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Analysts expect Nintendo to report second annual loss tomorrow

Tuesday, 23 April 2013 18:03 GMT By Stephany Nunneley

Nintendo is expected to post its yearly financials tomorrow, and Bloomberg expects the firm to announce a ¥18.7 billion ($189 million) loss of the period. Last year, the firm announced its first-ever annual loss. According to Ace Securities Co. analyst Hideki Yasuda, many aren’t happy with how president Satoru Iwata is running the company. “Iwata hasn’t produced good results in recent years,” he told Bloomberg. “He can’t avoid being criticized.” Via Gamespot.

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34 Comments

  1. salarta

    It seems like most companies are having financial troubles lately, but I think the core reason for Nintendo is a mix of hardware (often gimmicky, to boot) that’s poor on graphical and internet/media capabilities next to its competition, and a low perception of the kind of content to expect out of their consoles.

    The Wii was a success, but in the midst of its success, it didn’t do anything that would keep consumers coming back for more. The average person rarely touched it, making the Wii a very expensive toy for little use. In the midst of this, people that actually do play games learned three things about the Wii: it was THE place for shovelware, it won’t get major titles or else those titles will be worse than other versions, and Nintendo of America at the very least is reluctant to bring over the few games they DO have that people would want to get a Wii to play. That last point is exemplified by Operation Rainfall; while it’s a HUGE plus mark that Nintendo of America eventually allowed all three games to come to the U.S., people shouldn’t have to launch massive internet movements to get a company to release games they actually want to play.

    All of these impressions cascaded into the Wii U, and to a lesser extent the 3DS, though the 3DS still got some residual from the Wii’s success and the gimmick of 3D. The average consumer doesn’t want to buy it because they know it would be a waste of their money, especially in this economy where people need to save money. And the average gamer still has this image of Nintendo as a mix of shovelware and empty gimmicks that can’t keep up with its competition and can’t be trusted to let consumers buy and play anything of interest to them that isn’t Mario or Legend of Zelda.

    I also personally think they suffer from an image problem of people thinking their console is exclusively for families and children, and that more mature games like Eternal Darkness aren’t possible.

    All in all, if Nintendo wants to stay in the hardware business, I think it needs to release a new console with equal capabilities to Microsoft and Sony, ensure it’s workable enough to get ports of major games that the other two consoles get, and release titles exclusive to their console that people want (or more accurately, actually make those titles available to ALL the people that want them, not keep them exclusive to Japan).

    #1 2 years ago
  2. YoungZer0

    I think the poor graphics and the terrible internet capabilities wouldn’t be a problem if the core games would be … there. How long is the WiiU on the market right now? Where are all the core games? Last time I checked they announced a lot of games for the 3DS.

    If I was cynical I’d say that they let it die on purpose, otherwise how could you explain their actions? I don’t think they are going to survive this consoles era. They can’t simply throw another console on the market right after the WiiU and as soon as the PS3/720 hits the market it’s DEAD-DEAD.

    #2 2 years ago
  3. The_Red

    @2
    Yeah, if they get the game in time, I think Wii U can overcome most of its problems. I mean look at 3DS, it has poor graphics and horrible internet capabilities but it has been getting so many great games and a SHITTON was recently announced.

    Big N can announce a similar number of games for Wii U at E3 and the console could see a serious come back.

    #3 2 years ago
  4. dreamcastnews

    I think it’s quite upsetting when a company tries to branch out of what we’ve come to expect from tried and tested, tired gaming and gets branded a ‘gimmick’.

    I see exactly where Nintendo are going, they are trying to breakdown the fourth wall between gamers and the input method they use, sadly gamers are quite frightened of change hence the fierce brand loyalty and lack of imagination buying of Call of Duty / Fifa each and every year – it’s not an exact science but it’s certainly a factor.

    There always need to be a creative company in gaming to keep our experiences progressing, if all the consoles did the same thing we’d be all focal-pointing Nintendo for not being different enough from the other two I’m willing to bet and be left with a race much like the Gamecube days where Nintendo proved they simply couldn’t play the technological race with Sony and MS – there just isn’t room for three consoles that do the same, Sega is a testament to that.

    #4 2 years ago
  5. YoungZer0

    Gamers aren’t frightened of new controls. That’s why the Wii sold so well, because they wanted something new. Guess what? Nintendo didn’t deliver. From all the developers, it used the Wii’s unique controls the least.

