This is a dark time for Nintendo. The popular and industry reception to the announcement of the Wii U at E3 this year was not, shall we say, entirely positive. The sales of Nintendo's new handheld were not, shall we say, stellar, necessitating a price drop the Nintendo 3DS. Nintendo's stock is at a, shall we say, five-year low. All of this adds up to a loss in profits. Nintendo predicts 82 percent lower profits this fiscal year. This is, shall we say, terrible.
The company is far from broke. In spite of all the bad news, they still predict $257M in profits this year, but that's a lot less than the $1.41B it previously expected.
Nintendo says the lower profits are due to "stronger-than-expected yen appreciation and sales performance, the decided price reduction of the Nintendo 3DS hardware, and the sales outlook for the holiday season." In other words: People didn't buy the Nintendo 3DS in the numbers we would like.
So put yourself in the head of an investor for a minute. Nintendo's stock is really low right now; the question: Will it fall further, or is this the rock bottom? Do you have faith in the Wii U being a hot-seller when it launches? Do you have faith in that indefinable Nintendo magic to bring the company back to the money-printing juggernaut it was only a couple years ago? Personally, I do. I believe in Mario and company. Leave your opinion in our comment section.
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kapassikey
i still think they should release a cheap console with a dollar menu section of games... maybe a good online system for their handhelds. i'd totally buy from them more
CrackpipeSymptoms
this is terrible. ive always been a Nintendo fan and to see it in its current position makes me feel bad for them. i wish i would have spent more on Nintendo products. but i blame Nintendo for sticking with its E rated games. they should have gone with more Teen rated games for the wider appeal too older gamers. and now, i feel like they're asking for lower profits. they still wont go full HD, they dont seem to be aiming to be making new game franchises or Teen rated games, and ask for they're online, well lets just say that Super Smash Bros. Brawl is terrible to play online. why couldnt Brawl have no lag like Mario Kart Wii did. in all Nintendo needs a new, better reliable online servers. i think they should ditch the motion control concept and go for the HD with Nintendo and more T rated games and not as many E rated games.
maltesedragon
I think people need to realize that nintendo is making the right move here. They arn't focusing as much on motion gaming becuase they have realized before sony and microsoft that it isn't to the level it needs to be. And also people are going to buy this system for the games. People are going to want it for Smash Bros, for Zelda, and for those exclusive games that nintendo has. Also people need to give nintendo time to better explain the system. I mean they are going to explain it better at next years E3. So people need to lay off it
Culpa
When the 3DS's price drops, I will probably get it, and I MIGHT get Wii-U right off...
The problem they had with 3DS was not enough big titles on launch. Right now the only 2 games they have going for them are Street Fighter and OoT, but that's not enough to get an entire system.
I will be buying for Super Smash, a possible Majora's Mask reboot, Kid Icarus, and Dream Drop Distance (Kingdom Hearts). But not until I see a price drop, and see these games starting to come out.
If they want to do good with the Wii-U, make the new Super Smash Bros a launch title.
They have the potential to do better, if they would quit with the gimmicks. Wii-U has potential to go either way right now.
DPsx72
DPsx72's comment is abusive and has been removed.
chantler
Maybe this will be the wake up call for Nintendo and they will finally remember that they used to make super awesome games and will start think of new and great ways to put there long list of beloved characters in good games again.
fmaguy91
I think Nintendo should just give us New Play Control Pikmin 2 first and then bring the Operation Rainfall games to us this Holiday and they will be in better shape. Especially with Zelda on the horizon this could be a solid holiday if they just gave the fans what they wanted
Tmidiman
As an investor I would have dropped my Nintendo stock a year ago. Then I would buy it back maybe Sept. 2012. Investors don't care how much they have in the bank. It's a given that they are a conservative and thus save their money. Investors look for profit and growth, which is not happening now nor will happen until September/November NEXT YEAR!
Someone made a mistake in thinking that they would have record quarters every three months, but the chickens have com home to roost. I hope they learn from this. It's going to be a tough year for them and from this article we can see that they know it will be tough.
Pozest_Star
Nintendo's pride has cost them dearly. They need to learn that you can be innovative and still cater to the needs of today's players. They refused to go HD for Lord knows how long and now they're not supporting Bluray, which I think is going to sound their death knell. They should also start stronger when their consoles are released. Release a Zelda or Metroid game instead of the 97th version of Wii Fit.
