Nintendo's earnings report today showed the first drop in profits the company has seen in four years. For the six month period ending September 30, the Kyoto giant's operating income fell 58.6% from the same period last year to 104.3 billion yen. The Wii platform took a major hit, its sales falling 43% from last year to 5.75 million units. Nintendo ended up lowering its Wii sales forecasts for the full year from 26 million units to 20 million units.
Mainichi Shimbun reports that Iwata, speaking at a press conference in Osaka today, said "Wii has stalled. We were unable to continually release strong software, and let the nice mood cool."
This is no surprise to me at all. I have been a Nintendo fan since the NES days, but even I have been severely disappointed with the Wii's lineup of games. What the hell has Nintendo been doing all this time?? Where are the games?? The system sells insanely well, but its success is riding off of Wii Fit, Wii Sports, and Wii Play which are the same games it has been relying on since the beginning. Where the hell is anything else?
I REALLY hope that Nintendo has something up their sleeves and they have a bunch of A+ games in the pipeline that they just aren't ready to unveil yet. This year has been a severe disappointment in terms of quality Wii Games. It is reassuring that Iwata seems to be aware of the problem, and I hope and pray he is working on a solution before the PS3 and/or 360 catches up, and if things don't change they will. Players want and demand more than party and parlor games. Where are the original IPs? Where are the "hardcore" games?
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: BlackNMild2k1 on October 30, 2009, 04:00:50 AM
http://www.nintendoworldreport.com/forums/index.php?topic=29667.msg560273#msg560273 ^link to Reuters quote and Nintendo Financial Report .pdf from this morning.
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: GoldenPhoenix on October 30, 2009, 04:57:41 AM
Nintendo is obviously doomed again.
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: Plugabugz on October 30, 2009, 08:49:09 AM
Destruction, strife and crying dogs. It's a sad day. We mourn.
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: Caterkiller on October 30, 2009, 11:58:50 AM
Check this out, Iwata talks about the slow down. Don't know if it was posted anywhere. http://www.n-europe.com/news.php?nid=13639
"Wii has stalled. We were unable to continually release strong software, and let the nice mood cool. We were unable to show a new game to become 'the next thing.' In the game market, once you've lost the momentum, it takes time to recover. With the price drop, sales returned to a certain level, but they just did not reach the level of last year around this time. We decided that it would be difficult to sell enough to recover from the poor performance of the first half of the year. In order to reach it (20 million target), we'll have to move quite a large quantity, but it's a figure we released after having felt the momentum returning [based off the price drop]."
Basicly admitting that they made a mistake. Very interesting and odd no one tried to make things more positive in some screwy way.
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: BlackNMild2k1 on October 30, 2009, 03:01:52 PM
Complacency. They should have had more high profile projects on the fast track instead of in the research & test phase. Even getting NSMB out the door at the same time as the price drop could have helped alot. Maybe more colors, more colors and more colors. Japan obviously wasn't waiting for a Black Wii(America is, where is it Nintendo!?), but a red, baby blue, green or even pink one could have done the trick, why not release them all?
Maybe using some of those record profits to help finance "exclusive" projects with 3rd parties or create new development studios to help fill in the gaps. Maybe more projects that utilize their own peripherals & features, WiiSpeak(?) MotionPlus(?) BalanceBoard(?), Online(?). And what happened to Kuju, NSpace, NST, Factor5, Camelot, Brownie Brown, Retro Studios and whoever else I'm not remembering? What are they working on? Let us know whats in the pipeline sooner than 2 months before release. edit:*and ADVERTISE ADVERTISE ADVERTISE, and not just the BIG NAME games, but all of your games!!*
There are lots of things Nintendo could have done differently and a few of them it's not too late to fix, so I hope they stop counting their money for a few seconds and make sure they got all their affairs in order.
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: ShyGuy on October 30, 2009, 03:42:34 PM
Time to bring in Project Hammer, Disaster DOC, Fatal Frame 4, and Another Code Wii for the NA market to spur sales.
Also, bring out Dynamic Slash in Europe for KDR11k
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: NinGurl69 *huggles on October 30, 2009, 04:13:27 PM
Those won't spur anything if Nintendo doesn't advertise them, as expected.
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: KDR_11k on October 31, 2009, 03:33:44 AM
As I said, I see piles of deeply discounted Disaster copies in stores, that game bombed. No idea if it's a lack of advertising though, may very well have been.
