your over 13 yrs. The DS is getting too old and the 3DS does not have any good games yet. Things will get better once 3DS gets some good games and Wii-U comes out.
@McBoogerballz The 3D effect doesn't really get old, just a little out of place sometimes, especially when playing a game.
Im not excited for the Wii U but I wouldnt doubt Nintendo yet after all we dont even know what next gen console Sony and MS will offer.
I find it funny when people call the 3DS a gimmick, when other systems have "gimmicky" features as well. :P
3ds is a worthless console, wiiu tablet thing will cost twice more than ps3 xbox 360 and even without bluray, i knew its going to happen since wii release, abandoning 'next generation' its a fatal mistake in industry and nintendo did that mistake at 2006 at nintendo wii launch date
That's because people are waking up to the Nintendo Gimmickfest with worthless games to play on them.
The main problem, Nintendo like to play the conservative game too much. There system is under-powered, so they sell it for less but still make a killing profit, but then they end up with a inferior product in 2-3 yrs then people shift/move on.. There stocks take a hit, then they rush to quell the waters with another inferior product..
@pcty: I doubt it. Even Nintendo themselves said that they would take their IP's with them to the grave before they go to another console, should that ever happen. @zequex: Say what you will. I prefer to play games with a controller. Period. If it's not broken, why fix it?
@Infinity_Gauntl Uhh... I never said "3rd party support looks cool". I wasn't really surprised that the footage from E3 wasn't the WiiU. Considering that Nintendo itself had barely anything ready, I would actually be shocked that a developer was that far along. That being said, There should be no excuses about underpowered graphics and hardware anymore. So in that case I'm optimistic.
I think Nintendo is gonna end up like SEGA and go from a console manufacturer to a simple game studio with a lot of IPs.
@enoslives7 The gimmick of motion control is over. The wii is dead. Hardcore gamers told everyone, all along, that motion gaming was just a fad.....and they were right. People are tired of crappy shovelware. ************************************************************************************ Hardcore gamers are the minority though. I think you guys keep forgetting that. That's some fad when it will sell over 150 million units and will most likely surpass the PS2 in sames in a shorter time period. Motion Sensor controllers took gaming to a new level. VR gaming was a fad. That came and went, yet there is talk going on at Sony about bringing VR gaming back again. The Wii did have a lot of shovelware, but it also have a lot of quality games as well. The PS3 had almost nothing but shovelware when it launched. Now the quality has drastically improved. Nintendo have decided to go to the next level with the Wii U instead. The Wii has been a complete success for Nintendo and I'm sure they will leave it on the market for another 2 years.
@josecer "3rd party support looks cool....." - You do know the 3rd party support videos they showed at E3 were from other systems NOT Nintendo Right *Ok now I'm done
@josecer Read the interviews. the WiiU is supposed to be graphically comparable to the Xbox 360/PS3 not better.At least the PS3 was graphically better than the ps2. The wii is almost side by side comparable to the gamecube and YES nintendo left the Devs out in the cold and the hardcore gamers.
I doubt the wiiu will do any better than the 3ds. I can't see many none nintendo fans gambling on it, not after seeing the lack of decent games on previous consoles.
@Infinity_Gauntl everyone is saying this is a new version of the Wii. But they are wrong first of all the graphics are huge better so I see you dont know even the especifications..... the controller change all the persepective while playing and the 3rd party support looks cool.....so stop saying things if u dont even know about it....
@Infinity_Gauntl Wait, what? How do you know what is inside the WiiU? And how does one "fall prey" to it? It's a game system not a monster! The system shows awesome graphics! Also the term "third party support" is not talking about Nintendo supporting the third party devs like a mothering hen. it's about the THIRD PARTY DEVS supporting the system! Nintendo gave awesome tools for people to make great games and they got shovelware in return. Don't blame Nintendo for slacking devs. The Wii is capable of much more than it's been used for. Lastly if the WiiU is just a Wii in a new box with an new controller, then the PS3 is a PS2 in a new box with the SAME CONTROLLER.
