As Apple Soars, Nintendo Expects First Annual Loss

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Posted by patrickklepek (3479 posts) -

Nintendo argues Apple hasn’t had a big impact on its business, but it’s hard to ignore Apple having the second biggest quarterly earnings of any US company ever this week, and Nintendo (via Reuters) signaling a larger-than-anticipated annual loss for 2011.

According to the report, Nintendo now expects an annual operating loss of 45 billion yen ($575 million), a number far higher than averaged analyst expectations of 4.2 billion yen ($54 million).

That’s a loss nearly ten times previous calculations, underscoring the importance of 3DS experiencing continued success (it had a very strong holiday, thanks to some equally strong software) and a solid Wii U launch (a question mark) this year.

Alongside the expected loss, Nintendo cut its sales forecast for Wii from 12 million to 10 million and 3DS from 16 million to 14 million.

Nintendo has been quiet about Wii U since it saw a mixed reaction at E3 last year, and the company has promised more details on what to expect from the tablet-inspired machine at E3 this year.

Staff
#1 Posted by patrickklepek (3479 posts) -

Nintendo argues Apple hasn’t had a big impact on its business, but it’s hard to ignore Apple having the second biggest quarterly earnings of any US company ever this week, and Nintendo (via Reuters) signaling a larger-than-anticipated annual loss for 2011.

According to the report, Nintendo now expects an annual operating loss of 45 billion yen ($575 million), a number far higher than averaged analyst expectations of 4.2 billion yen ($54 million).

That’s a loss nearly ten times previous calculations, underscoring the importance of 3DS experiencing continued success (it had a very strong holiday, thanks to some equally strong software) and a solid Wii U launch (a question mark) this year.

Alongside the expected loss, Nintendo cut its sales forecast for Wii from 12 million to 10 million and 3DS from 16 million to 14 million.

Nintendo has been quiet about Wii U since it saw a mixed reaction at E3 last year, and the company has promised more details on what to expect from the tablet-inspired machine at E3 this year.

Staff
#2 Posted by martez87 (67 posts) -

Sheeeeeet

#3 Posted by dillonj9889 (52 posts) -

Geez.

#4 Posted by neurochasm (7 posts) -

wow, crazy.

#5 Posted by RE_Player1 (7550 posts) -

I bought a 3DS and games, I did my part.

#6 Posted by Jack268 (3387 posts) -

Eh, it'll work out in the end. Launching the 3DS prematurely was a bad move, but I think they'll take their time with Wii U if they need to.

#7 Edited by Maitimo (177 posts) -

Do you appreciate that by connecting these two unrelated things in your headline and having that throw-away remark in the lead paragraph, you are pushing a specific narrative that feeds into the kind of bizarre console tribalism you wrote a piece on a while back?

Edit: To expand, I suppose: the 3DS lack of success arises from the interaction of a lot of complex factors and cannot be reduced to simply "well, Apple", which while maybe a factor is not the exclusive reason for what's happened nor necessarily the biggest. It's disingenuous to present this story (really two stories) this way, particularly as Apple's results are not fully explainable by their share of the games business.

#8 Posted by BeachThunder (11702 posts) -

@msavo said:

I bought a 3DS and games, I did my part.

Yep.

Also, to whom it may concern, buy Ghost Recon: Shadow Wars; it is a good game.

Online
#9 Posted by 234r2we232 (3181 posts) -

Apple Soars? Is that a new 3DS game?

#10 Posted by OldManLollipop (306 posts) -

console tribalism

#11 Posted by patrickklepek (3479 posts) -

@Maitimo said:

Do you appreciate that by connecting these two unrelated things in your headline and having that throw-away remark in the lead paragraph, you are pushing a specific narrative that feeds into the kind of bizarre console tribalism you wrote a piece on a while back?

Nintendo says they're unrelated, I think they are.

Staff
#12 Posted by cstrang (2381 posts) -

Maybe this will force Nintendo to stop living in their own world where they're untouchable.

#13 Posted by MysteriousBob (6272 posts) -

@msavo said:

I bought a 3DS and games, I did my part.

I've never paid for an Apple product, I did my part.

#14 Posted by Vexxan (4615 posts) -

Don't worry, in the end, Pikachu will save the day!

#15 Posted by martez87 (67 posts) -

I would probably attribute the losses to the weak yen and unexpected price cut rather than to apple’s success. Considering that the 3DS has out-performed the original DS in year one sales during the worst financial disaster in decades.

