Profits tumble at Nintendo

I wouldn't count them out yet. Maybe I'm wrong in this thinking, but while the Revolution hasn't show much yet, one factor alone is making me want it. What I think of as the "retro industry" alone I think is going to make the new system sell quite a few units. Personally I think Nintendo is going to be somewhat in their own play field in regard to Sony and MS, they are definatly going to have their niche. Kinda like the "none of the above" gaming console. (think Brewster's Millions:))

The DS was an iffy idea, especially the fact it's not officially the new GameBoy, kinda like what the SP was to the GBA. Releasing the same system with different options is getting old. I'm not saying I don't like my DS at all. I'm just saying you can only repackage the same thing, in so many colors and shapes, until everybody has all they will buy.

I really hope they do not become the next Sega. While it would be great to have their first party games on all platforms, there almost has to be 3 contenders to kinda keep whoever is on top in check. The competition can only help.
 
Without starting a system war, is it safe to call Nintendo's console a U.S. market failure?

The last NPD figures I saw had the PS2 outselling it 5-1 and the Xbox outselling it 3-1 for the month. There's been nothing outside of Killer 7 I've wanted on it this year and it's multi-platform. I have exactly three games left to buy before I consider my Game Cube collection complete (Judging by release schedules and public information.) and that's Paper Mario, Geist and Zelda. For someone that has 300+ games and has already identified 25 games to get by the end of the year that should make Nintendo execs nervous as hell.

Their GBA sales tanked and there's no way they have similar margins in the DS. Even if the DS picked up diminishing GBA sales 1-1 their profits would still drop. The Revolution isn't even mentioned as competition to PS3 and 360 but as an afterthought like "Oh, and here's what Nintendo is doing.".

I think the Big N is well into its death throes. I actually think it began when they first lost money and attributed it to currency exchange rates. Same quarterly report they announced the Game Cube production line would be shut down for 9 months or more. I think this was the same quarter two years ago.

Does anyone honestly believe they're going to do a console after Revolution anymore?
 
i think nintendo will shock a lot of people in the new systems. I mean if Xbox 360 and PS3 are both pushing 399 and The new nintendo hits for 99 or 149 Expect a lot more people to grab the Nintendo for 149 before the 399 systems

heres the catch though. Nintendo will have to get this out the door Fast cause these games will probally be ranked up there just like First gen Xbox 360 and ps3 games but Once they learn to use the power the xbox and ps3 can do it will make the new nintendo system look very bad
 
is it safe to call Nintendo's console a U.S. market failure?
Click to expand...

Nope. Nintendo is #1 in consoles sold this generation. The GBA is still ahead of the PS2 in units sold. The DS is ahead of the PSP in N. America. Plus they have their Gamecube sales.
 
I actually thought Revolution was going to include backwards compatibility with other consoles because it'd be their last console.. I mean, what better way to go out than a console that can play games from their entire history?

[quote name='Morrigan Lover']Nope. Nintendo is #1 in consoles sold this generation. The GBA is still ahead of the PS2 in units sold. The DS is ahead of the PSP in N. America. Plus they have their Gamecube sales.[/QUOTE]

Do you know the difference between a console and a portable?
 
Ha, I can still remember Reggie at E3 2004 (less than two years back) blowing about Nintendo's momentum, their 2nd place in console sales, etc. Who's kicking ass and taking names now, Reggie? :D
 
On second thought, maybe Sega and Nintendo should just go in together and design a console, putting a stop to all this nonsense. :)
 
To every Nintendo fanboy the GBA and DS are counted as consoles so Nintendo is and will always be #1. Handheld, console, they're all the same.

You can't argue with those kinds of fans.
 
Aside from the lack of third party support, I just don't understand consumer behavior. Perhaps I'm blinded by nostalgia or am indeed a fanboy, but I think the GC is the best of the current Gen systems. I have people throwing the large library of Ps2 titles at me and all I can say is what difference does it make if a majority of them are mediocre? Nintendo 1st party games are the way to go, and I have a feeling that may be all I buy this next gen.

As a side note, I don't count the Ps1 games as part of the PS2 library, if I did that then the Revolution's backwards compatability(depending on its span) would allow it to EASILY claim the title of "BEst console ever".
 
The PSP has been outselling the DS, both hardware and software-wise, since it came out. It's only a matter of time before it catches up.

Anyone have total sales figurs for the DS in the U.S.?
 
