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3DSWiiU

3DS Helps Nintendo Achieve Profitable Quarter, Wii U Sales Falter

by Tom Malina - July 31, 2013, 9:16 am PDT
Total comments: 30 Source: Press Release

Success in the handheld space makes up for the new home console's woes.

Nintendo posted a net profit of 8.62 billion yen ($87.8 million/£57.7 million) for the second quarter of 2013 thanks to flourishing 3DS sales, in spite of the Wii U's continued struggles on the market.

According to the most recent financial report, the increased profitability of the 3DS coupled with the depreciation of the yen helped the publishing giant to record these results, allaying the negative impact of the Wii U's poor performance.

From April 1 to June 31, the Nintendo 3DS and 3DS XL combined sold 1.4 million units worldwide, a 12% increase over sales during the same period last year. This brings lifetime-to-date sales for the handheld up to 32.48 million.

The most successful software was Animal Crossing New Leaf, which sold 1.54 million copies during this period, while Luigi's Mansion: Dark Moon and the Japan-exclusive Tomodachi Collection also had strong quarters, with 1.43 million and 1.39 million copies sold, respectively. Overall, more than 11 million sales in 3DS software were recorded, a 10% improvement year-on-year.

The Wii U did not fare nearly as well in Q2. It pushed a meager 160,000 systems, leaving its overall worldwide sales at just 3.61 million. In their report, Nintendo attributed these low figures to the small quantity of key first-party titles released, with only Game & Wario and New Super Luigi U launching during this time.

The publisher has stated that it plans to regain sales momentum for the console before the end of the year with the strategic release of games such as Pikmin 3, Super Mario 3D World, Donkey Kong Country: Tropical Freeze, The Legend of Zelda: The Wind Waker HD and Wii Party U.

Talkback

broodwarsJuly 31, 2013

Note: Sorry, I meant to post this in this thread, but accidentally clicked on the wrong one and now I can't delete the other post.  Sorry.  Re-posted from the other thread:

That whole meme with the ambulance going "Wii U! Wii U!" is proving increasingly prophetic with each passing month.  That said, I would be surprised if that wasn't the worst quarter the Wii U has this year given the lack of releases, though I don't think they'll pick up that much over the Fall months given the Wii U's lineup.

One thing's for sure, though: Nintendo can't keep playing status quo with the Wii U. It's getting some software over the rest of the year & early next year, but it needs far more and 3rd parties aren't going to bring it.  I'd say that I hoped Nintendo was prepared to support their console on their own, but they never have been so why bother?  Combine some software with a price drop, and the Wii U could spend its coming last 2 years of life limping to the finish line.  But it's going to take several radical moves from Nintendo to pull this console out of the hole Nintendo has dug for it, and at this point I think a change in management should be one of those.

paleselanJuly 31, 2013

I don't think there's any way to possibly put a positive spin on those Wii U sales. It's quite unfortunate, really. Good for 3DS, though.

Ian SaneJuly 31, 2013

Nintendo can't just pull games out of their butt since they time to make.  Even if they hired more people the first games from those employees would take a few years to complete.  They just can't increase their output in a quick enough time frame for the Wii U to turn around.  They've got a good lineup due soon but after that, then what?  I doubt the release schedule will stay that full.  It'll just go back to another drought.

Nintendo needs to beef up their manpower and, frankly, get to work on a new console.  If the Wii U doesn't turn around over this Christmas, write the Wii U off as a failure and release a console that can compete with the next gen and provide multiplatform compatibility and it needs to be released really soon so that the PS4 and XB1 don't have so much of a lead that third parties complain that the new Nintendo console doesn't have the sales of a well established competitor.  A problem with the Wii U is that its third party games are available on consoles that everyone has already owned for YEARS.  So a Nintendo console that can actually compete needs a 2014 date.

