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Nintendo Losses Continue, But 3DS Now Profitable

Company struggling to gain footing after launch of 3DS.

What what seemed like a slam dunk for Nintendo has proved a difficult pivot for the company.

Nintendo will suffer a few days of rough headlines, as the company announced a quarterly loss of 17.23 billion yen ($220 million).

On the bright side? It’s less than Nintendo lost last year, and the 3DS is now apparently a profitable machine, as of today.

Nintendo has historically made money on each hardware unit sold, but with the drastic cost cutting actions taken last summer, Nintendo has been unable to rely on one of its financial constants.

The company sold 1.86 million 3DS units in the last quarter.

The next year will be extremely important to Nintendo, as the company moves toward the business of making money on the back of a profitable 3DS and the launch of the Wii U later this year.

Has it really been six years since the original Wii?

Patrick Klepek on Google+
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Posted by patrickklepek
What what seemed like a slam dunk for Nintendo has proved a difficult pivot for the company.

Nintendo will suffer a few days of rough headlines, as the company announced a quarterly loss of 17.23 billion yen ($220 million).

On the bright side? It’s less than Nintendo lost last year, and the 3DS is now apparently a profitable machine, as of today.

Nintendo has historically made money on each hardware unit sold, but with the drastic cost cutting actions taken last summer, Nintendo has been unable to rely on one of its financial constants.

The company sold 1.86 million 3DS units in the last quarter.

The next year will be extremely important to Nintendo, as the company moves toward the business of making money on the back of a profitable 3DS and the launch of the Wii U later this year.

Has it really been six years since the original Wii?

Staff
Edited by Agent47CSim2

hey

EDIT: YESSSSSSSSSSSSSSS I wasn't even trying either! :D on topic that's pretty bad, what could nitendo have possibly done with all their wii money...

Posted by MooseyMcMan

Let's hope the 3DS keeps on selling then.

Moderator
Edited by M_Shini

Proof read ya stuffs!

Kinda insane to think Someone like Nintendo are making a loss with how decent the 3ds has sold ect, its more difficult than i even imagine in that market.

Posted by BeachThunder

Maybe they need to release more (good) games for the 3DS...but I'm no business person, so I don't know...

Posted by Hosstile17

"It’s less than Nintendo lost year" Prolific.

Posted by Nephrahim

I'm sure someone else can explain this but... if the 3DS is making money... what exactly are they losing money on? Just R&D for the Wii U? Advertising and trade shows and getting ready to roll it out? I can't imagine they're LOSING money on the Wii since it must cost 10 bucks to make.

Posted by The_Nubster

I think you may have minced your words in the final line.

I really do hope Nintendo starts to do well, but I just can't see the WiiU being the hit they're hoping it to be.

Posted by gaminghooligan

wish Nintendo would go back to making games like super metroid. Then I would throw money at them, also the WII U doesn't seem to promising atm

Posted by MythDarK

@Patrick Klepek:

"On the bright side? It’s less than Nintendo lost year, and the 3DS is now apparently a profitable machine, as of today."

and

"Has it really been since years since the original Wii?"

Posted by Deusx

I´m just glad the 3DS is getting games now. I´m in love with it. Can´t wait to see what Nintendo has in store for the next year.

Edited by Skanker

@M_Shini said:

Proof read ya stuffs!

Kinda insane to think Someone like Nintendo are making a loss with how decent the 3ds has sold ect, its more difficult than i even imagine in that market.

You too, homie. It's etc., not ect.. Ec tetera? Come on, step it up.

Posted by OllyOxenFree

What what.

Posted by embryo69

Give Patrick a break. He's gone through some shit recently.

Posted by GeneralDAS

I said what what, in the butt.

Posted by Ryuku_Ryosake

@SamDrugbringer said:

I'm sure someone else can explain this but... if the 3DS is making money... what exactly are they losing money on? Just R&D for the Wii U? Advertising and trade shows and getting ready to roll it out? I can't imagine they're LOSING money on the Wii since it must cost 10 bucks to make.

That's like trying to explain how Nintendo has apparently already spent all of the money they made on the Wii. Sure I guess R&D for the 3DS and WiiU was probably fairly more expensive then regular R&D on a console with no fancy Nintendo gimmick. But still it just makes no sense. I guess they had a lot of coke parties or something.

Posted by DoctorWelch

C'mon guys, I feel like at least half of Patrick's articles have some kind of mistake in them. I actually don't really put the blame on Patrick as much as I do the other guys that need to proof read his stuff for him before it goes up. I understand it's really easy to have simple mistakes in your writing, it happens to me all the time, but whoever is proof reading these things needs to get on top of it.

Posted by RecSpec

The loss of interns hurts us all. 
 
On topic though, I bet Nintendo makes a ton of money off of the 3DS XL

Posted by Daniel_Newton

@OllyOxenFree said:

What what.

