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Update: Kamide’s clarified this comment here.
Following news of a major check in estimated yearly profits from Nintendo today, one analyst has predicted the firm will face serious trouble at the end of its financial year. That’s the quarter ending March 31 this year.
“Today’s revision suggests that the roaring pace of Wii growth that we’ve seen until now may be over,” KBC Financial Products analyst Hiroshi Kamide told the Times.
“The numbers also imply that we are going to see a sudden collapse in the fourth quarter from record margins to some of the thinnest margins Nintendo has experienced for three years.”
The downgrade could imply that “they know something big has gone wrong, and that people are not buying the machines,” Kamide added.
Is this it? The end of the waggling, stylus-driven dream? Place your bets now.
Thanks, GoNintendo.
Viewing 18 responses
Hunam said:
I think he’s talking shit to be honest.
Hero of Canton said:
What a load of bollocks. I expect Q1 will be a bit slow for everyone, what with the global recession and all, and Nintendo hasn’t really had any big hitters so far in 2009 and likely won’t before March – not on Wii, anyway.
I think this is basically just talking about Japan, and how PS3 has started to slowly catch up Wii week on week. But Wii’s still shifting more units per week than PS3, just not as much as before.
Besides, handhelds are still healthy. DSi’s going great guns, so either way that shouldn’t be part of the equation.
All that said, this year’s going to be very interesting for Nintendo – especially if PS3 gets a price cut. It could be that predictions of the casual market being most affected by the current economic climate impacts upon Nintendo more than Sony or MS. DS will still be safe (and DSi will buoy Nintendo in Europe this year) but Nintendo might just need a price cut if things start going downhill.
Bringit said:
Something ‘big’ has gone wrong at Nintendo…
What???
Surely their revised earnings are down to the strength of the YEN, it has affected all Japanese companies and was impossible to foresee.
Reducing sales expectations of Wii down a million and DS up a million… that’s really not changing anything in the grand scheme of things. Both profit-making formats are continuing to dominate.
Nintendo revised their earnings up in October, as some may recall. This ‘reduction’ is still higher than their original targets.
I think when you look at the ridiculous long-tail sales of Wii Fit, Mario Kart and Brain Training… Nintendo are well and truely in safe street.
Psychotext said:
The only thing I can see happening in terms of sales is finally catching up to the pent up demand in the US. We still haven’t seen what the baseline demand is over there as there’s been no lasting period where stock wasn’t an issue.
brennan40 said:
If Nintendo is in trouble, all they have to do is tack on a new hardware feature to their systems and watch them sell like crazy.
Isn’t Nintendo coming out with new Wii colours?
theevilaires said:
everythings falling right into place and look at michael pacther jr up here.
No_PUDding said:
I hope, in my heart of hearts it DOES come crashing down. Sufficiently to stop the Wii, but not so much, that Nintendo or their employees are put at any real risk.
But if it comes to it, as heartless as it sounds, out of sight out of mind.
Hardcore gaming > Nintendo
They made the change, they can face the consequences.
Or perhaps it’s the yen :rollseyes:
theevilaires said:
Nintendo for life bitches!
brennan40 said:
No_PUDding: lol why’d u want them to crash?
I hope they broaden their target and start catering more to mature gamers but Nintendo always been casual imo. and there’s nothing wrong with playing Harvest Moon once in a while heh.
No_PUDding said:
Pretty much becuase I think it’s crash and burn or casual.
More hardcore, crash and burn.
More casual, urgh.
I really do think it’s pretty much black or white, there’s no grey.
Psychotext said:
Who will protect Nintendo against your filthy slander?!?
Why will no-one rally to the cause?
deftangel said:
Can’t say I’ve heard of this analyst before. This is probably why!
If Nintendo are in trouble then christ knows what that means for everyone else.
Syrok said:
At least he isn’t saying much obvious stuff.
Zarckan said:
I’ve been saying for a while now that Wii and DS are starting to do a GBA… Sales flattened out well before xmas…
Quiiick said:
Sales will eventually flatten for the Wii in the near future but that doesn’t mean “Big N” is automatically in big trouble.
We were anyway all just waiting for the Wii-HD to finally launch!
JesteR said:
Wii or DS have nothing really new coming out. They still advertise in Germany Wii Sports and Brain Age…..
woodyrulesok said:
Wii sales have to end at some point, it’s inevitable once every man women and child has a Wii and DS they won’t be able to sell anymore.
Blerk said:
Yeah. They said that about the PS2, too. And look – people are still buying it!