Prepare for the worst and make the final decision after Christmas.  No one has bought the Wii U so the sooner you put it out of its misery, the less people you offend with its short life.  This Christmas determines if it succeeds or fails and if Nintendo needs to replace it they need to be ready for the 2014 Christmas season with a replacement.

pokepal148July 31, 2013

ditching the wii u is the last thing Nintendo should do unless they want to follow sega out of the console race

Luigi DudeJuly 31, 2013

Last quarter was April, May and June.  The only Wii U game released in that time was a crappy Wario Ware spinoff at the very end of June.  In comparison this Fall has a main Sonic, Donkey Kong, Mario & Sonic, 3D Mario, Wii Party, and Wii Fit.  Also Nintendo hardware always gets a huge increase during the holiday season.

Once again this is just like the original DS and 3DS.  Both systems sold like shit at first because of lack of games, but when the major titles started coming out sales increased.  Hell, for the 3DS, Mario 3D Land and Mario Kart 7 alone carried the system during the 2011 holiday in the West into the first half of 2012.  The Wii U has one of the strongest holiday lineups in Nintendo history this Fall and has Mario Kart 8 coming out in the first half of 2014.


The 3DS is currently showing that Nintendo software is still very popular.  Once the Wii U starts getting the games it'll be just fine as well.

broodwarsJuly 31, 2013

Quote from: Luigi

The Wii U has one of the strongest holiday lineups in Nintendo history this Fall.

*spit take*

What?

I'm getting as tired of the 3DS comparisons as some are the Doom & Gloom.  The 3DS didn't have strong competition like the Wii U does and the 3DS did get a huge price drop that the Wii U has not.  The Wii U is also facing 2 superior platforms releasing this Christmas along with the current-generation competition it already can't handle in the PS4 and Xbone.  The 3DS didn't have that.  The comparison between the 2 is so weak it's not even worth making.

Luigi DudeJuly 31, 2013

Quote from: broodwars

*spit take*

What?

I'm getting as tired of the 3DS comparisons as some are the Doom & Gloom.  The 3DS didn't have strong competition like the Wii U does and the 3DS did get a huge price drop that the Wii U has not.  The Wii U is also facing 2 superior platforms releasing this Christmas along with the current-generation competition it already can't handle in the PS4 and Xbone.  The 3DS didn't have that.  The comparison between the 2 is so weak it's not even worth making.

Only Microsoft and Sony aren't competing directly with Nintendo.  Microsoft and Sony's launch lineups are focused on the 18-34 male audience who never really cared much for Nintendo anyway, while Nintendo's holiday lineup is focused on kids and families, the people who bought the DS, Wii and are currently buying the 3DS.

Once again, you need to realize that your opinion doesn't represent the general population.  You honestly think games like Killzone and Infamous are going to steal away the people who want the newest Mario and Donkey Kong?  The only game that was being released on the One/PS4 this Fall that could have actually hurt Nintendo was Kinect Sports Rivals for the One, but that was delayed until 2014.

So yes, Nintendo will be just fine this holiday because Microsoft and Sony are once again fighting over a completely different demographic of gamers then who Nintendo's games appeal to.

broodwarsJuly 31, 2013

Quote from: Luigi

Once again, you need to realize that your opinion doesn't represent the general population.  You honestly think games like Killzone and Infamous are going to steal away the people who want the newest Mario and Donkey Kong?  The only game that was being released on the One/PS4 this Fall that could have actually hurt Nintendo was Kinect Sports Rivals for the One, but that was delayed until 2014.

The people who want the newest Mario & Donkey Kong already own a Wii U.  It's not like the other platforms only have the likes of Killzone & Infamous, either. Just this fall, Sony has Knack; Ratchet & Clank; and The Puppeteer along with the likes of Beyond: Two Souls and Killzone: Shadow Fall.  See, unlike Nintendo, at least one of the other platforms actually have variety of experiences.

Luigi DudeJuly 31, 2013

Quote from: broodwars

The people who want the newest Mario & Donkey Kong already own a Wii U.

Oh so the 8 million people who bought Mario 3D Land, have already bought a Wii U for 3D World, even though their currently isn't even 8 million Wii U's sold?  Or the 5 million people who bought Donkey Kong Country Returns have already bought a Wii U for Tropical Freeze, even though 5 million Wii U's haven't been sold either?  Not to mention both games were announced at E3 which isn't even two months old yet, and something most kids and parents have no idea even exist.