@zequex As I don't agree with stealing thier old games. Nintendo is basically ripping off anyone who falls prey to the WiiU. Its basically the Wii in a new box w/ a different controller.People will buy it expecting better graphics (which it wont have) and nintendo really laid it on thick about 3rd party support for the WiiU but never considered the developers with the Wii ( totally unsupported) so they basically ripped everyone who has a Wii off.
@McBoogerballz It wouldn't work. To get the free games, you need to conect your 3DS to the internet on August 11 and you'll be registered in the "free games program". If you don't have your 3DS on August 11 then you won't be able to do it.
Wii was good when it first came out but not my younger sister's don't even play it & prefer to just use my psmove, & the same story also applies for my friend and his kinect. Wii is basically for party games, yet move & connect do them just the main game used when my wii is dusted off again for like an hour is wii sports
@Dragdar Nintendo fans are classier than pirates. As I see it, I paid an extra $80 to get 2 months early access to a great game and system. And I get 20 games Which, (if they averaged $5/game) is a value of $100. Also, if you are going to pirate games, why buy games at all? Thanks for supporting the industry, Dragdar!
@Dragdar I totally agree. The Wii is also a spit in the face to hardcore gamers and so is the already outdated (Graphically) WiiU.
Really? Ffs... I don't know what sadder. Nintendo for pulling the carpet out from under its fans, or the fans for THANKING Nintendo for doing so. You're happy that you bought an artificially overpriced handheld just so that Nintendo could spit in your face? HURR BUT LOOK AT ALL THESE OLD GAMES THAT I GOT THAT I COULD GET OFF THE INTERNET!!! Stay classy nintendo fans
@garland51 Did I say 3D has "taken off"? However if you ask Sony, they will tell you it has. Did you watch E3? Did you notice how much they are trying to get away from "traditional" forms of gaming? If a next gen console comes out that is just "more powerful", it will vanish in the wake of the competition that is "more powerful AND can do something unique". All three of the "Big Three" know this. You see it in their marketing. You can hear it in their interviews. You can feel it in the way new games are made. Inevitably, graphics and processing will run their course. (maybe not next gen, but eventually) People can only fit so much TV on a wall and they can only see so much detail with the naked eye. Handheld controllers are old school. They are comfortable and familiar. Motion controls are new territory. They are strange and unfamiliar. They are, at times clumsy and confusing but, when they are done right, a whole new world of possibilities open up. At this time in history, motion controls give console makers a way to make amazing looking games play better and more intuitively. Sticking with the way things have always been done is a sure way to kill the industry. Things change and things grow. Enjoy the journey and look to the future, and never forget the past that got us where we are today.
What I'm wondering the most is why can't people give the consumers more credit for their intelligence; they knew the 3DS wasn't worth $250
I think the 3DS price drop and the launch of the Wii U are their final push. With all this profit loss, I think this is all they can afford to bank on. The Wii U needs the most up to date CPU's and GPU's they can find or else they will get absolutely DEMOLISHED by the competition in less than 2 years time. If that happens it's GG Nintendo, they wouldn't be able to sustain R&D costs for another successor. Right now it's literally life or death and I'm not ready to see Nintendo disappear =/, PLEASE PLEASE PLEASE NINTENDO!!!! Play this smart for once!!!! I BEG OF YOU!
guys, if you buy a 3DS in July or late June, here is what you can do to possibly get a new 3DS with lower price and the free games. Register your Nintendo Club account and link it to your 3DS; return the 3DS for a refund, most stores such as Amazon and Gamestop will not really bother to ask you why; amazon will only charge you a 3.98 shipping fee (dislink first though)... Buy one after the price drop, link the NIntendo Club account to your new 3DS.. PROFITTTT, and with all these extra-club points, you can even get a free nintendo fan bag for free.
@dawnofhero hey bro, i see your point.. I want 3DS will do well too since I currently own one.. However, the Vita at least looks to be better at their "gimmick" than 3DS.. The 3DS touch screen doesn't support multi-touch, and it doesn't have a chatting system which really bothers me. BTW, how many games really take advantage of the 3D effect, it gets quite old really quickly, don't you think.
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