Reality's Fringe said:
Aside from the lack of third party support, I just don't understand consumer behavior. Perhaps I'm blinded by nostalgia or am indeed a fanboy, but I think the GC is the best of the current Gen systems. I have people throwing the large library of Ps2 titles at me and all I can say is what difference does it make if a majority of them are mediocre? Nintendo 1st party games are the way to go, and I have a feeling that may be all I buy this next gen.

As a side note, I don't count the Ps1 games as part of the PS2 library, if I did that then the Revolution's backwards compatability(depending on its span) would allow it to EASILY claim the title of "BEst console ever".
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Yes, Nintendo can be profitable based just upon their franchises. They just aren't going to compete in the same league as Microsoft & Sony. I think a lot of Nintendo's future success is riding on Twilight Princess. This game is going to either make people decide, yea I need to buy the Revolution to go along with either my Xbox360 or PS3, or I think I can get by not playing this time around. Nintendo has become the manufacturer of the companion console. People are going to buy an X360 or a PS3, it's going to be Nintendo's goal to convince them that the Revolution should sit there beside it so that you can play Mario and Zelda.

I do expect Nintendo to do quite well this holiday season though. I think Nintendogs is going to be huge for them and drive the sales of DS's for awhile.
 
[quote name='PittsburghAfterDark']To every Nintendo fanboy the GBA and DS are counted as consoles so Nintendo is and will always be #1. Handheld, console, they're all the same.

You can't argue with those kinds of fans.[/QUOTE]


Honestly, what's the difference? If a PSP is more technically advanced (at least in terms of size and heat) and more expensive than any console on the market, and is marketed to the same people, and it plays games, what's the real difference?
 
[quote name='evanft']The PSP has been outselling the DS, both hardware and software-wise, since it came out. It's only a matter of time before it catches up.

Anyone have total sales figurs for the DS in the U.S.?[/QUOTE]

Well, they've sold at least 20 DS's in the U.S. because that's how many I see used at my local GameRushes. I kid, I kid.
 
[quote name='evanft']The PSP has been outselling the DS, both hardware and software-wise, since it came out. It's only a matter of time before it catches up.

Anyone have total sales figurs for the DS in the U.S.?[/QUOTE]

I know it's been beating the DS recently in hardware sales, but in software? What are people buying, Lumines for the third time?
 
[quote name='Tromack']Honestly, what's the difference? If a PSP is more technically advanced (at least in terms of size and heat) and more expensive than any console on the market, and is marketed to the same people, and it plays games, what's the real difference?[/QUOTE]

People don't go to the store looking for a gaming console (Xbox, PS2, Gamecube) and come home with a PSP, GBA, or DS instead. That's a pretty simple way to explain what the difference is.
 
[quote name='PittsburghAfterDark']Without starting a system war, is it safe to call Nintendo's console a U.S. market failure?
[/QUOTE]

I think calling it a flat-out failure would imply the unit isn't selling enough games and ish to pay for itself anymore and production should/is going to stop. I'm pretty sure that isn't the case just yet.

It is quite safe to say Nintendo's console is in a distant 3rd of the 'race'... and since that is what people say, I guess it's OK.
 
[quote name='shipwreck']I think Nintendogs is going to be huge for them and drive the sales of DS's for awhile.[/QUOTE]

I never really got into the whole Tamagochi virtual pet craze in years past, so I don't see how Nintendo's latest take on it will enjoy blockbuster sales this year. Some of us have real pet dogs at home. :D
 
Big deal, their sales are down this quarter. Happens all the time, in all industries.

I'm sure this'll turn into the usual discussion: A bunch of retards come plowing through, and decree that "THIS IS THE TIME FOR NINTENDO TO FALL THEY ARE DOOMED XBOX WILL TAKE OVER AND THEY WILL PUT M-RATED ZELDA ON IT LOL OWNED," because like countless other companies, Nintendo had a "down" moment in the entirely normal "ups-and-downs" cycle of business.


[quote name='MaxBiaggi2']I never really got into the whole Tamagochi virtual pet craze in years past, so I don't see how Nintendo's latest take on it will enjoy blockbuster sales this year. Some of us have real pet dogs at home.[/quote]
Ah, another inciteful fellow who seems to think that their personal tastes will define all movements within the entire videogame market. Allow me to point to Japan, where Nintendogs is selling like hotcakes. I need say nothing more.
 