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: Peachylala on October 31, 2009, 12:58:57 PM
Quote
Where are the original IPs? Where are the "hardcore" games?
These words are the exact reason I'm becoming less of a gamer then I used to be.
The thing with original IPs is that most of the time these IPs flourish on the PC or indie, a perfect example is Lost Winds or any good WiiWare game. Original IPs on consoles, however, are a completely different beast altogether. If your IP isn't attached to a big name franchise, then good luck on getting sales. Wii Sports and Resort are IPs invented this generation, and so far have been massively successful since they cater to a wide audience. IPs that cater to the non-casuals, however, get the shaft from the VERY SAME AUDIENCE Nintendo and/or third parties are catering to.
Quality, however, is another issue altogether. This generation has seen quality, except Ninty's own games, take a nose-dive because developers are working more on style and less substance. Need I even being up that we now call third parties Third Excuse Makers because they make such dumb excuses?
As I said, I see piles of deeply discounted Disaster copies in stores, that game bombed. No idea if it's a lack of advertising though, may very well have been.
More proof that Nintendo's "hard core" just bitch and don't buy. >=/
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: D_Average on October 31, 2009, 01:50:13 PM
They put a few rhinestones on a brown leather Wii, and I'll buy another. Nothing to be worried about here.
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: King of Twitch on October 31, 2009, 08:50:20 PM
As sad as the sales charts might be, these "Seniors love Nintendo Wii" stories keep rolling right in, like it's 2006
Another Huntington Beach bowler Gloria Gangitano, 77, said it was initially difficult to conquer the Wii controller.
"At the beginning you go, 'Oh my God, why do I push this one (button) and not this one," said Gangitano, who does not have e-mail.
F.P.
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: Deguello on October 31, 2009, 09:21:46 PM
What's amazing is the lack of spin from Iwata. Anybody else gets asked about how their console is outright failing and we hear about 10-year-plans and "1 billion gamers" and whatnot. That amount of frank candor is truly surprising because I expected him to blame the economy like some do.
About what Nintendo needs to do to stay ahead? Well, nothing at this point. They're still outselling everybody, for the most part. But if they want their console to really flourish, they'll need to expand their internal game developers and expand their American localization staff. They might want to flex their money as well, as they have a ton of it and they only make one thing, as opposed to their competitors, one of whom's games division is running out of all the money they've earned since 1998 and another who is something like $9 billion in the hole.
Nintendo's done a lot without third parties, in fact they've even WON without third parties. But now would be the time to start tying together $100 bills and throwing some of these struggling third parties lifelines, particularly Japanese ones. They could go onto an acquisition spree (They have enough money, just from last year's profits, to buy both EA and Square-Enix outright, and have enough left over for donuts), but that might have bad counter effects if all their talent leaves when Nintendo buys them (which would prove a certain truth that's been bandied about here before.) But they should be trying to mend this gap, because they made a foolish error in thinking simple logic and basic arithmetic would bring over most of them. It's like you know who your friends are on moving day. Nintendo needs to help them move, so to speak.
OR they could do what Sony did with Squaresoft back in 1997 and buy up stock in a lot of these third parties and use that influence. Or even buy controlling stakes, which would be cheaper than just buying the company outright and would have about the same effect.
And all of this I think Nintendo realizes because this business is a fast paced one, and standing still for a long time allows for decline to creep it's ugly head (such as Square Enix's case, where most of their revenue this generation has come from DS ports of old games they had already developed, while their console games take ages to complete.) And let's not forget that they must have a (while still sensible) large development budget for their next console. The falling technology prices and abject failures of their competitors will allow for a laser focus on the best things to appropriate. It's their turn on stage, they should use it to their advantage.
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: that Baby guy on November 01, 2009, 01:47:59 AM
I still think they need to pack a little bit more value into the Wii's sales pack. Bundling Wii Sports Resort and two controller sets would probably increase interest, just because the purchase would be simpler.
Stores should carry "Suggested Bundles" where they have a simple to read guide to getting started on the Wii. Identify the interests of the buyer, and recommend the equipment for the number of the players. Just don't force it, and make it easy to use.
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: KDR_11k on November 01, 2009, 04:11:27 AM
That's what every store around here does.
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: Ymeegod on November 10, 2009, 05:21:22 PM
Nobody bothered to read profit drop? At least it's still in the green and that's better than either Sony or MS.
