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Nintendo Cuts Profit Forecast 70Pct Ahead of Wii U Release

By - Source: The Telegraph | B 26 comments

The Wii U cannot arrive too soon. Nintendo has just slashed its profit expectations for the full year by 70 percent, and even this number may be a bit optimistic.

Nintendo said that it now expects a net profit of about $75.2 million for this fiscal year (which ends in march 2013), up from a $350.8 million loss in fiscal 2011. However, the new forecast is down from an original forecast of a profit of $250.5 million for the year.

The reduction is mainly due to a lowered shipment volume for the 3DS from 18.5 to 17.5 million units. Nintendo said it shipped more than 5 million 3DS devices in the second and third calendar quarter of this year. The Wii continues to decline much faster than originally planned as the company sold only 1.3 million consoles in Q2 and Q3, which was blamed on a lack of compelling game releases. For the full year, Nintendo now expects the Wii to sell only 5 million units, down from a forecast of 10.5 million half a year ago.

The savior might be the Wii U, which company believes will sell 5.5 million units until the end of March. The company indicated that the console is aggressively priced and will sell at a loss for Nintendo initially. The profits are therefore mainly in software sales: Nintendo believes it can sell every Wii U customer about four games - or 24 million copies in total. Given its history, this is a rather optimistic goal and will depend on a strong third-party lineup for the Wii U ecosystem. There is not much room for failure.

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  • 5 Hide
    ikyung , October 24, 2012 11:11 PM
    Well, I'll probably get it just because they have Pikmin 3, Monster Hunter 3 and Bayonetta 2.. but, still on the fence about this console..
  • 0 Hide
    thecolorblue , October 24, 2012 11:16 PM
    Consoles suck...

    just sayin'
  • 0 Hide
    giovanni86 , October 24, 2012 11:18 PM
    I have a friend who's a die hard fan of Nintendo, and for the first time he's going to actually wait and see if its worth it. After all the Wii was just a short thrill. For myself i will be letting my PC handle my gaming life after all the Wii U is just a small upgrade in terms of hardware and in all reality i just hate the idea behind the tablet thing becoming a part of the game. Didn't spend 2k on a tv to watch part of the game on a small tablet. But minus my hate towards it, i hope they do well to encourage Xbox and Sony to get off there chairs and pump out a new console so better ports come out for the PC to utilize the hardware we've already had for well over half a decade.
  • Display all 26 comments.
  • 2 Hide
    julianbautista87 , October 24, 2012 11:21 PM
    if they make another mario galaxy, or another pikmin, or another DK country returns, I'm in.
  • -4 Hide
    back_by_demand , October 24, 2012 11:28 PM
    julianbautista87if they make another mario galaxy, or another pikmin, or another DK country returns, I'm in.

    What the world really needs is the 473rd installment of yet another Mario game, because we all hate variety. When exactly did Nintendo come up with a new franchise character, rather than banging out the same tired ones from the 1980's?
  • 3 Hide
    notuptome2004 , October 24, 2012 11:36 PM
    giovanni86I have a friend who's a die hard fan of Nintendo, and for the first time he's going to actually wait and see if its worth it. After all the Wii was just a short thrill. For myself i will be letting my PC handle my gaming life after all the Wii U is just a small upgrade in terms of hardware and in all reality i just hate the idea behind the tablet thing becoming a part of the game. Didn't spend 2k on a tv to watch part of the game on a small tablet. But minus my hate towards it, i hope they do well to encourage Xbox and Sony to get off there chairs and pump out a new console so better ports come out for the PC to utilize the hardware we've already had for well over half a decade.




    The Wii U Gamepad Not Tablet does not just show you part of the game but you interact with it like an inventory screen or anything like that like in Zombie U your player on screen crouches down as you would in real life to saearch through the bag to get ammo or other stuff while the Game is still going in real time on the big screen it makes the whole survival horror aspect of the game much scarier


    Also other games the GP is used as a 2nd view in to the world separate from the view on screen Also games like Call of duty black ops 2 uses the screen in Multiplayer with friend as aon screen to play split screen while someone uses the big screen just to game on and you use the Wii U GP of which is all Wireless

    Also the Wii U is not justa small upgrade to the anything it is next generation system far better then anything the PS3 and 360 can handle . Multi-core CPU 2GB of ram in the system 1GB just for games a Radeon 7000 series GPU in the thing wel rumnored now to be a 6790 or somthing i dont know but still and the whole system is smaller then the Orginal Wii


    The GP tho has tones of features on it but in order for it to work the console must be on as well everything is powered and rendered by the Console itself the GP has no internal CPU or GPU


    You also have the Nintendo TVii features built in that works with your home DVR or Cable system

  • 3 Hide
    julianbautista87 , October 24, 2012 11:37 PM
    back_by_demandWhat the world really needs is the 473rd installment of yet another Mario game, because we all hate variety. When exactly did Nintendo come up with a new franchise character, rather than banging out the same tired ones from the 1980's?


    The old franchises are very good, you can't deny that... Pikmin is an excellent game, Mario is also very good and addictive...

    But you are right, I remember the Rare times, they usually came out with new ideas and stuff...
  • 0 Hide
    DRosencraft , October 24, 2012 11:40 PM
    What happened to Nintendo? They used to be a company with tons of cash on hand that allowed them to take risks and experiment. It used to pay off. Now they're just trudging along, hemorrhaging money like there's no tomorrow. The Wii U would have to be a true blockbuster for them to hope to make up for the fact they're dropping profit guidance that much. 70%? That's better than the $300 Million loss last year, but still, that's bad. Especially if they're relying on selling over 5 million systems AND averaging 4 games per buyer, considering few people even buy that many games over the course of a year, let alone in the next 5 months.
  • -1 Hide
    back_by_demand , October 25, 2012 12:14 AM
    julianbautista87The old franchises are very good, you can't deny that... Pikmin is an excellent game, Mario is also very good and addictive...But you are right, I remember the Rare times, they usually came out with new ideas and stuff...