#16 Posted by gorkamorkaorka (442 posts) -

@msavo said:

I bought a 3DS and games, I did my part.

Hail to you, Champion.

@OldManLollipop said:

console tribalism

I wonder with that price drop of the 3DS, if they're now selling at a loss.

#17 Posted by hagridore (500 posts) -

Remembering that the Wii remote changed from when they first showed it, I hope the Wii U gets a capacitive touchscreen.

#18 Edited by hughesman (312 posts) -

I partially agree Maitimo, Apple has capitalized on multiple huge emerging markets over the past few years while Nintendo is the same game company they have always been. Compairing the two in these terms is a little vague. Maybe compairing Nintendo to specifically the games Apple sells would be a more apt comparison. Either way, a weak 3ds start and letting the wii shrivel on the vine is what is causing losses at Nintendo. Apple selling phones that can play games to lots of people who would have never bought a 3ds to begin with is, in my opinion, a largely over-stated reason for lacking sales in the traditional gaming market.

#19 Posted by Thusian (74 posts) -

I don't know about all this business but, is RE: Revelations out yet? Seriously a lot of Shit gets dropped on Nintendo, a lot of it deserved, but I wonder how many times we remember they are not the games division of a massive entertainment or OS company. It is significant because they have a more focused business model if their game sales don't do it for them that's it. If PS4 tanks for a while, TVs and crap pick up the slack, likewise MS has huge Windows coffers to throw at XBox. I hope Nintendo can become successful again, I hope they do some things we have all wanted them to do, but I hope they don't completely loose their identity in the process.

#20 Posted by Veektarius (4611 posts) -

@Maitimo: It's definitely a less interesting narrative than you might get by examining the shortcomings of Nintendo's marketing strategy and the 3DS device itself.

Online
#21 Posted by CyleMoore (493 posts) -

I still love you Nintendo.

#22 Edited by Sooty (8082 posts) -

This has little to do with Apple and more to do with the following:

Wii sales dropped, lots of casual players are perfectly happy with their original DS', and the 3DS had a terrible launch. The 3DS is going to be a money machine soon enough, I recall the DS having a rough launch too, at least with games.

#23 Posted by TheHBK (5463 posts) -

@patrickklepek said:

@Maitimo said:

Do you appreciate that by connecting these two unrelated things in your headline and having that throw-away remark in the lead paragraph, you are pushing a specific narrative that feeds into the kind of bizarre console tribalism you wrote a piece on a while back?

Nintendo says they're unrelated, I think they are.

You better believe they are related. I saw a little kid, probably 4 years old with a damn iPod touch, playing on it. Obviously he got that for Xmas. Back in my day that kid would had a GameBoy, or if he was poor/rich, a Game Gear. Times a changing.

#24 Edited by wefwefasdf (6729 posts) -

The Wii U will fix all of this! I'm still trying to be excited for it.

#25 Posted by HatKing (5832 posts) -
@patrickklepek

@Maitimo said:

Do you appreciate that by connecting these two unrelated things in your headline and having that throw-away remark in the lead paragraph, you are pushing a specific narrative that feeds into the kind of bizarre console tribalism you wrote a piece on a while back?

Nintendo says they're unrelated, I think they are.

I think Klepek is absolutely right. I know it's just anecdotal, but this past year I needed a new phone and I had a desire to dive into 'on the go' gaming. I solved both by buying an iPhone. I imagine I'm not the only person like this.
#26 Edited by SimplyTron (77 posts) -

Pay attention kids, this is what real news reporting looks like. Facts, a little speculation maybe. Not Making a slightly funny joke and running it into the ground in every way possible. Good job Patrick, love you man.

#27 Posted by JLF1 (33 posts) -

So another pro-Apple thread then Patrick?

#28 Posted by jred250 (105 posts) -

@Maitimo said:

Do you appreciate that by connecting these two unrelated things in your headline and having that throw-away remark in the lead paragraph, you are pushing a specific narrative that feeds into the kind of bizarre console tribalism you wrote a piece on a while back?

Edit: To expand, I suppose: the 3DS lack of success arises from the interaction of a lot of complex factors and cannot be reduced to simply "well, Apple", which while maybe a factor is not the exclusive reason for what's happened nor necessarily the biggest. It's disingenuous to present this story (really two stories) this way, particularly as Apple's results are not fully explainable by their share of the games business.

Yeah, I am a big Patrick fan, but I really did not like the way these things were paired together. It left a bad taste in my mouth, bleh....

#29 Posted by Veiasma (194 posts) -

Even more interested in how the Vita does now. (And I'm not optimistic.)