    How is that not gimmicky? I mean they literally prove that they have no idea what to do with it, but expect other developers to do their job?

    Yeah, I can totally see how people would rather buy Call of Duty, than another Mario Party game that Nintendo shits out every month, instead of creating a new game from one of their tired franchises, or GOD FORBID create A NEW FRANCHISE.

    #5 2 years ago
  6. salarta

    @2,3,60: Unless the Wii U gets some really, REALLY impressive games, I don’t think it’s going to last very long. Games like Bayonetta 2. If the console does start to get enough really great games, it could be a launching pad for the notion that games don’t need to be overly expensive Hollywood fare to sell.

    But, I think the uproar over Bayonetta 2 being Wii U exclusive gets at the heart of the problem. Yes, the uproar was excessively idiotic, but it shows just how little all those people think of Nintendo at the moment. You’ll surely get fanboys of Microsoft or Sony, but all in all… the Wii U has the same GRAPHICAL capabilities as 360 and PS3, and Bayonetta isn’t an online game, so it’s not like there’s a real risk of graphics being much poorer than PS3 or 360, and it’s not like it’ll prevent people from playing it with their friends.

    The root cause of the uproar is this: Wii U is seen as a worthless gimmick with no real value in its own right, and to those people, Bayonetta 2 being Wii U exclusive is basically like saying the game costs about $250. They can’t imagine the Wii U getting ANY other games they’d want to play on that console instead of on a PS3 or 360.

    Personally, I’ve decided to hold off on buying any console until there’s either one REALLY blowout game, or five really good ones. I learned from the Wii and buying only one game per year for it, and the need for an Operation Rainfall for more games I would want to play, that it’s a waste of my money to get the console before I have a handful of games available for the console that I want to play.

    Also personally, on the “games that can’t also be played on a 360 or PS3 instead” front, the whole thing with Samurai Warriors 3 ultimately caused me to lose so much interest in the Warriors franchise that I stopped buying those games. Samurai Warriors 3 was set to release on the Wii. Then I found out SW3 was going to re-release on PS3 in Japan, and decided to wait since I prefer PS3. The West never got that port, but by the time I figured out we’d never get it, I’d lost interest in SW3.

    #6 2 years ago
  7. Gekidami

    Nintendo are so original and confident, they felt the need to announce a new Smash Bros, 3D Mario & Zelda along side their new console without actually having anything to show of those games or them actually even existing in any way.

    Yeah, if Nintendo want to come off as this force of gaming revolution, maybe they should use their tech in an interesting way, instead of knocking out the same old games.

    #7 2 years ago
  8. fearmonkey

    Cue reply from Francis in 3…..2…..1……

    #8 2 years ago
  9. DrDamn

    A price cut and the big guns coming this year is what’s needed. The big guns actually need to use the WiiU features too. I have confidence they can bring at least a couple of really exceptional games. On the plus side their own core titles won’t be hampered by the controller this time, bar notable exceptions like Wii Sports most of Nintendo’s core titles on Wii were worse because of the controller. With more traditional controls in the WiiU that won’t be a problem.

    Finding a way to really enhance titles and push the concept of the WiiU is going to be harder. I don’t doubt the titles will be fun and well designed, but I don’t think Nintendo has shown anything which shows it knows what to do with the controller yet. That’s really disappointing 6 months in already. NSMBWU was dreadful in that regard.

    The realists never though WiiU was going to be a smash. They need to step it up soon and show the commitment and development they have put behind the 3DS. At the moment the WiiU looks horribly neglected.

    #9 2 years ago
  10. Lengendaryboss

    @8
    Come on man do not attract Nintendo’s official guardian angel :D

    #10 2 years ago
  11. salarta

    @4: We can talk up Nintendo trying new controls all we want, but controls only go so far. People bought the Wii in droves because they thought it would be a great and fun experience, and thought a lot would be done with it.

