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Nintendo has some serious financial loss.


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#1
Dominus

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An article from Gameinformer has released the fiscal results from nintendo in its midterm report...and it isn't looking good.

Yesterday there was a report from Nikkei that Nintendo would announce a group pre-tax loss of approximately 100 billion yen ($1.3 billion) for the half-year, but according to Nintendo, this figure actually turned out to be 107 billion yen.

Nintendo is forecasting a 20 billion yen loss for the full fiscal year that ends in March 2012, and which includes the upcoming holiday season – this is a marked swing from a July estimate of a 20 billion profit for the same time period. The company says that it's being hurt by an unfavorable exchange rate, but also by "weaker than expected hardware sales."

Although Nintendo says that the 3DS' price cut has improved sales of the system – which sold only 3.07 million units worldwide over the last six months – it admitted that the handheld "has yet to have many hit titles." This may change when Super Mario 3D Land comes out on November 13.

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So, the point of discussion is what do you make of the information, and what is the likely fate of the company? Can Nintendo manage to survive such heavy losses and come out a victor, or is this it for the gaming company?

I think they'll manage, but it may take a very long time to survive a hit like that. What do you think?
 

Modifié par DominusVita, 27 octobre 2011 - 10:24 .


#2
Arcadian Legend

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Oh, damn. Don't go dying on us Ninty!

#3
KenKenpachi

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That isn't that serrious really, just 263 million USD. I mean in terms of the BILLIONS nintendo is worth, thats just a speed bump. In fact that artical has currency rates way the hell off. But what do you expect of gameinformer.

Then again I don't think they know how to play the currencies and you have different trade index's, I wonder who's they were using.

Modifié par KenKenpachi, 27 octobre 2011 - 09:30 .


#4
chrisuuuu

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Yeah their assets are still above a trillion yen. And of course they won't see the returns of a major hardware launch til later and in the case of the 3ds basically flopping, they are bound to take a hit. iOS and Android will utterly decimate dedicated handheld devices. I'm predicting it first: Playstation Vita is dead on arrival. Nice specs right now but smartphones are increasing their capabilities exponentially in such a short time frame. In all my classes I've counted 90 percent of students have smartphones, 25 have tablets, and none have psp, ds, etc. When I first started college you saw DS and PSP everywhere...not a single peep this year (except me =(....) though I've been gaming on my iPad 2 like crazy as of late

In the coming generations, I really don't see home consoles as anything more than a niche in hte market and WILL PLAY SECOND FIDDLE to iOS and Android gaming.

Modifié par chrisuuuu, 27 octobre 2011 - 09:37 .


#5
KenKenpachi

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Yeah hand held gaming I wonder about, I mean the projections NASA and various other space adminstrations have for 2012-13, that no one is taking serriously, if such a solar event happens, well minus Military satcom systems, the Civil network is dead, good by smart phones. But that to me is the only thing that could save handheld gaming, is if the smart phone and social network as a whole are pulled, ruined, or shut down.

As long as they keep up hand held is dead in the traditional manner. Course also with the above you run the risk that the event may also screw up the power grid for good, in which case ninteno will only gain profit if it sells ass less chaps and guns to raiders in the wasteland.

Aslo the PC market growth is reversing, so don't hold out on the console going anywhere, recent trends show other wise. Most people dont know how, or want a gaming PC given all the money and upgrades needed for it.

Anyways I need to write a email to nintendo about "Maybe" making weapons, that may be hidden in WII U boxes for when the solar events happen.

Modifié par KenKenpachi, 27 octobre 2011 - 09:43 .


#6
naughty99

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DominusVita wrote...

An article from Gameinformer has released the fiscal results from nintendo in its midterm report...and it isn't looking good.

Yesterday there was a report from Nikkei that Nintendo would announce a group pre-tax loss of approximately 100 billion yen ($1.3 billion) for the half-year, but according to Nintendo, this figure actually turned out to be 107 billion yen.

Nintendo is forecasting a 20 billion yen loss for the full fiscal year that ends in March 2012, and which includes the upcoming holiday season – this is a marked swing from a July estimate of a 20 billion profit for the same time period. The company says that it's being hurt by an unfavorable exchange rate, but also by "weaker than expected hardware sales."