Smart-phones and tablets are the future, like it or not.

#30 Posted by Dany (7887 posts) -

The two topics are clearly related. Kids do not want a PSP or a DS. The decrease of dedicated handheld titles and the increase of iOS touch devises are related.

#31 Posted by Rirse (258 posts) -

Maybe this is because the Wii was pretty much dead this Holiday except for Skyward Sword?

#32 Posted by Sergio (2053 posts) -

@TheHBK said:

@patrickklepek said:

@Maitimo said:

Do you appreciate that by connecting these two unrelated things in your headline and having that throw-away remark in the lead paragraph, you are pushing a specific narrative that feeds into the kind of bizarre console tribalism you wrote a piece on a while back?

Nintendo says they're unrelated, I think they are.

You better believe they are related. I saw a little kid, probably 4 years old with a damn iPod touch, playing on it. Obviously he got that for Xmas. Back in my day that kid would had a GameBoy, or if he was poor/rich, a Game Gear. Times a changing.

I saw a kid playing a DS. Clearly they're not related.

#33 Posted by RE_Player1 (7550 posts) -

I'm somewhat of an Apple fan, I enjoy the occasional game and I read/buy comics on my iPad, but I hope they royally screw up in the next couple years because I do not like where portable gaming is going.

#34 Posted by Tesla (1908 posts) -

It's all about the price of the software. It amazes me that Nintendo still doesn't get that.

No dedicated handheld will ever be successful again unless the games drop down to the neighborhood of 5-15 dollars to compete with not only the iPhone, but XBLA and PSN downloads as well.

#35 Posted by Shadow (4977 posts) -

They really, really need to call the Wii U something else. That will at least get it across to people that it's a different system. For the longest time, I though that was just the name they were giving to their new overly iPad-like controller

#36 Posted by TehFlan (1944 posts) -
@jred250 said:

@Maitimo said:

Do you appreciate that by connecting these two unrelated things in your headline and having that throw-away remark in the lead paragraph, you are pushing a specific narrative that feeds into the kind of bizarre console tribalism you wrote a piece on a while back?

Edit: To expand, I suppose: the 3DS lack of success arises from the interaction of a lot of complex factors and cannot be reduced to simply "well, Apple", which while maybe a factor is not the exclusive reason for what's happened nor necessarily the biggest. It's disingenuous to present this story (really two stories) this way, particularly as Apple's results are not fully explainable by their share of the games business.

Yeah, I am a big Patrick fan, but I really did not like the way these things were paired together. It left a bad taste in my mouth, bleh....

I kind of agree. Has Apple had an effect on the 3DS's success? Almost certainly, but I think there are bigger reasons the 3DS hasn't done too well.
#37 Posted by Asadasa5 (67 posts) -

@Maitimo said:

Do you appreciate that by connecting these two unrelated things in your headline and having that throw-away remark in the lead paragraph, you are pushing a specific narrative that feeds into the kind of bizarre console tribalism you wrote a piece on a while back?

Edit: To expand, I suppose: the 3DS lack of success arises from the interaction of a lot of complex factors and cannot be reduced to simply "well, Apple", which while maybe a factor is not the exclusive reason for what's happened nor necessarily the biggest. It's disingenuous to present this story (really two stories) this way, particularly as Apple's results are not fully explainable by their share of the games business.

Agreed. Correlation does not equal causation.

#38 Posted by JLF1 (33 posts) -

@SimplyTron:

Eh, not really.

There's a lot of speculation on Patricks part on this. Sure, the numbers he is presenting are correct but how these companies reached these numbers are pure speculation.

The stronger than anticipated Yen and the extreme drop in Wii sales aren't even brought up. Nintendo need the 3DS and Wiiu to be successes otherwise they are out of business but that has always been the case for Nintendo as gaming is all they do.

#39 Posted by Thusian (74 posts) -

@Tesla: The eshop has gotten better, not as good as the iTunes store, but some quality titles none the less and those games only cost a few dollars.

#40 Posted by VWGTI (1919 posts) -

Silly headline. Come on, man.

#41 Posted by phrali (646 posts) -

GB is biased. Patrick hates Nintendo and loves Apple. All these numbers are inaccurate. I love Nintendo. Mario is the best thing ever. 3DS will make a bajillion dollars some day.

am i doing it right?

#42 Edited by Etnos (245 posts) -

@jred250 said:

@Maitimo said:

Do you appreciate that by connecting these two unrelated things in your headline and having that throw-away remark in the lead paragraph, you are pushing a specific narrative that feeds into the kind of bizarre console tribalism you wrote a piece on a while back?