    What you’re seeing today is blowback caused by a failure of the Wii getting fully utilized, for several reasons. There was inherent incompatibility between the Wii and other consoles; a company that want to make a multiplatform game would need to find a way of adapting their controls to Wii’s unique scheme, AND they’d need to dumb down their graphics to something the Wii could handle. Furthermore, the way the Wii handled online was atrocious. While PS3 and 360 were simply connected, could message friends and get in normal matchups in games, Nintendo required friend codes for all the notable stuff. Lastly, what Young mentioned in @5 melds with the issue of shovelware I mentioned before. Having a new control scheme is all well and good, but finding a legitimately good way to put it to use is another story. This is why the Wii ended up with a shovelware reputation; companies mostly just shoved random experimental garbage on the system, to see what it could do and in hopes that they’d make easy money on the casuals that bought the system.

    Trying a new control scheme just for the sake of a new control scheme, with no safeties in place whatsoever, is a disaster approach. It would have worked out okay IF Nintendo had killer games, and/or the system still included the expected standard of a gamepad and the same graphical and online capabilities as PS3 and 360.

    They are where they are today and for the next generation as a result of the expectations built this generation. If they want to try new control schemes then more power to them, but they need to make sure that everything else is still conducive to ports and expected standards in the industry, or at minimum that they have enough actual content to make it a hardware version of a “killer app.” Without that, what you have is something people look at as a flashy gimmick; it has no substance or function, it’s merely there to wow you. A floating car is a neat idea, but it’s not really worth the price of other cars if it can only go five miles per hour and can’t be safely operated when there’s mild wind gusts.

    #11 2 years ago
  12. deathm00n

    Salarta, thanks for being part of the comments section, you make good reads. Everything you said was well elaborated and didn’t sound like you are a fanboy of the other consoles. You made concrete points and the ones I would make if I could express myself better in english. I make your words mine.

    I was very interested in WiiU, ZombieU was my system seller, showed great games could be done for it. But since then there was nothing more that can catch my interest.

    #12 2 years ago
  13. gameon

    @salarta
    That’s what people keep saying, that most Wii owners rarely touch the console. Can you explain to me the fact that the tie ratio of the Wii is only slightly below that of the PS3? Or does the average Wii owner keep buying games, although he doesn’t actually play them?

    #13 2 years ago
  14. _LarZen_

    I have a Wii U, or the brick or the dust collector as I like to call it.

    Nintendo need to get some games out or this black brick is going to Gamestop in a near future.

    #14 2 years ago
  15. polygem

    NINTENDO:
    The only (remaining) games console manufacturer that truly deserves the label 100 ultra hardcore!
    i’ve heard some other ones are more about pizza apps these days…
    you guys just aint hc enough.

    #15 2 years ago
  16. polygem

    wait for kirby wiiu! that stuff is serious hardcore gaming!

    #16 2 years ago
  17. monkeygourmet

    As a few people are talking about exclusives here, lets quickly analyse some.

    Sony is pretty much seen as the ‘King’ of exclusives this generaation. Lots of new IP’s to keep gamers happy…

    MS is either saving a lot for 720, or basically trying to get into a position Nintendo is in albeit with a western slant (few IP’s but quality)…

    So lets look at Sony.

    This gen, Sony introduced a lot of new IP’s and reused brands.

    Uncharted
    Heavenly Sword
    Motorstorm
    Infamous
    The David Cage games (Heavy Rain for example)
    A continuation of the God of War franchise
    Gran Turismo
    Resistance
    Little Big Planet

    Now… Heavenly Sword was an instant fail, maybe it’ll be revisited next gen, but for the moment, it was a lacklustre title that under performed.

    Motorstorm… After getting past the initial bullshots and fake video, this series has done okay, but is severly limited to an ‘arcade’ racer. I can see future versions being download only, i.e. it hasen’t got any ‘legs’, hence drive club being announced.

    Resistance… This title has slowly diminished in quality all in the space of 1 console cycle. What was originally as a ‘Halo’ rival, has quickly been pushed into the dirt. Both gameplay and graphics were nothing more than a diversion compared to the Halo titles.

    Infamous… Not for me (again my opinion), but this title hasen’t done CRAZY numbers, and hasen’t got a huge place to go, innovation wise… lets face it, on the PS4 it’s going to be another super hero sandbox title.

    Uncharted… Great promise, but Sony has leaned on it a little bit too much IMO. The series was fresh, but has got worse after Uncharted 2. Very samey, great graphics but it doesn’t have much room for manuvre in it’s currrent incarnation.