[quote name='PittsburghAfterDark']Without starting a system war, is it safe to call Nintendo's console a U.S. market failure?[/QUOTE]
Let me start this by saying that I'm not a Nintendo apologist.

Gamecube could be the #10 console in the market, but if its profitable, I'd consider it successful. This has basically been their approach. They're targeting more of a niche market than they are trying to be a real mainstream product. I don't know if thats a good long term strategy, but they're doing ok so far.

What surprises me is, with how completely dominant they are in the handheld marktet, that they don't try to leverage that against the home market. Sony is doing the opposite, using their home console dominance to break into the handheld market, with positive results.
 
[quote name='MaxBiaggi2']I never really got into the whole Tamagochi virtual pet craze in years past, so I don't see how Nintendo's latest take on it will enjoy blockbuster sales this year. Some of us have real pet dogs at home. :D[/QUOTE]

Just because you didn't get into Tamagochi, doesn't mean that it wasn't a huge hit that made a lot of money. I have no interest in these type of games either, but kids eat this crap up faster than Lucky Charms.
 
[quote name='MaxBiaggi2']I never really got into the whole Tamagochi virtual pet craze in years past, so I don't see how Nintendo's latest take on it will enjoy blockbuster sales this year. Some of us have real pet dogs at home. :D[/QUOTE]

I hope Nintendogs can re-spark the Tamagotchi craze.... I've got a gold original, sealed, and would love to make a lil money on ebay :D
 
Well nintendo is going much better at Japan. Right now the DS software sales is talking about 8-9 games out of the top 20 in Japan.
 
Part of the blame is due to nintendo having two portable systems out at the same time. There causing competition not just to sony but themselves. Most people by now, as well as publishers have moved on to the ds and GBA is left with crappy third party games which no one is buying. So the big n is throwing money at a system which is beaten out by both ds and psp.

The gamecube was an abysmal failure. By now nintendo has a small fraction of the third party support. Look at how many games come out for just ps2 and xbox. Without third party support, there is a lot less time to spend in the gc section of the store when all the new games are elsewhere. And as for first party, we haven't seen many adventure games, just crappy games with mario and company thrown in. So far in 4 years there has been...1 mario adventure, 1 luigi (who cares about him?) 2 metroids or as i call them hemroids, 1 LOZ game, no real DK games at least not like DK 64, and two star fox, one of which wasn't even a sf game until the end.

Nintendo really needs to listen to fans with this next console and stop thinking there so innovative, there not, nothing on the GC was, and start making some games that appeal to everyone or there bottom line woes will continue.
 
[quote name='Birakon']sales will pick up when zelda launches[/QUOTE]

Sales of what will pick up? Zelda? I'm pretty sure the overwhelming majority of people that are going to buy Zelda already have a Cube. The Cube will see a very minor increase of sales due to Zelda.
 
[quote name='slidecage']i think nintendo will shock a lot of people in the new systems. I mean if Xbox 360 and PS3 are both pushing 399 and The new nintendo hits for 99 or 149 Expect a lot more people to grab the Nintendo for 149 before the 399 systems

heres the catch though. Nintendo will have to get this out the door Fast cause these games will probally be ranked up there just like First gen Xbox 360 and ps3 games but Once they learn to use the power the xbox and ps3 can do it will make the new nintendo system look very bad[/QUOTE]

There's no way the Revloution will debut at $99 or $150. I tmight be cheaper than sony and microsoft but not that low.
 
[quote name='PittsburghAfterDark']Without starting a system war, is it safe to call Nintendo's console a U.S. market failure?[/QUOTE]

It's a failure in a "my dick is bigger than your dick" kind of way. But since the system has been, and still is turning a profit, I'd be hard pressed to call it a failure from a business standpoint.

And honestly, all you people that think Nintendo is finished, why don't you call me when they've actually been in the red for a several quarters. Seeing less profits during a transition period is hardly cause for alarm. Even with the "failures" of the N64 and GameCube, Nintendo has been one of the most profitable companies in Japan for years and years. Hell, if you just look at their game divisions, Nintendo whips MS in profits and I think they might beat out Sony too.
 
[quote name='dafoomie']Let me start this by saying that I'm not a Nintendo apologist.

Gamecube could be the #10 console in the market, but if its profitable, I'd consider it successful. This has basically been their approach. They're targeting more of a niche market than they are trying to be a real mainstream product. I don't know if thats a good long term strategy, but they're doing ok so far.

