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[JordanN]

Yamauchi should've done a better job with the N64 and Gamecube.

Gamecube was mostly Iwata's doing. Yamauchi only helped design the system at that point.

 

[Concept17]

Time for new hardware. Drop the Wii U already. Drop the 'Wii' all together. It's time for a new product that is neither Wii nor DS.

 

[.Anema]

Holy shit Ninty WTF are you doing

 

[enzo_gt]

Is anybody really surprised? Honest question.

Iwata has been saying "let's wait it out. One game can change everything" all year. Meanwhile, back at the ranch, the sales of the Wii U (and Wii U software) have been in the toilet. since. launch.

This should come as a surprise to absolutely nobody.

Nintendo needs a major shake-up at this point. They needed one ages ago, but now the writing is on the wall. There is no recovery to be had by staying the course. It's time for heads to roll.

There are still people who won't cross out SM3DW on the blackboard. Primarily cause they don't see the problem going deeper than just games > everything. The device is just so antiquated in some respects, and outclassed and better served in all the others.

Put all your chips into a gimmick attempting to generate interest whilst that functionality is done better at competitive prices. Sounds like a good idea to them still I'd imagine.

Wii U needs an exit strategy.

 

[Anth0ny]

Shocking news.

Nintendo expects 2.8 million Wii-U sales down from 9 million

 

[cafemomo]

Time for new hardware. Drop the Wii U already. Drop the 'Wii' all together. It's time for a new product that is neither Wii nor DS.

Doing that will put them in a more worse position

 

[Busaiku]

They don't have enough cash to do that at their current valuation unless they're willing to take on around 4-6 billion in debt to do it.

Clearly their goal is to lower their worth as much as possible and buy everything.

 

[mechphree]

See? That's the problem.

I would say they need a person who understands the American market NOW and isn't trying techniques that only worked in the 90s. In my opinion , Nintendos biggest problem is it's just been out of touch with its consumers. It seems they don't understand the current market anymore and a change in leadership to some one who does would be a good thing. Otherwise, they might as well just only put out handheld hardware and stop trying to sell consoles.

 

[nikatapi]

Well, that was expected. Their forecasts were so optimistic and out of touch.

Probably banking on Wii Fit U and SM3DW to save the WiiU. But with such shitty marketing there is still so much consumer confusion, people still don't have a clue about the console.

I really like Iwata, but the whole "let's make a console that mum's wouldn't mind having in the living room" attitude must change.

 

[Sandfox]

Gamecube was mostly Iwata's doing. Yamuachi only helped design the system at that point.

I would argue that the momentum from the previous gen and gamecube's design were it's biggest problems.

 

[Ivan el Trolazo]

nintendophone...(clam case/controller for iphone 5)

 

[Mihael Mello Keehl]

Thats what happens when you have a whole year dedicated to luigi.

 

[metalslimer]

The most damning thing is that the wiiu wiped out 3ds profits. Nintendo is fucked for a few years. Also the 3ds is declining in what should be banner yeaslrs and will only go lower. The entire situation is terrible. Konno anr iwata have to go

 

[tarheel91]

Do people realize how much money this actually is, or are they being thrown off by the billions being tossed around? 550mil to (250) mil is big, but it's not even close to the end of the world for Nintendo. They could lose that much for decades upon decades and still be fine. Pretty sure their war chest is $20 billion+.

 

[Randolph Freelander]

Wait, how is 3DS down that much? Everyone owns one? But didn't Pokemon just launch?

Say it with me.... "mobile."

3DS hasn't been selling well. While we're still waiting on this quarter, each of the previous 4 quarters have been down YOY, and the yearly sums haven't been spectacular.

 

[Shiggy]

Wait, how is 3DS down that much? Everyone owns one? But didn't Pokemon just launch?

Perhaps because all they do is releasing somewhat uninspired sequels for an audience which already has the system? At least I did my part and bought one right before Xmas.

 

[Striek]

Wait, how is 3DS down that much? Everyone owns one? But didn't Pokemon just launch?

I hear phones are pretty popular.

3DS will be down next year and struggle to be relevant in 2016, going to be very hard to market a new handheld (let alone a new console) for Nintendo by then.

 

[Crash Station]

How does Iwata exactly care about games?

This is why:

Happy Birthday Iwata!