Edit: To expand, I suppose: the 3DS lack of success arises from the interaction of a lot of complex factors and cannot be reduced to simply "well, Apple", which while maybe a factor is not the exclusive reason for what's happened nor necessarily the biggest. It's disingenuous to present this story (really two stories) this way, particularly as Apple's results are not fully explainable by their share of the games business.

Yeah, I am a big Patrick fan, but I really did not like the way these things were paired together. It left a bad taste in my mouth, bleh....

2 unrelated things!? You'r mind scope got to be this big: -:- if you cant see the mobil gaming market was being disputed by this 2; Nintendo lost long ago.

#43 Posted by Sergio (2053 posts) -

I have a friend who only has an old iPod and an Android phone. While he has a DSi, he has no interest in getting a 3DS. He's just not in the market for one. He will play the occasional mobile game while waiting for the movie to start at the theater, but this doesn't mean he's contributing to the rise of mobile gaming at the expense of dedicated handhelds - just the latter.

My sister and brother-in-law purchased two iPhones (and they have two iPads as well). They own 0 games on them. So while they contribute to the money being made by Apple, it hasn't been at the expense of Nintendo. (They do own a Wii.)

This is all anecdotal, much like anyone claiming that they're seeing kids with iPod touches or iPhones instead of 3DS. While these devices (along with Android) have taken some of the casual market from the DS/3DS, that doesn't mean it's as big of a hit as some claim. Nor does it bode ill for dedicated handhelds.

#44 Posted by stinky (1544 posts) -

@neurochasm said:

wow, crazy.

is it really? c'mon.

#45 Posted by blacklab (1525 posts) -

@Maitimo said:

Do you appreciate that by connecting these two unrelated things in your headline and having that throw-away remark in the lead paragraph, you are pushing a specific narrative that feeds into the kind of bizarre console tribalism you wrote a piece on a while back?

Edit: To expand, I suppose: the 3DS lack of success arises from the interaction of a lot of complex factors and cannot be reduced to simply "well, Apple", which while maybe a factor is not the exclusive reason for what's happened nor necessarily the biggest. It's disingenuous to present this story (really two stories) this way, particularly as Apple's results are not fully explainable by their share of the games business.

Agree - drawing that conclusion is outright wrong. Correlation does not equal causation. i.e., I took a shit this morning, and the sun came up! When I take a shit the sun comes up!

#46 Posted by Thor_Molecules (732 posts) -

Giant Bomb doesn't need silly headlines like these, this isn't Engadget.

#47 Posted by huser (1044 posts) -

@Etnos said:

@jred250 said:

@Maitimo said:

Do you appreciate that by connecting these two unrelated things in your headline and having that throw-away remark in the lead paragraph, you are pushing a specific narrative that feeds into the kind of bizarre console tribalism you wrote a piece on a while back?

Edit: To expand, I suppose: the 3DS lack of success arises from the interaction of a lot of complex factors and cannot be reduced to simply "well, Apple", which while maybe a factor is not the exclusive reason for what's happened nor necessarily the biggest. It's disingenuous to present this story (really two stories) this way, particularly as Apple's results are not fully explainable by their share of the games business.

Yeah, I am a big Patrick fan, but I really did not like the way these things were paired together. It left a bad taste in my mouth, bleh....

2 unrelated things!? You'r mind scope got to be this big: -:- if you can see the mobil gaming market was being disputed by this 2; Nintendo lost long ago.

Really? Cause up till last year they were making money hand over fist and their stock was doing alright down from raging insane, having been inflated by all that money hand over fist they had been making for half a decade. What exactly is the basis for the claim that Nintendo lost long ago? Do you mean the Playstation era where they went from market leader to significant player but still an also ran? I can't really argue that I guess, but if that's what you meant you might want to make that more clear.

I don't especially have a dog in the race, but the simple fact that the 3DS, helped by a significant price drop, hurt by a worldwide global recession, has outsold the previous monster on the block, the DS, in sales to date from their respective launches sorta says it's doing fine.

#48 Posted by Galiant (2181 posts) -

3DS? Strong software? What?

#49 Posted by theuselessgod (299 posts) -

I bought an iPhone 4S and passed on the 3DS. I'm part of the problem. :(

#50 Posted by blueduck (964 posts) -

These two events have nothing to do with each other and it's a little baffling that this story was even written. Nintendo is dealing with the impacts of a saturated market.

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