Although Nintendo says that the 3DS' price cut has improved sales of the system – which sold only 3.07 million units worldwide over the last six months – it admitted that the handheld "has yet to have many hit titles." This may change when Super Mario 3D Land comes out on November 13.

---

So, the point of discussion is what do you make of the information, and what is the likely fate of the company? Can Nintendo manage to survive such heavy losses and come out a victor, or is this it for the gaming company?

I think they'll manage, but it may take a very long time to survive a hit like that. What do you think?
 


20 billion yen loss is not so much for a massive company like Nintendo which has been developing a new game platform.

Roughly equivalent to $260 million.

#7
Dominus

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Gameinformer was very misleading, then. It's a major dent, but they're not going overboard.

#8
KenKenpachi

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Gameinformer sucks at math I think, even on the "Going Green" they were talking about power useage by system and were way overboard, or the whole real dollar to game system conversion was way off.

#9
RPGamer13

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Come christmas, their handheld and game sales are going to get a boost.

#10
Nashiktal

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That's not a debt, its a loss. While nintendo made some very embarrassing mistakes they are not out of the game by a long shot. We can look forward to the big three causing console wars for quite some time now.

#11
naughty99

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IIRC, Wii is the most successful video game console ever released with something like 88 million units sold since launch.

They are not likely to go bankrupt anytime soon.

#12
KenKenpachi

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Nashiktal wrote...

That's not a debt, its a loss. While nintendo made some very embarrassing mistakes they are not out of the game by a long shot. We can look forward to the big three causing console wars for quite some time now.


Idk in part I think its as gameinformers staff for the most don't like Nintendo, its just the tone they set in a number of reviews.

#13
Arcadian Legend

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Eh I can't stand the console war. All sides have their merits and cons.

#14
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Actually, I'm expecting they'll rake in some nice profits from Skyward Sword sales next month - I know I'm throwing down money for it. LOL.

Maybe it won't offset the losses posted there, but it certainly won't make things any worse.

#15
Dominus

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I'm actually in agreement with green on that. They've made some major flubs, but skyward sword actually looks like the real deal. This is coming from a Wii-Hater.

#16
chrisuuuu

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naughty99 wrote...

IIRC, Wii is the most successful video game console ever released with something like 88 million units sold since launch.

They are not likely to go bankrupt anytime soon.


The Wii is not., it's actually the PS2 which sold around 150 million units. The PSX also has sold more than the Wii.

#17
Arcadian Legend

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chrisuuuu wrote...

naughty99 wrote...

IIRC, Wii is the most successful video game console ever released with something like 88 million units sold since launch.

They are not likely to go bankrupt anytime soon.


The Wii is not., it's actually the PS2 which sold around 150 million units. The PSX also has sold more than the Wii.


Perhaps he only meant of this generation?

#18
chrisuuuu

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DarkRiku7 wrote...

chrisuuuu wrote...

naughty99 wrote...

IIRC, Wii is the most successful video game console ever released with something like 88 million units sold since launch.

They are not likely to go bankrupt anytime soon.


The Wii is not., it's actually the PS2 which sold around 150 million units. The PSX also has sold more than the Wii.


Perhaps he only meant of this generation?


He did write "ever released"

#19
Sylvianus

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 I read the business press , and they say it's a disaster for Nintendo.

I predicted some years ago, that their direction would be good in the short term, but over the long term, they would lose the match face to sony or microsoft without a solid work over time. I was right

They ignored the biggest market that is the hardcoregamers
, trying rather to seduce the young audience to the utmost, by expanding their market. Too confident in their first and incredible results.

They tried to sell the same recipes from the past with some new Gadget.

  3 DS is the same as the DS, and the 3DS is not selling well because of that ( what's the point if I have already one, I don't care to be able to draw my face... ), and there were not enough games released in the same time when this console came out.

Also they lacked range of video games on Wii and especially  high quality games or known and great , as they did not have the graphics horsepower that can accept them. The movements were also very difficult to match with a lot of games, and many creators  like ubisoft abandoned their will to use the wii. Too complicate.

