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

Let's ignore Sony and the PS4. That sounds like a great plan... or omission on your part.

who would replace him?

Anyone who understands the global gaming industry better and knows when to tell NCL to get their shit in order.

By understanding the global gaming industry I mean someone who would actually give NOA and NOE the power to develop and market software far more extensively than they do now.

 

[ash_ag]

Over the past 30 years, Nintendo has faced a grand total of two losses, both of which were under Iwata's reign. It's time for him to leave.

Under Iwata Nintendo also lived their most successful years (and made enough profit to balance out those two losses). Perhaps it is time for changes in Nintendo's policy and hierarchy, but let's not jump ahead of ourselves.

 

[Crash Station]

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

Let's hope if Iwata does get replaced, it isn't someone worse like Wada's replacement.

 

[metalslimer]

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

How in the world is wiiu losing so much. How can they be that incompetent

 

[Nirolak]

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

So far they've actually lowered the 3DS every year of its existence, usually by a fair amount.

It's just that the lowering still left it in an acceptable position, as opposed to the Wii U which was generally left in a terrible position.

 

[drgambit]

You get the idea...

 

[ComputerMKII]

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.

This.

 

[Warm Machine]

Doing that will put them in a more worse position

By keeping it going they will then lose money on every game they develop on the console. Have you seen the Pikmin 3 and W101 numbers?

 

[AHA-Lambda]

holy shit, that's huge! more in line with reality, but man that drop! :O

 

[Omzz]

It really makes no sense to drop the Wii U with only a year after it's release. They need to recoup as much as they can from it and if anything start a new gen earlier or even all together head in another direction.

That being said this is fucked to lower your forecast so much. Or just another way of making it seem positive by saying "hey we beat our forecast"! Things DESPERATELY need to change instead of the mantra "software drives install base". That is true, but there is even a bigger issue at hand preventing the Wii U from succeeding. They simply can't rely on their Nintendo first party games anymore no matter how amazing they are. I love my Wii U, but this performance has been pathetic.

 

[Prompto]

I just don't get why they forecasted sales to be so impossibly high in the first place.

 

[1st Course]

For the new page:

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

 

[Sakura]

I love the scenario they're painting here with the Wii U. The come back will be historical.

 

[Banjotanooki]

Soooo...is now a bad time to get a Wii U? Is it even going to be relevant anymore?

 

[Aaron Strife]

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

N64 did very well in the US. Its lifetime sales only slightly trailed the Genesis and SNES.

Of course it doesn't compare to the goliath that was the PS1 but it was definitely helped by its exclusives here.

 

[ffdgh]

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....wii u what have you done.

 

[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

Wait I think we're mixing net and operating in the title now.

 

[SolidSnakex]

given the years they had sitting with the wii and ds you'd think they'd try to make the virtual console into a really great feature instead of yet another thing they don't understand.

my guess is that there's concern that people wouldn't want 2d mario for their consoles when they could play the first game on their phones for a dollar.

I think it's that combined with the fear that if they start putting games on phones then people may get the feeling that all of their games will be released on phones and just stop buying their systems and software altogether. But I don't think that'd happen. We've seen Japanese third parties putting their old games on phones for a long time now and their mainline console and handheld offering still sell a lot. They seem to just view it the same way I do, as a way to make a lot of money with little effort while they continue to make the newer games for handhelds and consoles.

It's something that in the grand scheme of things will only be beneficial to them. And there's a chance that it may even draw people to their platforms instead of away. Create an account system for the 3DS, Wii U, and mobile where buying a single copy of Super Mario Bros. will allow you to play it on all three platforms. So, they may have a situation where someone buys some of their games to play on their phone when they're away from home, but picks up a Wii U to play it when they are home as well as a way to play the newer entries of those games.

 

[Striek]

Fixed, thank you.

Mixing net profit and operating profit (loss) in title now though. They've gone from 100B yen profit to -35B yen loss forecast. And tbh operating profit is the more important figure.

Edit: Too late!

 

[vinnygambini]

Investors meeting to look forward to as I don't know what's going to happen, maybe another bomb alert?

