Fri, Jan 30, 2009 | 07:03 GMT

Kamide quantifies “something big has gone wrong” at Nintendo remark

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KBC Financial Products analyst Hiroshi Kamide has clarified a comment he made yesterday in which he said “something big has gone wrong” at Nintendo.

Kamide made the remark in light of a 33 percent drop in yearly profit expectation from the Kyoto firm.

“It’s big in the respect that Wii demand is not being seen at all in Japan, and that they felt they had to reduce annual guidance,” the analyst told Kotaku.

“Why didn’t they just pre-plan and cater to markets where there was demand (or heaven forbid they have enough supply perhaps)?”

Nintendo reduced its estimated full-year profits yesterday with the release of third quarter financials.

Kamide said the move signalled a tough time for the company in the fourth quarter, where margins would be squeezed harder than Nintendo had experienced in the past three years.

12 comments

#1

Tonka
30/01/09, 7:44 am

Wii sales have been struggling in Japan compared to Europe and USA. I wonder if it will ever change. Will be interesting to see what kind of figures MHTri and DQX wil get.

#2

Shatner
30/01/09, 8:10 am

OMG..

#3

Hero of Canton
30/01/09, 8:25 am

DS is still on top in Japan while Wii is comfortably the best-selling home console, as it is in every other territory. I doubt Nintendo is panicking just yet.

That said, PS3 IS catching up on a weekly basis in Japan.

I think the handheld market is likely to dominate Japan for some time to come, particularly given the steadily-widening gap between western and Japanese tech. In general, Japanese games aren’t getting nearly as much out of the HD consoles as western ones, while the reverse is true of Wii.

#4

Blerk
30/01/09, 9:03 am

To be honest, I haven’t noticed Wii sales slacking off that much in Japan. They’re still selling 30kish per week, even in the quieter times. That’s not ‘bad’, is it? I mean, it’s not DS figures, but what else is?

#5

Psychotext
30/01/09, 10:22 am

HoC… I don’t think it’s so much that the PS3 is catching up (It sold less in 2008 than 2007 and so far in 2009 is selling less than in 2008) as much as the Wii is gradually falling down to its level.

#6

deftangel
30/01/09, 10:44 am

The Japanese market as a whole as declined, in the main you can pin the Wii selling less over there to that.

That said I wouldn’t be surprised if Nintendo do something to buck that trend this year.

#7

Hero of Canton
30/01/09, 10:45 am

In Japan? I agree that Wii sales are falling, but I’m sure PS3 sales have been steadier over the past few months than they were previously. And the 2007 sales undoubtedly were slightly artificially high because consoles always sell well at launch.

#8

Blerk
30/01/09, 10:52 am

PS3 sales got a Christmas bump, but they already seem to be heading back to pretty much where they were before.

Before that sales were steady, but they were ‘steadily terrible’.

#9

Psychotext
30/01/09, 11:02 am

HoC: I can get you the figures if you want… but can you just assume I’m right on this sort of thing (as I always am) and save me the work? :P

Bleh, here they are anyway:

2009 – Week 1: 28,144
2009 – Week 2: 20,690
2009 – Week 3: 17,708

2008 – Week 1: 38,907
2008 – Week 2: 38,117
2008 – Week 3: 34,363

Also, the “selling more in launch year” is a common misconception. Most consoles have their best sales in their 3rd or 4th years (mostly because their prices have dropped and they have a ton of games).

#10

G1GAHURTZ
30/01/09, 11:10 am

The Wii is a fad.

#11

Psychotext
30/01/09, 11:28 am

I’ve just realised that TEA is going to be all over this later because I’m spreading my filthy xbot lies. :(

#12

doctorstrange
30/01/09, 5:18 pm

i think the wii doesnt need to worry as it has monster hunter 3 coming
i think the ps3 doesnt need to worry as it has yakuza 3 and 2 final fantasys
i think the 360 doesnt need to worry as it has an incredibly low price and already a huge amount of JRPGs

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