What surprises me is, with how completely dominant they are in the handheld marktet, that they don't try to leverage that against the home market. Sony is doing the opposite, using their home console dominance to break into the handheld market, with positive results.[/QUOTE]

Yeah, the profitability argument. The Game Cube isn't profitable. It just can't be. I don't have a breakdown of revenues (Nintendo does not seperate GCN, GBA and DS revenues in their quarterlies and annual.) but even on the best estimates I've seen the GBA has been carrying the company. The GCN is at best mildly profitable, at worst, mildy unprofitable. I don't think it's a catastrophic success or failure financially but close to break even. You don't get into this business to break even.

Well, Microsoft might considering that would be a huge improvement..... I digress.

They did try to leverage the home market against the GBA. It failed, it sucked and people laughed at them. You know, that silly link cable? The one that let you play a NiGHTs mini-game from PSO? The one that they used for 4 Swords, Metroid, Crystal Chronicles and Wind Waker? Anyone ever play as Tingle? Thought not. They tried again with the eReader and Animal Crossing cards.

Every website and fan laughed at Nintendo for their attempts at leveraging their handheld businesses into the home. They sucked, they sucked a lot.
 
Wait a second.

M$'s operation has been in the red for it's entire existance except the last few quarters when Halo 2 was released. In today's market, Xbox sales arn't as high now as they were during the earlier part of this year thus pulling them back in the red.

Nintendo, on the other hand, has almost always had a profitable quarter. So even though their figures are down, they're not losing money. I'm not sure how much of their profits are coming from the GC but if it's brining in $$$, how can you call it a market failure?
 
[quote name='PittsburghAfterDark']They did try to leverage the home market against the GBA. It failed, it sucked and people laughed at them. You know, that silly link cable? The one that let you play a NiGHTs mini-game from PSO? The one that they used for 4 Swords, Metroid, Crystal Chronicles and Wind Waker? Anyone ever play as Tingle? Thought not. They tried again with the eReader and Animal Crossing cards.

Every website and fan laughed at Nintendo for their attempts at leveraging their handheld businesses into the home. They sucked, they sucked a lot.[/QUOTE]

You make it sound like trying something new is a waste of money. True, there's probably little chance that it will make a return on investment. BUT if it does work out, they'll be the only one in the market making them the sole benefactor of a new niche.

Reminds me of the Department of Defense's DARPA - spend money on programs that have little to no chance of success, but huge pay-offs if it does pan out.
 
[quote name='CoffeeEdge']Ah, another inciteful fellow who seems to think that their personal tastes will define all movements within the entire videogame market. Allow me to point to Japan, where Nintendogs is selling like hotcakes. I need say nothing more.[/QUOTE]

You missed my point entirely, very perceptive you are. While the Tamagochi craze also did quite well in Japan, it never quite reached that level of fanaticism (or financial success) in the US, so while Nintendogs may be selling in Japan, this is no guarantee that it will enjoy similar success stateside. I need say nothing more.
 
[quote name='PittsburghAfterDark']Every website and fan laughed at Nintendo for their attempts at leveraging their handheld businesses into the home. They sucked, they sucked a lot.[/QUOTE]
That was a pretty halfassed attempt though. If they were somewhat competent and really wanted to, they could have done a lot more than a stupid link cable. Well, Nintendo probably couldn't. But I bet Sony could.

I'm not by any means calling Gamecube a success, but I equate success more to profitability than to market share. If the Cube didn't make any money, then it wasn't a successful console.
 
[quote name='MaxBiaggi2']You missed my point entirely, very perceptive you are. While the Tamagochi craze also did quite well in Japan, it never quite reached that level of fanaticism (or financial success) in the US, so while Nintendogs may be selling in Japan, this is no guarantee that is will enjoy similar success stateside. I need say nothing more.[/QUOTE]

I don't know what part of the US you were in, but it was absolutely impossible to find a Tamogochi where in the area where I grew up.

And if it didn't reach the craze in the US like it did in Japan, how do you explain the 100+ different spin-offs of the Tamagochi?
 
The way I look at it is that Sony and MS will be competing for my money next generation. Nintendo already has it. Unless Sony and MS can offer up radically different experiences then I'm only buying one - just like this generation. I think Nintendo can exist on the fringe and they don't have to be #1 in overall sales to be considered a financial and technological success.
 
Nintendo certainly isn't going in the crapper, and the Gamecube isn't a failure. Is Apple a failure because PCs outsell Macs? Of course not. They've got their niche market (grass-smoking hippies who like to overpay for bad computers), and they are serving it well.
 