JWhite
From a business standpoint, and after the sales of the 3DS were "unexpectedly low" (to Nintendo), I expected an announcement at E3 about hardware that would mark a return of hardcore gaming to the Nintendo name. Both of my parents own a Wii, but neither of them is the type to run out and buy a new system just because it's slightly upgraded. Most casual gamers will skip the Wii U because they already own a Wii and can't justify spending extra money on something that's a novelty to them. With the 3DS having the trouble that it's had so far, the only possible savior for Nintendo that I can see is if the Wii U provides what hardcore gamers are looking for. If it's just a system of gimmicks like taking the game off your TV to play on the controller's screen, then I think we're watching the end of Nintendo.
I certainly didn't buy a 47" 1080p flatscreen so my girlfriend could watch "Say Yes to the Dress" while I played video games in my lap. My handhelds are for road trips and when work is slow, not for gaming at home. If there's more substance to the Wii U than this, I'll be excited. Until then, shall we say, "sell sell sell."
Wrathofsauron
Off topic, but i need to say it anyway. People look very stupid when they abbreviate Microsoft at M$. You could call Sony $ony, or Adam Sessler Adam $e$$ler. If you want to call sombeboy greedy, don't say it though elementary school nicknames and insults. You weaken your own argument.
Wrathofsauron
If i was an investor, i would have been furious about them giving the WiiU that horrible name. I would have been furious about them marketing the WiiU to hardcore gamers while refusing to localize 3 key wii titles, thereby eroding trust that gamers have in nintendo's hardcore potential. I would have been furious about them charging 250$ for the 3ds when nobody was impressed with the 3d and alienating consumers. If i was an investor, i would have jumped ship by now.
chaos345
I don't think that Nintendo may make a comeback anytime soon, since they have just dropped the price of the 3DS not long after it was released proves the fact that they aren't doing too well in the sales. As for the Wii U they may do the same thing as they did with the Wii, where they bring out a ton of casual games to get a bigger audience (this isn't a bad strategy, but what they did wrong there is that they focused TOO much on the casual gamers that they brought out too many casual games that lost the focus of many if not all of the hardcore gamers. Because what they did is expect to get more money if more people bought their games, but what they didn't expect was that they are losing more money because they are appealing to people who don't buy or play many video games in the first place. So what I think that they need to do if they want to come back strong as they were a few years back is to tone down the casual games and bring in more of the hadcore stuff.
lowkevmic
In order for Nintendo to get back into fighting form they would have to first get off of their high horse, and except the reality that the game industry has changes and they aren't the only game in town anymore(pun intended).
Next they will have to go right back to the drawing board and re-formulate a strategy that will put them back on top, or at least in close competition with Sony and Microsoft. The idea of the Wii was a great novelty idea at first, but they were more focused on the idea of motion gaming and not really on core gaming or the longevity of their great idea.
Finally Nintendo will need a complete and total makeover. New console, new games, new everything. The saying "If it ain't broke don't fix it" doesn't really work in an industry that is constantly changing every few months. They need to reintroduce Nintendo to a new generation of gamers instead of ride this wave of nostalgia that they've been getting away with for so many years. Mario and Kirby doesn't seem so appealing to new gamers when placed up against Marcus Fenix and Kratos.
Gamers want HD, online multiplayer, core gaming mechanics, innovative graphics, and captivating storylines. We already played the games where we have to save the princess a million times with Nintendo, and quite frankly the people are tired of the same ol song and dance from Nintendo. So unless they think of rebranding their company, their fate will be similar to SEGA where the new kid on the block pushes them out into a world of just game development. If that happens we could at least look forward to playing Legend of Zelda on the Xbox or PS3.
oBlpoZim
You've met with a terrible fate.
permanent_nirvana
Didn't the same thing happen to Sega?
AngmarianSoul
Creating the Wii U instead of a console people actually want was a big mistake...but that's all I'll say on the matter
DBJAY
Investing wise, I would expec the stock to go even lower in Oct/Nov. But, then get a bump up in Jan/Feb 12 as news of their Christmas sales comes out. The Wii may kind of be sluggish in sales, but Nintendo has been historically strong during the Christmas season.
teac77
Nintendo's projections were off. So they went to church, and confessed.
Blue_Vortex
Nintendo of America I think is the biggest problem currently, out of all the sections of Nintendo they're the ones that turned their back on the core gamer. There's 5 games (possibly a lot more) I'm sure a lot of people who support Nintendo would have loved to play that they refused to bring over.
As for the 3DS seeing the price drop is a clear indication that they over priced it to begin with (that and should have released it with more compelling software). I don't regret getting a 3DS but I think I'll be hesitant on buying a WiiU (I need to see if they'll actually bring more games I'm interested in over).
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