Seriously, take a basic marketing class because statements like this just prove you have no fucking idea how brands and marketing actually work.

broodwarsJuly 31, 2013

The audience who bought those games is gone now, and Nintendo's not going to get then back. They jumped when the Kinect and IPS markets surged. You'd have to go back to GameCube numbers for a true indication of those games' potential.

Kytim89July 31, 2013

It is time for a Wii U price cut. With the line up of games this holiday season it might spur sales if hold outs could get the system cheaper. Nothing that Sony and Microsoft have impresses me at this point. It's all about third parties and Nintendo. Really, I plan to buy mostly third party Wii U games this year.

CericJuly 31, 2013

Honestly I think Nintendo needs to leverage the WiiU strengths.

First order of business is a $5 software upgrade to the Gamepad to make it into a true universal remote on par with a Logitech Harmony series remote.
Make TVii something worth using and living to its potential.
DLNA support.

I would court hard the Infotainment kid games and get those on the eShop.
I'll check when I get home but if the more popular online game sites don't work in the browser I probably would get them too.

#1 thing would be to stop getting Gimped/Super Late Versions of games.

Anything they do this year is meaningless without a price cut. At $300+ Wii U isn't even going to enter into the conversation for most people, families included. The console is too expensive for the low-end market, and lacks the hardware, third-party support, and game library to appeal to  the high-end market. It truly is a product for nobody but the Nintendo console faithful, who at last count were about 3.61 million worldwide.

Pixelated PixiesJuly 31, 2013

On related note, this was the year that I fell in love with my 3DS. I've had it since launch and I've had plenty of enjoyable experiences with it, but it was 2013 when it put a ring on my finger. The release schedule this year has just been phenomenal.

Luigi DudeJuly 31, 2013

Quote from: broodwars

The audience who bought those games is gone now, and Nintendo's not going to get then back. They jumped when the Kinect and IPS markets surged. You'd have to go back to GameCube numbers for a true indication of those games' potential.

Just like 3DS sales are terrible in 2011 because the audience that bought the DS has left Nintendo for smartphones and 3DS sales will remain terrible even though big games like Mario 3D Land and Mario Kart 7 are on the way.

Two Years Later

3DS - 32 million and growing

Mario 3D Land - 8.29 million and growing

Mario Kart 7 - 8.08 million and growing



Oh yes, Nintendo's audience sure left them all right. ::)

PhilPhillip Stortzum, July 31, 2013

Quote from: Luigi

Quote from: broodwars

The people who want the newest Mario & Donkey Kong already own a Wii U.

Oh so the 8 million people who bought Mario 3D Land, have already bought a Wii U for 3D World, even though their currently isn't even 8 million Wii U's sold?  Or the 5 million people who bought Donkey Kong Country Returns have already bought a Wii U for Tropical Freeze, even though 5 million Wii U's haven't been sold either?  Not to mention both games were announced at E3 which isn't even two months old yet, and something most kids and parents have no idea even exist.

Seriously, take a basic marketing class because statements like this just prove you have no fucking idea how brands and marketing actually work.

Do you always have to be condescending when someone disagrees with your point of view? It's honestly a huge turn-off.


It's my belief that people who want to experience Donkey Kong Country, Super Mario 3D World, and Zelda will just use their 3DS to do so. Those franchise happily exist on that platform, so there's no need to buy $300+ hardware just to experience franchises that they can already play for much cheaper.


How, after six years of hearing "HD development is hard, takes a lot of resources" did Nintendo not becoming fully prepared for the Wii U? It's mind-boggingly how incompetent that is. I like Satoru Iwata and his crew, but this is just imbecilic behavior that many could have foreseen. From name confusion with the Wii and Wii U, an obviously rushed launch, where many features weren't even there, and a lack of must-have games, this is pure cluster-freak of awfulness. After the 3DS and Wii U's launches, I don't think I will ever buy a Nintendo platform near launch. Somehow they ruined their third party relations even further. How is that possible?

Ian SaneJuly 31, 2013

Nintendo is the strong brand of handhelds which I feel gives it a lot more slack in the handheld market.  If you look at console generations the market leader basically gets by on being competent until they really fuck up and effectively force everyone to switch companies.  It took big changes like the N64 cartridges and the PS3's insanely high launch price to shift the market.  People WANT to buy Nintendo handhelds.  It's not about Sony luring them away but Nintendo sending them away by making a crappy product.  The market is Nintendo's until they stupidly give it away.