And yeah, the standard Sports pack or Mario Kart are a bit stale. I'm surprised they didn't try to bundle the new Super Mario WII game or even pack it with the newer Sports Resort.
New packages help, you should see MS's MW2 bundle is selling.
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: BruceBalance on November 12, 2009, 06:54:59 PM
Nintendo's earnings report today showed the first drop in profits the company has seen in four years. For the six month period ending September 30, the Kyoto giant's operating income fell 58.6% from the same period last year to 104.3 billion yen. The Wii platform took a major hit, its sales falling 43% from last year to 5.75 million units. Nintendo ended up lowering its Wii sales forecasts for the full year from 26 million units to 20 million units.
Mainichi Shimbun reports that Iwata, speaking at a press conference in Osaka today, said "Wii has stalled. We were unable to continually release strong software, and let the nice mood cool."
This is no surprise to me at all. I have been a Nintendo fan since the NES days, but even I have been severely disappointed with the Wii's lineup of games. What the hell has Nintendo been doing all this time?? Where are the games?? The system sells insanely well, but its success is riding off of Wii Fit, Wii Sports, and Wii Play which are the same games it has been relying on since the beginning. Where the hell is anything else?
I REALLY hope that Nintendo has something up their sleeves and they have a bunch of A+ games in the pipeline that they just aren't ready to unveil yet. This year has been a severe disappointment in terms of quality Wii Games. It is reassuring that Iwata seems to be aware of the problem, and I hope and pray he is working on a solution before the PS3 and/or 360 catches up, and if things don't change they will. Players want and demand more than party and parlor games. Where are the original IPs? Where are the "hardcore" games?
The "hardcore" games are usually third party games, and since they hadn't done well in the past, third party developers just don't want to invest time or money in making more for the Wii. I mean, this isn't news. Has been a question since 2006.
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: NinGurl69 *huggles on November 12, 2009, 06:58:57 PM
Well yeah, Nintendo didn't throw around money hats last gen, and they're hardly throwing any now.
If the money hats aren't arriving, do the smart thing and close some studios and layoff workers. The main publisher will do just fine.
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: Chozo Ghost on November 13, 2009, 04:20:20 AM
Nintendo should have plenty of money now for money hats and the like. Its time they used it.... I mean, seriously, what is Nintendo doing with all of its new wealth? I don't know, but obviously they aren't putting that money into games development and moneyhats.
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: BlackNMild2k1 on November 13, 2009, 02:56:16 PM
Once you negotiate with terrorist, you open a door that is not easy to close again.
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: NinGurl69 *huggles on November 13, 2009, 03:56:33 PM
Indeed, a toilet that won't flush.
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: cubist on November 13, 2009, 05:58:05 PM
It's funny. The new October 2009 NPD data says that Nintendo is in good shape. Nintendo loyalists like myself are awaiting N64 and GCN fates for this system. While hardware numbers continue to do well, it's the software side that still holds back a lot of 3rd party love.
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: Mop it up on November 13, 2009, 05:58:48 PM
I just raised my Wii game buying projection, will that help Nintendo?
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: NinGurl69 *huggles on November 13, 2009, 06:02:33 PM
3rd parties will respond, "YES! Someone to buy our spinoffs!"
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: Chozo Ghost on November 13, 2009, 11:37:59 PM
Once you negotiate with terrorist, you open a door that is not easy to close again.
I didn't think of that, but it is a good point. If Nintendo gave out money hats the 3rd parties might start to expect it and the 3rd parties who don't get the moneyhats might get pissed off that others do and they don't. But then again, how is it that this strategy works for Sony and MS? Nintendo doesn't buy 3rd party love and they don't get any... what can they do to change that?
Title: Re: Nintendo Lowers Wii Sales Projections
Post by: BlackNMild2k1 on November 13, 2009, 11:54:51 PM
Sony stopped doing it, look at where they are now. They get alkot of multipatform games out of default just for having HD.
MS has all the $$$$ in the world and assumes that they can continue to buy their way to the top. They have yet to turn an actual profit from the money spent on the original Xbox, so you do the math on that.
Nintendo is (too little too late) trying to reach out to 3rd parties by offering marketing support, but what they probably should do is send out a few bodies and give some development & marketing support in exchange for exclusivity(also Nintendo would get a larger share of the profits too).
