Topic: Nintendo Posts Loss for First Half of 2010

[Ian Sane]

With the 3DS on the doorstep I'm sure they'll be fine.

If Nintendo relies a lot on profit from hardware sales then this sort of thing is inevitable.  These are mostly one-time purchases.  What use is there in buying a second Wii?  You can really only sell that once to each household.  But there is no limit to the amount of games you can make and with each new game you have the potential market of every Wii owner.

When you talk about Wii sales dropping, it's no different then if Nintendo had ONE GAME.  Imagine it was just Super Mario Galaxy.  Would we talk about SMG sales dropping and how Nintendo is in trouble now?  Like the Wii it's an item you only sell to someone once.  They don't just have one game.  That's the whole business model of videogames.  But they only have one Wii.  If they want hardware sales to continue to bring them the moolah then they have to eventually bring in a Wii successor.  If they don't want to, fine, but then they have to adapt their business model to make a profit on games alone.

[BlackNMild2k1]

Reggie inputs on the matter:

Fils-Aime: Holidays More Important To Nintendo Than Rivals
http://www.gamasutra.com/view/news/31494/FilsAime_Holidays_More_Important_To_Nintendo_Than_Rivals.php

"The holidays are more important to Nintendo than to other manufacturers," said Fils-Aime at the BMO Capital Markets Annual Digital Entertainment Conference in New York on Thursday, as listened to by Gamasutra.

"We have a distinct edge when it comes to gift-giving, and it's no doubt because of the familiarity and recognition of both our brand and key franchises," he said.

Fils-Aime said that nearly half of all Nintendo hardware sales for last year came in the last two months of 2009. "For everyone else that number was just over 40 percent," he added.

"The disparity on the software side is even greater," Fils-Aime continued. "For Nintendo platforms, 44 percent of all game sales came during November and December. For the rest of the industry, that number was only 33 percent."

Fils-Aime said he expects "the same kind of advantage here at the end of 2010" thanks to key holiday releases like Donkey Kong Country Returns and Disney Epic Mickey on Wii, and Golden Sun on DS.

I still have my doubts as I don't think DKCR or EM have the kind of selling power or HYPE that NSMBW had last holiday season. But to sell more than 50% of hardware and 44% of all software in Nov-Dec is kinda crazy. Also must really hurt to have missed Xmas 2010 for the 3DS too.

[Ian Sane]

I think the Christmas thing makes sense regarding the stereotypes of the different userbases.  Core gamers want that big game yesterday.  They'll buy it when it comes out, regardless of what time of year that is.  Casuals don't care as much.  They haven't been following the game on the internet for months and months.  So they get their game as a gift at Christmas.  It makes perfect sense.  If you're not gaga over videogames what do you need to buy them all the time?  Might as well wait to Christmas.

It also fits with the kiddy stereotype.  Kids can't buy games for they have no money.  And unless their parents spoil them they're only going to get gifts on their birthday and at Christmas.  With Nintendo having so many family friendly games it makes sense that Christmas would make up a huge chunk of their sales.  The Halo target market can get that game whenever they feel like it.

[Caterkiller]

I worry a bit that DKCR won't have that much selling power. But the fact that it is 2D co-op gives me reason to believe that it could be a smash hit, especially since it comes from the Donkey Kong Country name.

[xcwarrior]

One loss in seven years is hardly worth the commotion. Nintendo still has a huge pile of cash they swim through every day. All this basically meant was for one week, everyone at the company had to wipe their butt with $1 bills instead of $10 bills and then they made up for the loss.

Ask Sony how their video game department is going right now. 360 I know is doing well but the PS4 is needed way more than a "Wii 2."