On a more serious note, I don't know how Iwata is going to talk this one out.

 

[7DollarHagane]

It really is disheartening seeing this considering almost all of what they put out this year was very well received and they even did some riskier moves like a big push for Fire Emblem Awakening, and putting out Earthbound.

Then you look at the NPD top 10 for December and I think, do I really want Nintendo to chase that standard? Over what they're doing now?

Not at all. Modern War game, Dance Game, Sports Game, numbers 4 and 5 of long running open world franchise, licensed kids lego game, skylanders.

Skylanders is the only one that makes sense, doing a Pokemon game that uses the skylanders figurine thing could do very well for them.

I honestly think I'd rather see nintendo keep on doing what they do best and try to cut their costs and expenses than have them cater to what's popular these days in the market.

And never phones. I would rather they closed up shop than see nintendo putting anything but marketing efforts on phones/tablets.

 

[Anth0ny]

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

 

[JABEE]

This is bad, bad news. Everyone knew it was coming, but to see it in an official release is really bad. There has to be huge changes in Nintendo's strategies in the coming year.

I think they have two options. 1. Milk the WiiU and move their major projects to its successor, or 2. Continue the transition away from the home console space.

I don't know what space they can transition to and be the same company they once were.

It makes me sad to type that, but I don't know what they're going to do.

 

[Canon]

Soooo...is now a bad time to get a Wii U? Is it even going to be relevant anymore?

It isn't going to stop any of the announced games from coming out, so if you intend to get Smash Bros. or Zelda or Mario or any of the upcoming games you're going to need one regardless of how much profit a company makes.

 

[cafemomo]

By keeping it going they will then lose money on every game they develop on the console. Have you seen the Pikmin 3 and W101 numbers?

Abandoning the WiiU this early in it's lifecycle is a horrid decision. They will need to ride it out no matter how shitty it's situation and hardware is

Abandoning it will make the public even loose more confidence in Nintendo.

 

[watershed]

Damn that is a huge difference. Nintendo needs to do something big and soon. This isn't one of those situations that can be fixed by a "steady release of software". Time for some major partnerships or new hardware.

 

[Aquamarine]

Investors meeting to look forward to as I don't know what's going to happen, maybe another bomb alert?

On a more serious note, I don't know how Iwata is going to talk this one out.

Neither do I.

Investors are going to be furious if Iwata says little other than "We're staying the course. Please understand."

 

[AniHawk]

i suggested this in the media create thread, but i wonder if nintendo could have two handheld lines. one would essentially by a hybrid and hook up to the tv. essentially a gamepad you can take with you. somehow get it out for $200 (wii u level graphics, more tablet-y).

the other one would be an inexpensive one. it'd be smaller and have games that require much smaller teams. a $100 device with $20 games at retail and a $200 device with $50 games at retail. the two would interact with each other somehow and both be out by the end of 2016.

i think they're right to aim for the family market, but software prices are awful. they could bring the game boy name back for the smaller one too, since it doesn't have the confusion (and maybe disinterest) that ds does.

also, the virtual console should be an actual thing that's supported by an decently sized internal team, working on and releasing roms on a steady schedule.

 

[Hiltz]

Here's hoping investors ask some important questions to Iwata during the meeting at he end of the month. Iwata certainly has some explaining to do.

 

[FullMetalx117]

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

I'll be honest... who in the world over the age of 12 wants to be caught dead with a nintendo phone? If they made it sexy like the iphone then yeah maybe but knowing Nintendo they will probably not do that. Nintendo just has too much of that "kiddie" perception.

 

[afoni]

The company needed a shock, but I don't like seeing these numbers. Hopefully they do something so I'm not sitting here with another Dreamcast.

 

[Phatmac]

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.

They have to keep making stronger third party relationships and hire more OS/internet people and fire the old guard that hasn't put Nintendo's consoles in the modern times. They Must expand their NA offices and do a Sony by letting them be in charge while letting .Japan develop new games. They must make huge pleas to small indie devs and convince them to support Nintendo consoles. If EA and others won't support them than go for the indies. Nintendo has to improve their internet networks quickly. That's the future.