On the console front Nintendo is not the purchase people instinctively want to make.  Nintendo are seen as the guys with crappy third party support and casual or kiddy focused games.  With the 3DS people were looking for an excuse to buy it and once the price cut came, they had their excuse.  With the Wii U the default reaction is to ignore it.  So it isn't a matter of Nintendo at some point providing a reason to buy their console because no one but the Nintendo faithful is looking for that.  They don't care.  They need something that grabs their focus and forces them to pay attention to the Wii U.  So the approach of having a rough launch and then slowly getting your shit together doesn't work.  People were paying attention to the 3DS and waiting and hoping for it to get its shit together.  No one is doing that for the Wii U except for some Nintendo fans like myself that got burned by the Wii but ultimately want Nintendo to release a good product.

The same Nintendo franchises didn't sell Gamecubes.  Things were different on the Wii because Wii Sports forced the world to pay attention because it was this once-in-lifetime dream game that really appealed to the mainstream.  When the Gamecube got Mario and Mario Kart and Zelda it made no difference because no one was paying attention and the same franchises that were not enough to get them to go with the N64 over the Playstation also had no effect on the Gamecube.

But I suggest Nintendo not make a decision about the Wii U until after Christmas because it has a pretty good lineup of games coming out and the second Christmas really sets the tone.  Pick any console and after its second Christmas it was obvious where it was going.  By then you're over a year removed from launch and realistically you can expect the "real" games to have shown up.  After Christmas we'll know if the Wii U "pulled a 3DS".

Chad SexingtonJuly 31, 2013

I would be okay with Nintendo pulling out of the console market.


Then again, I'm a handheld only gamer these days and have been for years.


I don't own a TV and never plan to ever again.  If I can't play it on my laptop or if I can't play it on a handheld device, I'm not interested.


(Yes, I know I'm in the minority.)

Mop it upJuly 31, 2013

Quote from: broodwars

The audience who bought those games is gone now, and Nintendo's not going to get then back. They jumped when the Kinect and IPS markets surged. You'd have to go back to GameCube numbers for a true indication of those games' potential.

As for Kinect, the only Kinect game that has sold over one million copies is the game that it was bundled with (Kinect Adventures), so Kinect games aren't popular even if the device is.

There's nothing like Mario Kart on smartphones so I highly doubt that most of the 30 million + people who bought Mario Kart Wii are going to pass on Mario Kart 8.

ShyGuyJuly 31, 2013

Let's see what the Incredible Hulk has to say about the Wii U...

http://i91.photobucket.com/albums/k302/shyguy70/cosmic-hulk-vs-dr-doom-l_zpsc3f54312.jpg

But seriously, let's see how Holidays 2013 pan out.

Worst case scenario, 3DS successor (console/handheld hybrid) will be out Holiday 2015. ;)

LucarioJuly 31, 2013

Do love my 3DS, and hopefully i will get a wiiu soon!

MiyamotoJuly 31, 2013

Can this really come as that much of a surprise to anyone? I don't even know where to begin with Nintendo's problems over the last few years. Of course there will be the sycophantic Nintendo-apologists trying to make excuses. Guess what? You're part of the problem. Nintendo sites/fans need to hold Nintendo accountable every time they foul up. They need to scream and point at what Nintendo is doing wrong and what they need to do to change for the better rather than ignoring the problems and celebrating the minutest bit of news as if nothing's wrong.

LucarioJuly 31, 2013

Coming from a fraud of my most loved gamemaker! :@

ejamerJuly 31, 2013

Quote from: Ceric

...
#1 thing would be to stop getting Gimped/Super Late Versions of games.

I remember some years ago reading that Microsoft had a list of requirements for releasing games on 360. Some of the points that stuck out in my mind were: all games must have feature parity with releases on other consoles, and the game must be released on 360 either at the same time or within a very short window of being available elsewhere.


