Nintendo to post lowered sales forecast as Wii U falters

Discussion in 'User Submitted News' started by Qtis, Jan 30, 2013.

  1. Qtis
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    Member Qtis Grey Knight Inquisitor

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    High expectations for the Wii U sales has led Nintendo to believe it will make an operating profit of roughly $130 million during this fiscal year. Due to unexpectedly low sales of the Wii successor, the operating profit has turned to a loss of roughly $220 million in its core business.

    EDIT: Nintendo expects to have a positive net income of ~$160 due to depreciation of the Yen among other things, but the core sections are expected to still be making operating loss.

    [​IMG]Source via Reuters

    [​IMG]Source via Eurogamer

    Thoughts? Was this really unexpected or was Nintendo too optimistic? Personally I think this is not really surprising due to many factors including the change in gaming (tablets, Phones, etc), but I do expect Nintendo to start making operating profit during the next year or so. Same problems seem to be happening for Sony and Microsoft.
     


  2. EyeZ

    Member EyeZ GBAtemp Addict

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    I think it's a sign of the times, as in the the financial situation all countries are now in, people are either more cautious with their money or they haven't got that surplus of money now.
     
  3. TheFinalMaster

    Newcomer TheFinalMaster Bob Ross

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    I am unsurprised; my interest in Nintendo has been dwindling ever since I got a 360. Following skyward sword and other m fans would be do right to be cautious when it comes to jumping back in until a more promising entry for their bigger franchises.
     
  4. indask8

    Member indask8 New Member Forever

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    I don't think its the main reason, but seeing how Nintendo released the WiiU with a buggy rushed firmware (no, the 2.0 version doesn't fix everything) and they said the next update will be release in spring (when that kind of issue should be fixed within a week if you're a SERIOUS company).

    They get what they deserved, they're 100% responsible of the situation.

    And that's sad because I like my WiiU.
     
  5. Saturnplanet5

    Member Saturnplanet5 GBAtemp Advanced Fan

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    Who would have thunk it? Releasing last year's games on a new console. Maybe a ZELDA game might save it.
     
  6. Peps

    Member Peps GBAtemp Regular

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    It's just more of the "Nintendo is doomed" nonsense that we keep seeing all of the time, and that time and time again it's always incorrect.

    It's expected for Nintendo to make a loss this year, considering they've just made a huge investment into creating a new console. Like most risks, it takes a while before the losses turn into profit. As the article says, Nintendo is confident that their turnover will revert back to profit in the next business year, which again is expected because that's the nature of investments.

    I don't really see the significance of their estimates being slightly off. Just think about it, they're still selling millions of consoles, and the console was only released a couple of months ago. That's a huge success and it's still something the majority of start-ups rarely see.
     
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  7. emigre

    Member emigre Has complex motives

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    Did anyone mention Nintendo are doomed yet? Cuz they are doomed.
     
  8. ReBirFh

    Newcomer ReBirFh Advanced Member

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    Nintendo was too optimistic, for a long time Nintendo has been depending on Mario to sell (not for the lack of big franchises on it's belt) it failed to migrate Wii owners to WiiU and failed to get the "Hardcore" crowd because they already had the games they wanted on the othe other consoles.
     
  9. Gnargle

    Member Gnargle The day I set a profile picture is the day I die

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    What? No, Nintendo are back to making a profit: http://www.eurogamer.net/articles/2...s-console-having-a-negative-impact-on-profits

    '"Owing to the fact that the Wii U hardware sales have a negative impact on Nintendo's profits, the operating loss was 5.8 billion yen," Nintendo said. "As a result of exchange gains totaling 22.2 billion yen due to the depreciation of the yen at the end of calendar year 2012, however, ordinary income was 22.7 billion yen and net income was 14.5 billion yen."'
     
  10. Valwin

    Banned Valwin The Neautral Gamer

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    Such things are to be expected.

    There are no games releases for January and February; that is why they did that last Nintendo direct to show the games, something they didn't do since its release.


    Like all past consoles you have to wait a year to know, come holiday 2013 we will know if it counts as a flop or not.

    For example take the vita holiday 2012, there we found out it flopped and is dead but it took a year to be sure.

    also sales topic o boy
     
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  11. Ethevion

    Member Ethevion Wannabe Artist

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    It's too early for the WiiU to make a profit. Give it some time and the money will rise, but I agree that Nintendo was too optimistic with their numbers.
     
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  12. Qtis
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    Member Qtis Grey Knight Inquisitor

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    Not a sales topic, a financial topic. There is a difference in reporting how much x sold versus how a company is doing on the long run. If operating profit is a loss, it's not a good sign on the long run.

    While Nintendo expects a profit for the year, it's not due to its own operations. Instead, the Japanese government's measures to affect the price of the yen and "clever accounting by Nintendo" saved Nintendo's total profit.
     
  13. Bladexdsl

    Member Bladexdsl ZOMG my posts...it's over 9000!!!

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    Well that's what you get for releasing it with NO games. I won't be getting one 'till at least Windwaker HD or unless X comes out before it; they're the ONLY 2 games I'm interested in ATM (new zelda is still a while away).
     
  14. Guild McCommunist

    Member Guild McCommunist (not on boat)

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    IRONY.
     
  15. Its_just_Lou

    Member Its_just_Lou GBAtemp Regular

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    "From KING of the block to teatray and dildo-like controllers: Whut up with dat, Big N?"

    (Just a working title, mind...)
     
  16. heartgold

    Member heartgold GBAtemp Psycho!

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    This thread sucks. why was mine deleted. They made profit, not a loss.
    Need to close this misleading thread.

    They have posted a 160M net profit.
     
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  17. Qtis
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    Member Qtis Grey Knight Inquisitor

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    It's not misleading.. Read the financial report. Nintendo made overall profit, but has an operating loss. In other words it's core features (software and hardware) are making a loss, while the company as a whole is making a profit not due to market performance, but financial performance in other sections.
     
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  18. Guild McCommunist

    Member Guild McCommunist (not on boat)

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    But compared to their sales forecast it's a significant loss.
     
  19. heartgold

    Member heartgold GBAtemp Psycho!

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    At least expand your news. like post sales of other Nintendo consoles, state net profit in your title.
     
  20. Valwin

    Banned Valwin The Neautral Gamer

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    this is a very misleading topic in fact i just read it and i am surprise mods a letting you post this sales topic

    god forbids Valwin post one
     
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