 

[Horseticuffs]

Investors meeting to look forward to as I don't know what's going to happen, maybe another bomb alert?

On a more serious note, I don't know how Iwata is going to talk this one out.

I think you may be onto something here...

Spoiler

Iwata will literally call in a bomb threat prior to the investment meeting. Pretty sneaky, senpai!...

 

[metalslimer]

This is just incomprehensible to me looking from the outside. So not only did the Wii U lose money to the tune of 25 billion yen, but at the same time it would have had to wipe out every profit from the 3DS all its software and Wii U software. Either Nintendo are ramping up development on a new system or Wii U is losing way more money than we ever thought.

 

[Crimsonlink]

2.8m Wii-U shipment forecast, down from 9m. That'll do it.

So they haven't even SOLD/SHIPPED 2.8m Wii-Us? O_O!

 

[Nirolak]

 

[soundscream]

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.

Buy off Cerny!

He made a powerful box that didn't cost an arm & a leg.

Make him an offer he cant refuse.

 

[botty]

The Wii U's fate was sealed at e3 2013 when it was revealed that Kingdom Hearts 3 and Final Fantasy XV would be skipping Wii U in favor of the PS4 and even the Xbox One. How do you secure Kingdom Hearts 3D for your handheld, but not KH3, which was arguably the most hyped up game reveal since Zelda Twilight Princess. If I was Iwata, I would be trying to fund down ports of those key titles which are definitely going to be commercial darlings. You don't need all 3rd Party support, Nintendo. Just the ones that matter most. But, again, it's too late.

My Wii U will be used for Smash Bros, Mario Kart, and whatever other quirky games they deliver, until the next gen. But I feel like Sony has already won my time and attention.

 

[Rhindle]

They have to come up with a major strategy shift to announce with the official earnings release.

It would be unprecedented for a company to perform this disastrously, and just continue with business as usual.

 

[Randolph Freelander]

Here's hoping investors ask some important questions to Iwata during the meeting at he end of the month. Iwata certainly has some explaining to do.

They'll probably begin and end by asking for his resignation.

 

[GamerSoul]

This is one of the greatest reaction gifs I've seen
I'm in tears.

 

[Clawww]

Video games. Serious business. But actually.

damn yo

 

[Chittagong]

Soooo...is now a bad time to get a Wii U? Is it even going to be relevant anymore?

there's a bunch of great first party games available for it and a couple of more to come. If you approach it with only that expectation it's a pretty enjoyable box.

 

[Tagg9]

How in the world is wiiu losing so much. How can they be that incompetent

I suspect they've been selling Wii U at a loss for the past several months. There have been numerous sales in Canada where you could buy it for ~$200 (usually bundled with one or more games).

 

[Nirolak]

So they haven't even SOLD/SHIPPED 2.8m Wii-Us? O_O!

Correct, that's the forecast until the end of March. In theory they could miss it.

 

[tarheel91]

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.

I'm not talking about investors, I'm talking about going bankrupt. People are acting like the sky is falling. I definitely mixed up their short term assets, but the point still stands: 8billion/.25= 32 years. Obviously they're not just going to do nothing, and no one expects them too. I was just trying to give some context to what $250 million means to Nintendo.

 

[Duxxy3]

Soooo...is now a bad time to get a Wii U? Is it even going to be relevant anymore?

I would not buy one until we hear from Iwata about he intends to fix this.

The priority should be moving hardware off of shelves that has been sitting there for months.

 

[theprodigy]

25 billion to 35 billion back to 25 billion
make up your minds OP/mods

(yes I realize Nirolak cleared it up lol)

 

[Shikamaru Ninja]

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.

Are you serious? A logical argument might be Nintendo catering more to the western market or producing more western developed games, but equating rare as the lone answer to this dilemma is ludicrous. Asinine really.

Their main problem is a much bigger issue than your resolution attempts to solve.

 

[CoffeeJanitor]

That's a big loss.

Who takes the blame?

Current leadership. That would happen in a rational world, at least.