I'm starting to think Patrick's lack of proofreading is some sort of intentional joke at this point.

In which case; well done Patrick.

Don't get me wrong though, Patrick's great.

Posted by BoFooQ

who are all these people buying 3DS's? I would love to see numbers sold in america and japan. I can't see myself ever buying a portable game system ever again, my phone is good enough for that.

Posted by paulunga

Are you drunk, Trick? Proofread your goddamn articles.

Posted by Curufinwe

Giant Bomb should hire a copy editor.

Posted by prestonhedges

@DoctorWelch said:

C'mon guys, I feel like at least half of Patrick's articles have some kind of mistake in them. I actually don't really put the blame on Patrick as much as I do the other guys that need to proof read his stuff for him before it goes up. I understand it's really easy to have simple mistakes in your writing, it happens to me all the time, but whoever is proof reading these things needs to get on top of it.

Why hire a proofreader when you can just put up a terrible article, read the comments, and fix it later? Seems to be the way nowadays.

Edited by Phoenix87

Shitty companies deserve to fail and its sad indeed since I used to love Nintendo.

Edited by mariussmit

Patrick, it is poor form that you cannot be bothered to proofread a six sentence story. What does "Has it really been since years since the original Wii?" mean exactly?

Posted by gaminghooligan

@BoFooQ said:

who are all these people buying 3DS's? I would love to see numbers sold in america and japan. I can't see myself ever buying a portable game system ever again, my phone is good enough for that.

It surprised me also, I work in a game store and we sell like one every couple weeks.

Posted by Turambar
@BoFooQ said:

who are all these people buying 3DS's? I would love to see numbers sold in america and japan. I can't see myself ever buying a portable game system ever again, my phone is good enough for that.

Funny, I don't see myself ever playing a game on a god damn phone unless something really drastic happens and phones start having actual buttons.
Posted by patrickklepek

@embryo69 said:

Give Patrick a break. He's gone through some shit recently.

It's all good. :)

Staff
Posted by mtcantor

Nintendo is in some serious trouble. The massive investment they are going to make manufacturing the Wii U HAS to pay off, or they are going to have to make some big changes.

Posted by Sooty

@BoFooQ said:

who are all these people buying 3DS's? I would love to see numbers sold in america and japan. I can't see myself ever buying a portable game system ever again, my phone is good enough for that.

Plenty of people because gaming on a real handheld is a superior experience to phones. I say this as a smartphone and iPad owner.

Posted by White_Silhouette

I'm curious to see how/if this will affect the price of the WiiU. Will they be willing to sell it at a loss in the beginning to move units. Or will they make sure they make money on each console to ensure they don't have a repeat of the 3DS issue.

Posted by Turambar
@SamDrugbringer said:

I'm sure someone else can explain this but... if the 3DS is making money... what exactly are they losing money on? Just R&D for the Wii U? Advertising and trade shows and getting ready to roll it out? I can't imagine they're LOSING money on the Wii since it must cost 10 bucks to make.

well, the article makes no real mention of just how recently the 3ds started making money, so it might not have really figured much into the quarter.  Also yeah, R&D as well as just the general upkeep for running the company is sure to eat into it a lot.  While I'm sure they're making money per Wii sold, Wii's aren't exactly selling much anymore.  NDP numbers for March had it selling at half as much as the 360 and PS3.
Posted by Shaanyboi

@Turambar said:

@SamDrugbringer said:

I'm sure someone else can explain this but... if the 3DS is making money... what exactly are they losing money on? Just R&D for the Wii U? Advertising and trade shows and getting ready to roll it out? I can't imagine they're LOSING money on the Wii since it must cost 10 bucks to make.

well, the article makes no real mention of just how recently the 3ds started making money, so it might not have really figured much into the quarter. Also yeah, R&D as well as just the general upkeep for running the company is sure to eat into it a lot. While I'm sure they're making money per Wii sold, Wii's aren't exactly selling much anymore. NDP numbers for March had it selling at half as much as the 360 and PS3.

It's making money as of today. Says so in the article.

Posted by Turambar
@Shaanyboi said:

@Turambar said:

@SamDrugbringer said:

I'm sure someone else can explain this but... if the 3DS is making money... what exactly are they losing money on? Just R&D for the Wii U? Advertising and trade shows and getting ready to roll it out? I can't imagine they're LOSING money on the Wii since it must cost 10 bucks to make.

well, the article makes no real mention of just how recently the 3ds started making money, so it might not have really figured much into the quarter. Also yeah, R&D as well as just the general upkeep for running the company is sure to eat into it a lot. While I'm sure they're making money per Wii sold, Wii's aren't exactly selling much anymore. NDP numbers for March had it selling at half as much as the 360 and PS3.

It's making money as of today. Says so in the article.

I take that as a figure of speech, not statistics.
Posted by Abendlaender

Man, I'm not even a Nintendo Fan but I sure hope they'll do alright. Even though I personally don't "need" Nintendo, the industry certainly does I think.

