Nintendo reports quarterly loss 2014!!!!!

[TheSonicGamer201X]

Nintendo Co Ltd said it expects an operating loss of 35 billion yen ($336 million) for the year to end-March, citing much weaker-than-expected sales of its Wii U and 3DS game machines during the crucial holiday season.
The move reverses its previous forecast of a 100 billion yen profit and would mark the third consecutive year of operating losses for the embattled company, falling drastically short of the average estimate of a 54.7 billion yen profit in a survey of 18 analysts by Thomson Reuters I/B/E/S.

The warning comes just three months after the creator of the Super Mario franchise stood by its sales projections for the Wii U, counting on the console to revive its fortunes amid cut-throat competition from Microsoft Corp's new XBox One and Sony Corp's recently released PlayStation 4.

"We failed to reach our target for hardware sales during the year-end, when revenues are the highest," the Osaka-based company said in a statement. "As a result, the sale of high-margin software fell far short of our projections."

The dismal sales of the Wii U mark a major setback for Nintendo President Satoshi Iwata, who has repeatedly had to scale back sales projections for the console as it failed to emulate the success of its hugely popular predecessor, the Wii.

Iwata told a briefing a year ago, when the company warned of its second consecutive year of operating losses, that he had "made a commitment" to achieve an operating profit of 100 billion yen or more in the year to March 2014.

"The fact that the 'Wii U strategy' has failed is disappointing and will likely trigger a sell-off as soon as the market opens," said Makoto Kikuchi, chief executive of Myojo Asset Management.

"The company appears to have failed to differentiate the Wii U from the Wii," he said, adding that his own 10-year-old son, who owns a Wii and DS, had shown no interest in the Wii U.

Nintendo on Friday also warned of a net loss of 25 billion yen for the year ending on March 31, a substantial reversal from its prior projection of a 55 billion yen profit. It now expects revenues of 590 billion yen, down 36 percent from its prior forecast. It cut its full-year dividend to 100 yen from 260 yen.

The company slashed its global Wii U sales forecast for the business year by almost 70 percent, to 2.8 million units from 9 million, and its 3DS sales forecast to 13.5 million units from 18 million units.

Nintendo shares have fallen almost 10 percent since hitting a two-and-a-half year high of 15,880 yen on January 10. The stock climbed 55 percent in 2013, in line with a 57 percent rally by the benchmark Nikkei average but underperforming a 91 percent surge by rival Sony.



Read more: http://www.businessinsider.com/nintendo-reports-quarterly-loss-2014-1#ixzz2qnk6fmaz

[Elija2]

Nintendoomed.

[FlashTheHedgehog123]

336 million doesn't mean much, especially with Nintendo.

[Hakudamashi]

Nintendoomed.

You'd love that wouldn't you?

[Elija2]

336 million doesn't mean much, especially with Nintendo.

Maybe, but they're only gonna keep losing money. The Wii U is done for and if the 3DS couldn't fight off the massive losses from the Wii U then Nintendo are basically screwed for the rest of the generation.

You'd love that wouldn't you?

No, I'd like Nintendo to smarten up and release a competitive console.

[shadowDOESrock]

And it's all the Wii U's fault
Literally.

[Ye Olde Swagfag]

Well we can't exactly say the Wii U was going swimmingly before this point.

[shadowDOESrock]

Well we can't exactly say the Wii U was going swimmingly before this point.

Lol, Nintendo has been writing losses since the day the wii u came out.

[TheGameNinja]

Nintendo should:

a) Re-release the Wii U, now branded something like Wii 2 in order to dismiss consumer confusion
b) Release a new console on par with the PS4 and Xbone, it must be fully backward compatible with Wii U software but NOT use the Game Pad as the default controller
c) Ride out this generation and be sure to be on the same level as other consoles next time

[Elija2]

Nintendo should:

a) Re-release the Wii U, now branded something like Wii 2 in order to dismiss consumer confusion

I honestly don't think there's as much consumer confusion around the Wii U as people think there is. When the 3DS originally released to slow sales people blamed it on consumers thinking it was a marginal upgrade to the DS with 3D added and not a totally new handheld with new hardware. Of course once the price was lowered and it got more games it fared much better.

With the Wii U they're pretty much screwed. They can't lower the price any more because they're already selling it at a loss and third parties have completely abandoned it. There's nothing they can do to save it.

[TheGameNinja]

I honestly don't think there's as much consumer confusion around the Wii U as people think there is. When the 3DS originally released to slow sales people blamed it on consumers thinking it was a marginal upgrade to the DS with 3D added and not a totally new handheld with new hardware. Of course once the price was lowered and it got more games it fared much better.

With the Wii U they're pretty much screwed. They can't lower the price any more because they're already selling it at a loss and third parties have completely abandoned it. There's nothing they can do to save it.

I was in a GameStop once and overheard a conversation between a boy and his mom. The boy insisted that the Wii U required the Wii to function (I'm assuming he believed the Wii U to only be the Game Pad) while his mom was saying it didn't matter because the Wii U was bundled with a Wii. While his mom was the least wrong, since at least listening to her wouldn't have affected their purchase, both of them obviously had no idea what the Wii U was.

There is a lot of confusion over what the Wii U is.

[jkid101094]

Makes a guy kinda wonder about why no one claims the Xbox One is the first one.

[shadowDOESrock]

Makes a guy kinda wonder about why no one claims the Xbox One is the first one.

Because it was marketed properly.

[Hakudamashi]

Makes a guy kinda wonder about why no one claims the Xbox One is the first one.

Cause it was marketed as an evil conspiracy spying VCR, not a controller for the original Xbox.

[shadowDOESrock]

Cause it was marketed as an evil conspiracy spying VCR, not a controller for the original Xbox.

xDDD