    Yes, the old franchises, it is just embarrassing now though. This cow has been milked so much that the milk has turned to dust. Give us new ideas please.
  • -2 Hide
    dormantreign , October 25, 2012 12:55 AM
    I'm going to be a kid in line launch day of the WiiU. Can't wait.
  • 0 Hide
    hero1 , October 25, 2012 1:42 AM
    My friends and I are big fans of Nintendo consoles but the wii was too disappointing and this is only making us think twice. I've been trying to stir the ship towards buying it but hesitant at the same time. We're all going to play wait and see and maybe grab it during Christmas time if they lower the prices.
  • 0 Hide
    kinggraves , October 25, 2012 2:42 AM
    DRosencraftWhat happened to Nintendo? They used to be a company with tons of cash on hand that allowed them to take risks and experiment. It used to pay off. Now they're just trudging along, hemorrhaging money like there's no tomorrow. The Wii U would have to be a true blockbuster for them to hope to make up for the fact they're dropping profit guidance that much. 70%? That's better than the $300 Million loss last year, but still, that's bad.


    Yes the Wii just hemorrhaged money, right into the bank. That is EXACTLY what they are doing. They have tons of cash on hand, they are taking risks with a 3d handheld and a console that has a tablet gamepad. Risks do not always pay off.

    I just don't think Nintendo is being realistic with their estimates. The Wii dried out a couple years ago, they should have had an HD Wii ready then to transition. There has been a few games this past year worth playing, but not enough to expect them to move hardware. The 3DS was not what people were looking for. Concerns about 3D eye strain make it a hesitant buy for parents and the price was just too high for the novelty. Add in the 3DS has not been as pirate friendly as DS, hardware based piracy does help hardware sales. If you had put out Pokemon 3D instead of a sequel to the last generation Nintendo, those sales of 3DS would have been far higher. Everything they're doing is just a couple years behind where they should be. If the Wii U had been out two years ago, Nintendo would have had some time to get systems in houses while Sony/MS still had no release plans. Now they've got less than a year before we hear more from the other camps.
  • 1 Hide
    lpedraja2002 , October 25, 2012 2:44 AM
    If they would remake all the Nintendo 64, Gamecube and Wii golden titles and made them look acceptable in HD I will buy the WiiU without a doubt. Ocarina of Time, Super Mario 64, Majora's Mask, Donkey Kong 64, Paper Mario, Kirby 64, All Zelda games, All Metroid games, the rest of the Mario games... heck I just realized my wishes do not run the industries and that this will never happened, so no buy from me unless really good games come out for this and I can buy at $150.
  • 0 Hide
    slabbo , October 25, 2012 3:13 AM
    Well everyone is waiting for the new console, so of course as soon as they announced it, people held off on buying the current one. Wii U is already sold out of pre-orders on every sku. Nintendo is also selling the Wii U at a loss. So those profit projections seem pretty good actually. Also the 3DS still sold very very well, just not as high as expected. So they didn't sell the 18.5 million or so, but still sold 17.5 million? Still pretty good.
  • 1 Hide
    Thunderfox , October 25, 2012 5:08 AM
    What makes them think there will be compelling games for the Wii U, aside from the ones Nintendo itself makes?
  • -1 Hide
    notuptome2004 , October 25, 2012 6:03 AM
    ThunderfoxWhat makes them think there will be compelling games for the Wii U, aside from the ones Nintendo itself makes?




    let see just about every game developer is developing games for the Wii U and there is games like Zombie U that are exclusive to the Wii U many other games coming to the system within 6 months most of the games coming out next month on the other systems will be on the wii U launch day


    Obviously you just woke out of a coma and heard about the Wii U just now and dont know or had no clue of the games for it or you just could not do a Google search for the games coming out for it
  • -1 Hide
    willard , October 25, 2012 6:11 AM
    Quote:
    Nintendo believes it can sell every Wii U customer about four games - or 24 million copies in total. Given its history, this is a rather optimistic goal and will depend on a strong third-party lineup for the Wii U ecosystem.

    Oh lord, they're screwed. Nintendo has had the least impressive launch lineups in the industry (except maybe the PS3), and the biggest weakness of the Wii is the low number of third party games making good use of the quirky interface.
  • -1 Hide
    notuptome2004 , October 25, 2012 6:41 AM
    willardOh lord, they're screwed. Nintendo has had the least impressive launch lineups in the industry (except maybe the PS3), and the biggest weakness of the Wii is the low number of third party games making good use of the quirky interface.




    have you seen the Wii U launch lineup it has soem good high end 3rd party titels all of which are Superior to the same ones that will be on the current Gen consoles
  • -1 Hide
    tului , October 25, 2012 7:47 AM
    I've been waiting for Nintendo to go the route of Sega for a while now. Might take them a while to realize it themselves though.
    Hell, Google or someone could buy them up, just to have the name.
  • -1 Hide
    mazty , October 25, 2012 8:49 AM
    back_by_demandWhat the world really needs is the 473rd installment of yet another Mario game, because we all hate variety. When exactly did Nintendo come up with a new franchise character, rather than banging out the same tired ones from the 1980's?

    This. Ignore the fanboy reds, Nintendo have finally killed themselves by sacrificing all their gamers for casuals, and people are finally getting tired of playing the same game year after year. Nintendo is a blight in the gaming world just as much as Call of Duty or any other uninspired rehashed series or publisher who balks at the idea of doing something original. Quicker they die, the sooner the message will be clear (if SWTOR wasn't enough of a signal to the gaming world...).
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