The best thing Nintendo did to leverage the handheld against the home market was the GBA Player for the Cube. Can't believe I forgot it.

Honestly I think that's the coolest console add on this generation. I hate the GBA but play handhelds so infrequently that I can't justify a SP or DS. Without the GBA Player I'd never touch my games.

The link cable and eReader though did suck a whole lot though.

The Apple vs. PC argument is flawed. Apple makes money with their PC's and always has on a per unit basis. They make more money now from the iPod than their PC's. If Nintendo is breaking even to losing money on the Cube they aren't the Apple of the console market.
 
[quote name='MaxBiaggi2']While the Tamagochi craze also did quite well in Japan, it never quite reached that level of fanaticism (or financial success) in the US...[/QUOTE]
Oooohh, I see. In America, Tamagochi was only a huge success, wheras in Japan, it was an earth-shaking success. Well, then, I see your point entirely.

Look, go back and read your post:
I never really got into the whole Tamagochi virtual pet craze in years past, so I don't see how Nintendo's latest take on it will enjoy blockbuster sales this year.
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Right there, you are saying that because you didn't get into the virtual pet craze, you don't see how Nintendogs could do well.

You didn't say that you don't think that people are as into virtual pets as they used to be, and that would keep Nintendogs from cleaning up; you said that because YOU didn't catch on to virtual pets years ago, you doubted it's chances for success. It's right there, plain and simple. That's what I didn't like about the post.
 
[quote name='int80h']If I have to read another "OMG Nintendo is teh DOOOOMED!!!!111" post again...[/QUOTE]

...*POW* *ZIP* Right in the kisser!!!
 
[quote name='int80h']If I have to read another "OMG Nintendo is teh DOOOOMED!!!!111" post again...[/QUOTE]

Yes, posts such as yours are much better to read and add a lot to any discussion.
 
I don't know what you guys are on, but I regard the link cable as a sucess simply because of 4 Swords Adventure and Animal Crossing. 4 Swords was one of the best multiplayer games this gen, and having your own island on animal crossing? Fahget abou' it.
 
Reality's Fringe said:
I don't know what you guys are on, but I regard the link cable as a sucess simply because of 4 Swords Adventure and Animal Crossing. 4 Swords was one of the best multiplayer games this gen, and having your own island on animal crossing? Fahget abou' it.
Click to expand...

Zelda 4 Swords Adventure was pretty fun, but I think it could have been done pretty easily without having to use the GBA's as controllers. The screen could have split when people went into buildings, underground, etc.

I like the island on Animal Crossing, but I never quite understood why I needed a GBA plugged in to have access to an island. What was the benefit of having to do this and not simply having the island built into the game. Maybe there was something you could share with friends or something this way? I never really did anything of that sort.
 
Reality's Fringe said:
I don't know what you guys are on, but I regard the link cable as a sucess simply because of 4 Swords Adventure and Animal Crossing. 4 Swords was one of the best multiplayer games this gen, and having your own island on animal crossing? Fahget abou' it.
Click to expand...
Just posting in agreement that Four Swords Adventures rocks. FF Crystal Chronicles is also a multiplayer masterpiece.
 
Heh, the gamecube has done better this generation than the N64 did the last with less competition. I don't see what all the panic is about.

We're nearing the end of this console cycle and there really hasn't been a must have game (full price anyway) in a while. If profits are down after a holiday quarter and Zelda's release, that would look bad.
 
Everybody is always talking about Nintendo but, what about Xbox they lose money on every console still til this day. Then People say they make it on software, Well last time I checked Nintendo had more Million game sellers then the Xbox, So If Nintendo makes a profit even tho small on every console + they produce more 1st gen. games in a year then the competition(which are Nintendo's best selling games) I don't think they have to much to worry about. Profits fall but it isn't just because Sony and Microsoft are outselling them its because there's more competition in the gaming Market now.

Gamecube is my favorite console and maybe I am biased but when you put the fact you realize Nintendo ain't doing so bad.
 
[quote name='Scorch']I actually thought Revolution was going to include backwards compatibility with other consoles because it'd be their last console.. I mean, what better way to go out than a console that can play games from their entire history?



Do you know the difference between a console and a portable?[/QUOTE]

This theory only works if their online downloadable portion remained intact forever. Otherwise it doesn play all the other systems.

They dont plan on leaving. They plan on not having as much R&D and running on lower sales successfully.
 
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