Too many time, some great games were released both on xbox360 and ps3 and NOT on the Wii, upsetting their consumers. A graphical power they deliberately ignored, denied, for the sake of not being in perpetual war with other platforms. A strategic mistake, they will try to reduce, with their new console. Finally they  understood.

Today, many wii players are complaining because, this console sucks for them, not enough great games, often childish and attractive only for casual gamers like young adolescents, or families. The gamers are frustrated and for many their only hope are in the headlines as zelda.

Super Mario Galaxy was supposed to be one of the biggest success for Nintendo, but very disappointing for them. bad sales. They did not understand that yes Mario is popular, but that providing the same recipe as in the past ( mario 64.... )etc , was an unnamed idiocy. That's not what want the players.

I hope for their next console, they will work hard to restore credibility in the eyes of a market increasingly suspicious and annoyed by the lack of a solid content, which allows it to enjoy the platform over time .

Because when you decide to buy a console, it is a long-term investment. Someone who decides between Sony, Nintendo and microsift will arise the question of which platform would I most likely to have good games for several years?

And clearly, on this field, the Wii has greatly disappointed in Europe and the united states that are not markets to ignore, even if Japan remains the largest.

Modifié par Sylvianus, 27 octobre 2011 - 11:45 .


#20
Lord_Valandil

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This was bound to happen, in my opinion.
They totally focused on crappy gadgets and casual games a la "Wii Music" and so on...and I'm already sick of their characters...I mean, I don't hate them, no, no. And I do know that Sony doesn't stop to release new Kratos and Solid Snake appearances, Microsoft with Marcus Fenix and Master Chief...but it's always Zelda, Zelda...if it wasn't for Zelda, I don't know which game could save Nintendo's ass.
That, and Mario. Mario Party this, Mario Kart that...Give us a break already, Ninty.
How about a new IP? Or something like...you know, different. I'd kill for a Golden Sun game on the Wii...and also, not to mention NOA's refusal to release Xenoblade and other games on the US.
So, they kinda deserve it.

#21
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I've always wondered why a Golden Sun game wasn't in development for the Wii - the Psynergy system in those games is a perfect fit for the system's motion controls.

It wouldn't exactly be the first opportunity Nintendo has squandered, however - so perhaps I shouldn't be surprised.

Modifié par greengoron89, 28 octobre 2011 - 12:23 .


#22
slimgrin

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I'm sorry, but they should have seen this coming. Their console is a dinosaur.

#23
Fortlowe

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Lord_Valandil wrote...

This was bound to happen, in my opinion.
They totally focused on crappy gadgets and casual games a la "Wii Music" and so on...and I'm already sick of their characters...I mean, I don't hate them, no, no. And I do know that Sony doesn't stop to release new Kratos and Solid Snake appearances, Microsoft with Marcus Fenix and Master Chief...but it's always Zelda, Zelda...if it wasn't for Zelda, I don't know which game could save Nintendo's ass.
That, and Mario. Mario Party this, Mario Kart that...Give us a break already, Ninty.
How about a new IP? Or something like...you know, different. I'd kill for a Golden Sun game on the Wii...and also, not to mention NOA's refusal to release Xenoblade and other games on the US.
So, they kinda deserve it.


On characters, the one character that always appealed to the more hardcore among we nintendo fans, was Samus. the Metroid, series, especially the Prime series were ripe for making a big push at hardcore shooter superstatus. What does Nintendo do? Give it to another Dev and let them ruin it, with Other M. For, bloody, shame.

#24
Chromie

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Didn't one of the Metroid Prime games have like a splitscreen multiplayer component? I could be mistaken, if so, I wonder why they never decided to make an actual multiplayer online component.

#25
naughty99

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chrisuuuu wrote...

naughty99 wrote...

IIRC, Wii is the most successful video game console ever released with something like 88 million units sold since launch.

They are not likely to go bankrupt anytime soon.


The Wii is not., it's actually the PS2 which sold around 150 million units. The PSX also has sold more than the Wii.


I stand corrected. In any case, 88 million units retailing at $100-200 plus all those Wii-Mote, Wii-Fit, Rock Band, Guitar Hero, etc., accessories adds up to a lot of revenue.

19 out of the top 20 most successful games of all time have been Nintendo titles

Modifié par naughty99, 28 octobre 2011 - 01:13 .