Online
Posted by Little_Socrates

Really hoping people get their hands on the Wii U and enjoy it as much as I did. Believe it or not, that tablet feels really great.

Posted by MonkeyKing1969

I hate to say it but I wonder if 3DS is profitable or not. In corporate bookkeeping you can move losses from one division of the company to another. In other words you take millions of yen in debt and just shift it off the 3DS books then declare there is no debt....no debt there at least.

I rather doubt 3DS is now profitable, but you would need a forensic search of Nintendo's books to know for sure.

Posted by Haziqonfire

Seem's like Nintendo's plan to get back to where they were is working, with the 3DS again being profitable, the 3DS XL coming out next month and the Wii U on the horizon. I

I really am interested though to find out exactly how much they must have spent on Wii U R&D.

Posted by AndrewB

It's hard to believe that Nintendo was losing money on the 3DS, but I guess that must have been due to the entirely unstandard display. I guess that's why they're downplaying 3D. Sucks because the 3DS is the one thing I've seen that's made me think that 3D could be a decent proposal for the future transition to the actual hologram.

Posted by MikkaQ

@BoFooQ said:

who are all these people buying 3DS's? I would love to see numbers sold in america and japan. I can't see myself ever buying a portable game system ever again, my phone is good enough for that.

Although by all means I have no use for one cause of my phone, nor do I like portable systems at all, but I bought one cause... ugh I don't know, it's just weird to not buy the Nintendo console.

I can't imagine there are enough me's out there to make it profitable though so I do wonder who's buying it. Kids, I guess.

Posted by Heartagram

Man I wonder what will happen to Nintendo if the Wii-U Fails? I wonder how many times they can put out a mediocre console before they end up having to shut the console division down like Sega. Unlike Sonic however Mario will sell no matter what console its on so maybe one day that will happen. Imagine if you could just play Zelda with an Xbox or PS3.

Posted by SmilingPig
Posted by Rasgueado

So many writers in the room. Good to know everyone can spot the really obvious mistakes. Now go write a book all of you glorious little bastards!

Posted by RedRoach

@SamDrugbringer said:

I'm sure someone else can explain this but... if the 3DS is making money... what exactly are they losing money on? Just R&D for the Wii U? Advertising and trade shows and getting ready to roll it out? I can't imagine they're LOSING money on the Wii since it must cost 10 bucks to make.

Nintendo is a huge company. There are thousands of salaries to pay for employees, plus they have to pay the bills, electric bills, leases for their offices. And that's before you count all the money going into Wiiu manufactering, funding for game development and things like E3 and TGS. While Nintendo may be making money off of the 3DS, it's not enough to support a company the size of Nintendo. If the Wiiu isn't a smash success they're going to have to make some big changes to the company as a whole. That may not mean going third party, but it will, at the very least force the company to shrink and cut costs and scale down.

Posted by Nephrahim

@RedRoach said:

@SamDrugbringer said:

I'm sure someone else can explain this but... if the 3DS is making money... what exactly are they losing money on? Just R&D for the Wii U? Advertising and trade shows and getting ready to roll it out? I can't imagine they're LOSING money on the Wii since it must cost 10 bucks to make.

Nintendo is a huge company. There are thousands of salaries to pay for employees, plus they have to pay the bills, electric bills, leases for their offices. And that's before you count all the money going into Wiiu manufactering, funding for game development and things like E3 and TGS. While Nintendo may be making money off of the 3DS, it's not enough to support a company the size of Nintendo. If the Wiiu isn't a smash success they're going to have to make some big changes to the company as a whole. That may not mean going third party, but it will, at the very least force the company to shrink and cut costs and scale down.

It seems to me like if they're so huge they're taking these kinds of losses between product cycles, they're going to have to scale down one way or another soon. But then, Microsoft and Sony take them too, they just cover them up with other divisions.

Might be a sign that the independent gaming company that makes it's own console IS ending, when I think of it like that.

Posted by Lurkero

I'm starting to think that Nintendo desperately needs to get things right with WiiU or they will start some kind of Atari or Sega decline.

@embryo69 said:

Give Patrick a break. He's gone through some shit recently.

That doesn't explain the typographical errors before that stuff. Could it be that either Patrick or the editor is dyslexic and does not know it.

Posted by TheSlothKing

@SamDrugbringer: Nintendo isn't an idependent company.

Posted by blurienh

I really worry for Nintendo, I hope they're not staking their future on the wii-u because I just don't see it being a hit (in very short casuals will see it as an add on which they don't want because it makes things too complicated and hardcore don't want more current gen) and portable machines could be downwards slope because of 69p phone/pad games.

Also typos in Patrick's articles are getting annoying because half the comments are about them (i'm not critisising Patrick or the people who comment on them, I can't spell for toffee)

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