    Heavy Rain & David Cage stuff… Very interesting movie/games. Basic gameplay, whats more to say. A good play through once, but they never turn the gameplay into anything special. Grapics come first, then they shoe horn gameplay around that. A nice distraction, but hardly ‘desert island’ gaming fare…

    Gran Turismo… A series being slowly driven into the dirt. Old, bring mechanics, needs a huge shake up as GT5 was a massive let down for everybody. Especially rehashed PS2 graphics and car models even after a huge dev cycle.

    Killzone… Again after all the bullshit fake video, what it boiled down to was a very generic FPS, fairly nice graphics but sluggish and shitty controls. Not a patch on Halo (Sony’s second attempt after Resistance) and again, slowly got worse as the series progressed.

    God of War… Very similar to Gears latest release, a very lacklustre title, series quality has been slowly going downhill…

    LBP shows the most promise and even that has out stayed it’s welcome this gen.

    Now, i’ve missed out a lot of PSN exclusives, as XBLA and EShop all contain some great stuff. You can argue it’s almost equal on that front.

    But, with all the great number of exclusives Sony put out, not many make them a huge amount of money or have a massive impact in the ‘all time best’ gaming charts of most people…

    I never understand why people slag of Nintendo for releasing Mario (Jak), Mario Kart (LBP Karting), Smash Brothers (PSAllstars)… etc… When they always take care over their product and generally ensure gameplay is fun and the controls are tight and ‘work’.

    Other companies always try to ape(escape), but never quite crack the quality of control or playability.

    The reason for this is experience and understanding a IP / fanbase’s expectations.

    It’s a strength, not a weakness…

    #17 2 years ago
  18. Clupula

    @10 – If he’s Nintendo’s Guardian Angel, what does that make me? lol

    #18 2 years ago
  19. Clupula

    “Again, Charles taketh Miyamoto up into an exceeding high mountain, and showeth him all the kingdoms of the game industry, and the glory of Sony and Microsoft;

    And saith unto him, ‘All these things will I give thee, if thou wilt fall down and become a third party publisher.’”

    -The Gospel of Francis 4:8-9

    #19 2 years ago
  20. JimFear-666

    If only nintendo could listen to the fans out there…

    Its sad to see nintendo in their ivory tower ignoring what people really want. All they do is mario and zelda games even if a lot of nontendo fanboy want a f-zero game, a new zelda that is not made with recycled stuff from previous zelda, star fox etc…But what Nintendo will give you its a 1000th mario game with re-used asset from previous games.

    Nintendo are showing more and more how lazy they are and this is sad and pathetic to see… I onced love nintendo but lately, they really sucks. Im tired of playing re-made games. I want new games, not games made with asset taken from past game or hd version of a supernintendo game.

    #20 2 years ago
  21. salarta

    @12: “I make your words mine.” DILLY DALLY SHILLY SHALLY, I shall now commence making you talk about what it’s like to wear lipstick! But yeah, what you say with ZombieU is the problem I encountered with 3DS. With the Wii, I at least had Twilight Princess to start me off; with 3DS, I’ve had nothing really worth going crazy over. Kid Icarus I’ll get later, Revelations will be for PS3, can’t think of anything else.

    @13: Tie ratio? Well now that I’ve looked up what that term means, I couldn’t tell you precisely what that means, I can only tell you my anecdotal evidence; I rarely play my Wii, none of the people I chat with that play games ever talk about playing any Wii games (with the exception of the Operation Rainfall games), and all my family that DID play Wii games either stopped entirely years ago or only pull it out for parties. Depending on what your statistics are and what years they cover, my best answer for you is “People bought a lot of shit when the Wii came out, some were let down by poor quality of what they bought, others got bored with it.”

    @14: No joke, before Last Story got announced for localization, I was very, very close to jailbreaking my Wii so I could import and play The Last Story from Europe. I was fully prepared for my Wii to end up bricked if I did something wrong, since at that point the Wii would have been just as useful to me bricked as it was unbricked but unable to play the games I actually wanted to play imported. I got my copy of Pandora’s Tower recently, haven’t played it yet but I’m expecting it to be great fun… which is a rare opportunity with Nintendo these days.

    @17: I’d like Sony to revive Legend of Dragoon and Arc the Lad, more the former than the latter. The former was AWESOME. It was like fantasy Power Rangers for a wider audience. It’s a shame that’s dead. Come to think of it, I wish a good company (as in, not Squeenix) would buy the rights to Shadow Hearts from Aruze. That was a great franchise that had a lot to bear.

