After years of printing money with its Nintendo DS and Wii consoles, Nintendo has reported a loss for the first time in seven years. The company reported its financial results for the period covering April 2010 to September 2010 and the numbers were not pretty. According to The Wall Street Journal:
The Japanese videogame company recorded a net loss of 2.01 billion yen ($25 million) in the fiscal first half, compared with a profit of 69.49 billion yen a year earlier.
Operating profit for the period fell 48% to 54.23 billion yen from 104.36 billion yen a year earlier.
Revenue fell 34% to 363.16 billion yen from 548.06 billion yen.
Ouchie.
After selling millions and millions of Wii systems, Nintendo’s home-console sales were bound to take a dive. The numbers reflect that the saturation point has been hit. The crazy high value of the yen was also a major factor; it’s hard to export products when your currency makes others look like Monopoly money.
Will the upcoming 3DS — which comes out at the end of Nintendo’s current six-month financial-period — and a healthy holiday season be enough to turn things around? Put on your videogame analyst hat and predict (please)!
I don't think they will see those kind of numbers anymore, the market is being taken over by social games. Zynga's shares are slightly higher than EA's and I think that is an indicator of where things are headed. I wonder which of the big 3 or perhaps a new comer will dominate the next decade.
Yeah I'm with Big Blak on this, I don't think they'll see those kinds of numbers anymore, despite the 3DS. Not saying it won't do good, b/c people will flock to it in hordes. It's just all these social games around, everywhere!
I really hope people start to get bored with these social games and move to a handheld system or a console. I personally think there are much better games out there to play. This is like one of those games in the $10 bargain bin at Khol's or Sear's becoming a #1 seller.
Social games aren't going anywhere. Although there's some overlap, a lot of people that play them aren't the kind of people that would buy any gaming system.
While that is a good point that people who play social games aren't always the type to play console games or buy them or anything, I still don't like to see the rise of social gaming by the likes of farmville or mafia wars. I still feel that if you want to put that much time into a game, you might as well get something out of it- and I have always felt that you can get that experience from any Nintendo handheld.
Just sticking with the basics gives you all of the Mario games, Super Princes Peach, Zelda, Kirby. Then you have your games like Professor Layton or Pokemon, etc. There are plenty of other games out there that I feel give you more for your time and effort. I know social games are here to stay, but I don't have to like it
Even the games you mentioned are more involved than Farmville. That's part of its appeal — the simplicity. Plus, logging into Facebook is lower barrier of entry than buying a handheld console and a game. People love the low effort of social games.
People reap what they sow. Sure there is tons of appeal to the low effort of logging into facebook, but you get nothing out of it. I used to play mafia wars on facebook, but there was absolutely 0 point to the entire thing. It was so boring and nothing got accomplished, no story was told, nothing unfolded. Zero effort, zero involvement, zero enjoyment. I prefer some involvement and to get something out of a game I play.
But still I don't think any of the games I mentioned require that much involvement. You can play through a level in Mario or explore part of an island in Zelda for as little or as long as you want. When you only have a limited amount of time to play, there are games for that. But when you have a larger chunk of time to play, there are plenty of games that can offer a better experience than any social game ever will.
It's still more effort than logging into Facebook. Figure a person is on a PC checking out the Internet or doing work. If they want to be entertained for a while, they're right there. It's easier and cheaper than using a handheld system.
Oh I agree, it is easier. But that's what I mean when I say people reap what they sow. The PC is the preferred method because it is easier to log into facebook to play a game, whereas the handheld system is harder and has a cost attached so it is not as widely used.
I personally just don't see anything rewarding coming from playing an online social game that is as low involvement as something like farmville. But I do understand why it is popular and preferred.
i don't think nintendo will record sales numbers anymore as well. the 3DS will help them meet their sales goals but the Wii sales will start dwindling, especially with sony getting Wii games ported for Move support. Just saw where No More Heroes is getting ported after great response in their Japan launch. I'd love to play this game in an HD version.
this had me thinking. Should i even bother getting goldeneye next week? knowing activision they'd release it for PS Move in 3 or 6 months.
I may be alone on this one, but I really think Nintendo should close shop on their hardware (the console, not the handhelds) and just focus on doing games for PS3, Xbox, PC and smart phone apps. They are in a perfect position to leverage their popular brands to other outlets. And without the high cost and marketing it takes to create and manufacture consoles, they would be in a better financial position.
Imagine a traditional Mario game on the iPhone, or a Zelda game with the PS Move or a Pokémon game with Kinect, etc.
It just seems they could save more money (and make more money) buy licensing their intellectual properties out and software sales more than they can from the inevitable Wii 2.
-M
Generally, Nintendo makes more money on consoles than the competition because it uses older and cheaper parts.
On paper, I get what you're saying, but I don't think it would work culturally. I don't see a Japanese company making that kind of move. Look what happened to Sega. It was viewed poorly after it stopped making consoles (of course there were loads of other problems as well).
I KNEW you were (or someone else was) going to bring up Sega. I would, as you pointed out, refer to those "other problems as well" for Sega's failures that would not hamper Nintendo's foray into the world of software.
Culturally, I would have no idea since I've never been to Japan or really been exposed to their culture outside of some really sick hentai videos.
Needless to say that I don't think I can easily stereotype all of Japan as sick, perverted, sex-crazed, penis/tentacle-in-every-orifice loving hybrid monster/alien/mutant demon people.
-M
Yeah, I just don't see it happening culturally. It would be like giving up and/or losing honor.
I have often thought that as well but thought they should make a "nintendo" controller for those games. Their first party titles play great on their crazy inputs.
Another victim of social gaming gone wrong
http://www.huffingtonpost.com/2010/10/28/alexandr…
Makes you wonder how Jack Thompson will attack it huh? I'm pretty sure Farmville doesn't involve any conflict.
Maybe this will cue the morality police on that some people are just f'n crazy.
How sad! This is why i don't play Farmville.
Good ol' Jacky boy won't touch it because to many people (moms, dads, grandparents) play those crap games.