I don't care what they say about you, anyone
who thinks good content is worth money,
who can say no to the temptations of crappy DLC,
who thinks subscriptions are not a good idea,
who can delay a bad game to make it good even under pressure,
who has actually made a worthwhile game,
who believes physical and digital mediums can coexist,
who believes in promoting positive images of gaming for all ages and genders,
who thinks gaming can train your mind and your body.
who can host a video program better than Spike,
who can do a better interview than IGN,
who make an reasonable, intelligent and fact-based argument when your shareholders ask stupid questions,
who will do things even though nobody else is,
who believes that, in the end, what matters is the games and how fun they are
has to be a pretty awesome CEO.

 

[jedimike]

Few may agree with me, but I believe this is a result of losing Rare. The effect had a long tail due to the overwhelming success of the Wii, but ultimately Nintendo is seeing franchise burnout and that's where Rare could have provided some much needed variety.

 

[Aaron Strife]

Iwata...I don't see it working out for him.

He should announce that he is stepping back into software, maybe as the head of world-wide studios. Continue to be the public face of Nintendo, since he's very good at it.

And then put out the call for a new CEO. Maybe he can help choose. From his big corner office with the big window...

On one hand I'm worried that choosing someone with an American business perspective (like Reggie) will compromise some of the company's core values.

On the other those core values are actively inhibiting the console from succeeding elsewhere.

Wii U was produced in a bubble. As was 3DS. Wii and DS had gimmicks but they were novel and cheap enough to launch immediately at a mass market entry point, and the software better exploited their functionality. I love both systems but imagine Wii U launching at 250 with a more traditional control scheme and graphics much better than the previous gen, even if not quite up to par with PS4 or Xbox One. Or 3DS launching at 129. 2DS is selling like illegal fireworks on the Fourth of July.

 

[theprodigy]

So we all end up with another xbox one? No thanks

Nintendo wishes the Wii U was like Xbox One

 

[Pooya]

Iwata was just buying himself time by promising too much, well time's up now.
Pretty much what happened to Wada last year.

 

[Aquamarine]

Remember, these new guidances have the previous LTD built in.

So Wii U went from:

9 million prediction + 3.45 million LTD = 12.45 million LTD as of March 31st, 2014

to:

2.8 million prediction + 3.45 million LTD = 6.25 million LTD as of March 31st, 2014

 

[Horseticuffs]

At least now Wii U will be in the news.

I love it when a plan comes together...

 

[Cheerilee]

Fire everywhere.

Jesus Christ.

"Guys, remember when we said we were going to make 55B Yen in profit? Well, we're not only going to make even half of that, or, well, any of it, but we're actually going to lose 25B Yen. Oops."

Did Wii U hardware NPD numbers come to light? Did they even hit 400k?

Around 480k, apparently.

They set a new record...

 

[786110]

I personally blame Luigi.

 

[Cheesemeister]

Might want to fix the OP/subject, as the report indicates an operating income forecast of -35 billion yen, not -25 billion yen.

http://www.nintendo.co.jp/ir/pdf/2014/140117e.pdf

 

[soundscream]

I wouldn't call that "understanding". We all saw all the heat Microsoft got for the Xbox One and they reversed their DRM. USA is Nintendo's biggest market, they should stop catering to Japan so much and cater to us for once by giving us better online functionality and more multimedia options. At least give us what PS3 and Xbox 360 have.

But they allegedly don't have anyone who uses live or psn.

 

[GamerSoul]

Yes sadly. Tis a harsh reality.

Wow, it's not looking too good. I thought the 3DS was at least keeping them in decent shape but that forecast..

 

[ArchedThunder]

Time for some big changes at Nintendo...

 

[Uncle Rupee]

Big changes have to happen. Nintendo has to go all out for the Wii U this year and try to cut their losses. This is it.

They are already "going all out". They simply can't push games out the door fast enough because they weren't ready for HD development.

More than likely Nintendo will just keep doing what Nintendo always has; plugging along in its own little universe. They'll release four or five games a year on the Wii U, maybe do some more partnerships with third parties (like the upcoming Zelda Musou), biding their time before they can reset with a new generation.

 

[ghst]

i should've never bought my gamecube second hand.

i can't help but feel responsible.

 

[legend166]

Iwata has to go.