    #21 2 years ago
  22. dreamcastnews

    @5 I’d suggest maybe you’ve had your eyes closed for a number of years? Both the Gamecube and Wii have brought new IP to the table in the last ten years, it doesn’t sell to lay it out as simple as possible.

    To be honest, props to Nintendo for branching out of a different controller method for the Wii U, it would have been all too easy to just use the Wii Remote again. It’d be great if we didn’t discount the Wii U before E3 or even Christmas, I don’t get what’s up with some of you lot here, you’re talking about a machine that we don’t even know what it looks like and one that we know nothing but rumours about!

    #22 2 years ago
  23. polygem

    @JimFear666: have you been posting on eurogamer.de ages ago? i mean like 6,7 years ago? your screenname sounds very familiar to me and i was posting once in a while there at that time…cannot recall my screename anymore tho. just curious :)

    #23 2 years ago
  24. salarta

    @22: Your post confuses me. It reads to me like you’re saying the Wii U hasn’t been released yet, when it’s been on the market since November and December last year. Unless you’re trying to talk about the PS4 and Durango, but the way you phrased it sounds like you’re talking about the Wii U.

    #24 2 years ago
  25. CyberMarco

    @ Monkey, http://i.imgur.com/07sqbCJ.jpg

    Nintendo in this generation didn’t bother making any new IP, with only exception the games from operation rainfall and Wii Play/Sports etc. Their big guns are always the same franchises with some polishing here and there.

    I can see that Sony is trying to offer same experiences like Nintendo do by “coping” games as you mentioned, but their games aren’t based on the same franchise in every gen over and over again.

    Before someone goes fanboy-ing on me, in my house there are all the 3 major consoles, with the latest addition being a PS3. For me Nintendo didn’t deliver something “alternative” that would attract me and make me wanting for more. Personally I found 3rd party exclusive titles more attractive than the 1st party ones, like Muramasa, Mad World and others.

    #25 2 years ago
  26. dreamcastnews

    @24 it’s been a long day, yeah I meant comparisons between the Wii U and consoles not already out.

    #26 2 years ago
  27. Hershel Linkton

    @25

    New N64 IPs from Nintendo: Smash Bros, Mario Party, Animal Crossing, Mario Golf, Mario Tennis, Paper Mario, Sin and Punishment, Wave Race, Custom Robo, 1080 Snowboarding…

    Gamecube: Pikmin, Luigi’s Mansion, Eternal Darkness, Battalion Wars, Geist, Donkey Konga, Odama, Chibi-Robo!….

    Wii: Wii Sports, Wii Fit, Wii Music, Excite Truck, Disaster: Day of Crisis, Pandoras Tower, Xenoblade Chronicles, The Last Story, Tact of Magic, Endless Ocean….

    WiiU: P-100, Nintendo Land, X

    #27 2 years ago
  28. CPC_RedDawn

    Nintendo need to get their act together.

    People bash their franchises for being old and and outed, and them just re releasing the same game over and over again. This is very true, the audience that grew up playing Nintendo, NES, SNES, N64, even GC have grown up and moved onto other platforms with a more adults and social experience.

    If Nintendo focused a little more on the actual unit of the Wii U and not the damn controller they may have gotten quite a large head start. Focusing more on the power of the machine, its social aspects, its user interface, and its price. Calling it the Wii 2 would of been a good start, as a lot of people don’t even know its a new console.

    Getting 3rd parties on board earlier would of been a good start as well, using some of that money they have stockpiled to buy “ports” of games, or to help fund new and upcoming project to be on their system would of been a good idea too.

    Advertising, I mean, I saw a few adverts on TV near Christmas and a few billboards, but that was it! From a company that have over $13 billion to play around with.

    Getting a more adult Zelda out, you know add in a better combat system, more adult theme (blood/gore, etc) have new items rather than the same boomerang, grapple hook, iron boots, etc. Its getting tiresome. Don’t copy the crap we get from games like DMC, or Gears. Show them how its done with a massive world, voice acted NPC’s. 100+ hours of gameplay, multiple endings, hidden dungeons, mind bending puzzles, etc.