At the time I thought it sounded like tough demands - why should Microsoft dictate your business practices?  But now it makes a lot of sense and I bet Nintendo wishes they could implement a similar policy without having what little third party support remains jump ship.


(Of course Nintendo probably also needs to take a deep, hard look at what they are providing development teams to work with. Demanding feature parity is a lot easier when your console can actually support it - and I'm not just talking about using underpowered hardware but also offering improved networking support/structure and developer resources.)

paleselanJuly 31, 2013

Quote from: Luigi

Last quarter was April, May and June.  The only Wii U game released in that time was a crappy Wario Ware spinoff at the very end of June.  In comparison this Fall has a main Sonic, Donkey Kong, Mario & Sonic, 3D Mario, Wii Party, and Wii Fit.  Also Nintendo hardware always gets a huge increase during the holiday season.

Once again this is just like the original DS and 3DS.  Both systems sold like **** at first because of lack of games, but when the major titles started coming out sales increased.  Hell, for the 3DS, Mario 3D Land and Mario 3D Kart alone carried the system during the 2011 holiday in the West into the first half of 2012.  The Wii U has one of the strongest holiday lineups in Nintendo history this Fall and has Mario Kart 8 coming out in the first half of 2014.


The 3DS is currently showing that Nintendo software is still very popular.  Once the Wii U starts getting the games it'll be just fine as well.

The 3DS/DS NEVER sold this bad.

Luigi DudeJuly 31, 2013

Quote from: paleselan

The 3DS/DS NEVER sold this bad.

And that means nothing.  When the DS was selling terrible in 2005, people thought the system was doomed because the GBA never sold numbers that low.  Then when the PSP came out and was actually outselling the DS by a large margin each month, people took it as a sign Nintendo had finally lost it's handheld market and that their audience was going to move on to the PSP.  Despite the fact the DS big games hadn't been released yet and the PSP was aiming at a different demographic then Nintendo handhelds, people still declared the system was finished.

And yet when the games where finally released for the DS at the end of 2005, sales increased by a lot.  Of course, even then the sales didn't truly lite on fire and become the monster it would be until the DS Lite and New Super Mario Bros were released in Summer 2006.

So it doesn't matter if the Wii U sales are lower then any previous Nintendo system right now because the system has no current major titles and is too expensive.  Once the games come out this Fall, and the price is hopefully cut the sales will finally increase.  I don't know why this is so hard for some of you to understand?  Now if the Wii U is still selling this bad next year then yes, the system will be fucked because it means Nintendo's big titles had no effect.  But right now, it's way too early to say the system is doomed when several of their biggest franchises have yet to be released and were huge hits on their previous console and currently huge on the 3DS as well.

broodwarsJuly 31, 2013

Quote from: Luigi

So it doesn't matter if the Wii U sales are lower then any previous Nintendo system right now because the system has no current major titles and is too expensive.  Once the games come out this Fall, and the price is hopefully cut the sales will finally increase.  I don't know why this is so hard for some of you to understand?  Now if the Wii U is still selling this bad next year then yes, the system will be fucked because it means Nintendo's big titles had no effect.  But right now, it's way too early to say the system is doomed when several of their biggest franchises have yet to be released and were huge hits on their previous console and currently huge on the 3DS as well.

And people say I'M an asshole.  Sheesh.  ::)

I think you reach too far declaring the Wii's recovery an absolute just because "that's what's always happened before".  There are an awful lot of things in this industry that have failed over this past generation despite history showing that "it's always succeeded before".  I don't see any indication that Nintendo will be any different.

UncleBobRichard Cook, Guest ContributorJuly 31, 2013

I don't see him saying that the Wii U's recovery is "an absolute".  In fact, right in his post, it says things like "if the Wii U is still selling this bad next year" and "it's way too early to say the system is doomed"

Sounds like he's being cautiously optimistic.

AdrockJuly 31, 2013

I honestly think Wii U will be fine. Nintendo tried selling hardware without much compelling software. This isn't rocket science. Expecting a 3DS-like turnaround is probably being a bit too optimistic though.

CericAugust 01, 2013

The idea that the Wii U is "too expensive" is probably as much a sign then anything else.  You can probably throw a dart and find a thread where I've made the price comparison so I won't bore you here.

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