I just hope his successor manages to bring Nintendo into the 21st century whilst not completely abandoning what makes them a great and unique company in the industry (when they are not acting like complete morons).

 

[mechphree]

There are still people who won't cross out SM3DW on the blackboard. Primarily cause they don't see the problem going deeper than just games > everything. The device is just so antiquated in some respects, and outclassed and better served in all the others.

Put all your chips into a gimmick attempting to generate interest whilst that functionality is done better at competitive prices. Sounds like a good idea to them still I'd imagine.

Wii U needs an exit strategy.

They can afford the WiiU to fail though . Hell they could afford another console to fail. What they really need is a change in direction.

 

[Musolf815]

Not even that. While they were still in the Yamauchi era of scaring 3rd parties, Nintendo had a really competent western front for a while. Iwata pretty much put an end to that.

Has he ever given any reason for putting an end to it? It just doesn't make any sense to me, I can't see what benefit it would have.

 

[SwiftDeath]

Well deserved.

lol

Might want to fix the OP/subject, as the report indicates an operating income forecast of -35 billion yen, not -25 billion yen.

http://www.nintendo.co.jp/ir/pdf/2014/140117e.pdf

Wow so projections just fell 860 million USD then?

 

[Effect]

The original Wii U forecast was never realistic. Especially when it was clear Nintendo was never going to be doing anything to even try to reach that number. Their inaction over the entire year showed that. I still don't understand why it was tossed out there in the first place.

 

[LOCK]

Wow, this is a first for them isn't it? I've never known them to revise FY forecast before a quarterly report.

Hopefully fire has been lit under Iwatas feet.

I think at this point we can probably consider the 2DS a failure, at least short term.

 

[Randolph Freelander]

Do people realize how much money this actually is, or are they being thrown off by the billions being tossed around? 550mil to (250) mil is big, but it's not even close to the end of the world for Nintendo. They could lose that much for decades upon decades and still be fine. Pretty sure their war chest is $20 billion+.

You're just wrong. First, they couldn't do this for decades even if they had the money, because that's not how business works, investors would not allow it. Second, they have something like 8 billion in cash and short term investments, the company itself isn't even worth 20 billion.

 

[1st Course]

So in essence Nintendo just dropped their forecast more than 750 million USD?

Way more than that.

Previous forecast: 920B yen revenue
Current forecast: 590B yen revenue
Difference: -330B yen revenue ($3.2B)

http://www.nintendo.co.jp/ir/pdf/2014/140117e.pdf

 

[Cosmo Clock 21]

Oh the Nikkei closes at 3pm JST. Guess we don't get to watch the stock price dive in real time.

 

[rjcc]

Nintendo

http://youtu.be/r4ONlM6TbnE?t=20s

9 million to 2.8? they think the Wii U is over

 

[Zalman]

Few may agree with me, but I believe this is a result of losing Rare. The effect had a long tail due to the overwhelming success of the Wii, but ultimately Nintendo is seeing franchise burnout and that's where Rare could have provided some much needed variety.

It's not like the N64 was the most succesful thing ever.

 

[coolasj19]

There will be change. What change? Some kind of change. I dunno, if I was any Nintendo exec I'd be waking up sweating every night, maybe even having panic attacks. That's what this is worthy of.

 

[DragonSworne]

This is why:

Who designs a system that repels game development? Who designs a system that discourages family friendly fun and promotes isolation? Who designs a system that punishes owners of digital content for losing or breaking their system?

 

[Nirolak]

Might want to fix the OP/subject, as the report indicates an operating income forecast of -35 billion yen, not -25 billion yen.

http://www.nintendo.co.jp/ir/pdf/2014/140117e.pdf

Fixed, thank you.

 

[casinoman921]

Nintendo's finally realized the 3DS ain't selling DS numbers. We're going back to the norm.

 

[Hurley]

 

[MisterHero]

That has to be one of the worst misses in the history books for a major public company. Just astounding that they kept their ridiculous forecasts until the bitter end.

Heads will roll.

Spoiler

Well maybe not, because...Nintendo.

Yeah, a $250 million loss is a comparible to being in debt for billions over a period of years.

Nintendo screwed both launches for the 3DS and Wii U. Let's have a little perspective though.

 

[megamerican]

They need new leadership. Sony had much less of a problem with the PS3 and even then they got new blood in there very quickly.