    What do they release, a 2D Mario game as a launch title. I mean, how long does it actually take a company the size of Nintendo to make one of those? 6-12 months maybe. They have 90% of the sprites, animations, backgrounds, textures, objects, already made. They could spit one of those out in about 3 months if they wanted to. That Mario Bro U should of been packaged with the console like Wii Sports was.

    Or even better, package the console with.

    1) The unit it self,
    2) All cables etc,
    3) Classic controller
    4) A Wiimote+Nunchuck (2 of them with Wii Motion Plus built in)
    5) Mario Sports!!!

    Imagine a Mario Sports ALL IN ONE game packaged with the console, simply upscale Mario Tennis, Golf, Olympic Games, etc, into one game. People would of gone crazy for it. Also, how much does it cost them to make a Wiimote, and nunchuck? I bet it costs A LOT less to make 3 or 4 of those than it does to make the current Wii U Tablet controller. That thing could of been released as a peripheral a year or two down the line.

    Also last but not least, out sourcing their IP’s to other companies. License another Eternal Darkness, Actually use the money they have and pay other companies to develop killer games for the system. Get DLC incentives for third party games. The only third party they have on board is Ubisoft and even they are struggling to except Nintendo’s decisions.

    #28 2 years ago
  29. Telepathic.Geometry

    Ahh, Ninty. Technologically behind, online not up to standard and poor relations with 3rd parties. They’ve always survived because they had some of the best and most innovative games on the market, but I don’t think that they have it in them to properly support both 3DS and Wii U to the extent it needs.

    Lately they’ve made the 3DS almost a must have system in my opinion, but I guess they haven’t been able to do the same for Wii U. I predict trouble for Ninty this console generation unless they do something dramatic like they did for the 3DS…

    #29 2 years ago
  30. Schwarzerwind

    @2

    Yep. Everything I’ve heard about lately, I got interested in only to find out it was for the 3DS.

    I don’t want a 3DS. I want a Wii U. Make me want one as much as I wanted a damned Super Nintendo back in the early 90′s, Nintendo.

    Where is the frothing rage of desire? You guys used to be excellent at that.

    #30 2 years ago
  31. CyberMarco

    @27 Did I say something else?

    #31 2 years ago
  32. Telepathic.Geometry

    LIST TIME!!!

    This is a list of some of my favorite third games this generation, and they’re all 3rd party:

    Batman Arkham (Asylum, City), Bioshock (1, Infinite), Borderlands (1, 2), Braid, Castlevania: Lords of Shadow, Dark Souls, Dead Space (1, 2), Deus Ex: Human Revolution, Dishonored, Far Cry 3, Kingdoms of Amalur, Limbo, Lumines, Majin and the Forsaken Kingdom, Mass Effect 2, Skyrim, Tomb Raider, Vanquish, XCOM.

    That there is the best part of two dozen great games. How many of them appeared on Nintendo conoles?

    #32 2 years ago
  33. salarta

    @28: Err, I disagree completely about updating franchises to be “more adult.” That’s the exact opposite of what should happen: those franchises should stay focused the exact same way they always have been. The whole “hurr let’s make it more ‘adult’ and ‘realistic’,” or rather what our society wants to pretend counts as adult and realistic, trend is terrible. No, what they need is to either use the IPs they have that ARE geared toward adult content, or create a brand new IP for the cause. They have Eternal Darkness and Metroid as potentially more mature franchises, though Metroid would be better since what Nintendo needs at this point is a more mature iconic protagonist to balance out the endless stream of child-focused ones.

    In fact, I think a lot of the reason Metroid has failed in recent years is merely a consequence of Nintendo being so stuck in the mindset of experiences for children that they don’t know how to make a game with more mature material. Other M was pretty juvenile in its attempt at a story, just like every single game this generation starring a female protagonist that wasn’t Portal 2. They basically made Other M into a game for the stereotypical teenage boy. I’ve played Metroid, Super Metroid, the first Metroid Prime, Other M and a bit from a few side games, and what I’ve seen has led me to believe that Metroid is perfectly open to a mature approach. This is something that is not good for Mario or Legend of Zelda, since both are more like fairy tale adventures for kids. Not that adults can’t enjoy such things too, of course.

    #33 2 years ago
  34. Clupula

    *sighs and doesn’t even say anything*

    #34 2 years ago

Comments are now closed on this article.

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