On Friday Nintendo slashed its profit forecasts from ¥55 billion to -¥25 billion and President Satoru Iwata said the company was considering a “new business strategy.”
“The way people use their time, their lifestyles [and] who they are have changed,” Mr. Iwata said. “If we stay in one place, we will become outdated.”
That statement does seem to suggest a move to the global phenomenon of smartphone gaming, but apparently not.
“The spread of smart devices does not spell the end of game consoles. It’s not that simple,” President Satoru Iwata said. “The key is to figure out a way to use smartphones to make people aware of Nintendo’s games, and encourage them to try out the console version of the games. It doesn’t mean that we should put Mario on smartphones.”
Quite how Nintendo will make gamers aware of Nintendo titles via their smartphones and then persuade them to put down the very same hardware, packed full of free games, and buy a $170 console with games that cost $40 will be somewhat of a marketing miracle.
The Wii U has flopped badly but the 3DS is still selling well and Nintendo get all the profits from every Mario game and console. If they moved the be-hatted plumber to iOS, or even PS4, Apple or Sony would take a chunk of the profits.
Nintendo’s stock has plummeted 17% on Monday but has been noted that the company is pouring money into its research and development budget, perhaps to create a successor to the Wii U.
Source: WSJ
Blair Inglis
The 3DS was really worrying at first and is now doing fine. The Wii U will be the same. Donkey Kong next month, then Mario Kart 8 not too long around the corner, followed by Super Smash Bros, all of which have proven successful for GameCube and Wii.
bunimomike
I don’t think the comparison can be made as the mobile gamers were gamers to begin with. The original Wii crowd had a huge number of folk who weren’t really into gaming but enjoyed the casual, wave-your-hands-around gaming that came with the Wii. Those sorts of people are obviously ambivalent to the Wii U as so many people I know still have a Wii but haven’t moved on to the Wii U.
I don’t doubt things will get better but a simple “X happened last time so Y will happen this time” isn’t really the whole picture.
Cron_13
Totally agree Blair.
The GameCube sold just shy of 22 million over its life span – they expect Wii U to do around 25 million now. Its not the same as ps4/xbox one, its a far more niche market – tempting Nintendo fans to buy one will be made easier with those games mentioned that’s what’s lacking atm.
Nintendo will be fine, as always and the games will continue to be great. All the media reports by the likes of Gamespot are a yawn fest. I can understand Nintendo’s stand on their brand.
Unfortunately nintendo have paid the price of the Wii’s success with stupid expectations from an uneducated market place.
bunimomike
In all fairness, Cron, the expectations were from Nintendo themselves. They’ve had to slash forecasts.
However, if it’s a profitable console over all (when you look at the life cycle) then good on them. I’ve always been curious about the PSP (and the Vita) to see when that started turning a profit, etc.
Thing is, with over 100 million Wii sold, it feels like such a slump to see the new revised figures. Just like Sony must’ve thought “ugh” when comparing PS3 figures to PS2’s.
Cron_13
Yeah that’s a fair point, but we don’t know what was promised internally. I’m guessing that they’d expected some of the big hitter titles like Mario Kart and Smash Bros to already be out in order for the analysts to come up with the 9 million or whatever the original forecast. Only Nintendo know that I guess.
bunimomike
Either way, it’s unsettling for their forecasts and damages confidence in the company to perform. Add to this that the media, itself, compounds the problem as we’ve seen with the rapidity of internet reporting. God knows, hearsay and whispers spiral out of control on the ol’ interweb. Negative momentum takes a while to address. Years, sometimes. Once again… Sony, for example.
Tuffcub
“Nintendo will be fine, as always and the games will continue to be great” – Yes they are great. But they aint selling. Just look at the abysmal placing for Super Mario 3D world – No 14 and then it vanished.
Everyone has changed gear, developers and publishers, and Sony and Microsoft, have now embraced Free to play, mobile gaming and many other trends.
Nintendo are just doing Nintendo. That’s it, and that may have worked in the past but not anymore.
Everyone is online, all the time, and Nintendo dont even know what online is (http://www.eurogamer.net/articles/digitalfoundry-2014-secret-developers-wii-u-the-inside-story)
At some point Mario and Zelda will stop selling, much the same way CoD will eventually die. Activision have Skylanders and other new franchises in the works, Nintendo don’t, they keep on doing the same thing.
Analysts will look for future performance, not past performance, and at the moment Ninty are looking very shakey on that ground. As we have already seen, share places will plumment and in the end, that’s what will drive change. God knows how many copies of Mario Wii U were sold in the UK but im guessing not more than a couple of thousand. If Mario went on Itunes then he would sell hundreds of thousands, even if they made him a fiver rather than 99p.
Ninty have to change, they’re already looking like a last gen dinosaur to investors.
Cron_13
Comparing apples and oranges…
1 in 3 Wii U games sold in the UK that week was Super Mario 3D World where as 1 in 25 PS4 games sold was Knack. Knack was the 7th best selling PS4 game, Mario was the top Wii U game.
The marketing was poor though and whoever thought it should be released the same day as the PS4 launch in the UK should be shot! Games will drive sales and as far as I’m concerned when/if Nintendo nail a decent game library on the Wii U the sales will pick up and the profit will happen.
Abandoning their whole marketing strategy of their gaming brand on the back of the recent forecast changes would be insane.
tactical20
Just have to keep waiting with fingers firmly crossed then. Mario/Mario Kart/Zelda/Metroid/etc.. on PS4 would be simply amazing.
DrDamn
I think it’s largely a good idea that they steer clear of trying to release their games on phones. It’s a very different market and not so suited to their games or how they want to sell them. I think the best idea for them would be ditching the home console market and concentrating on hand helds – with a view to a portable device you can link up to your TV as a successor to the 3DS a few years down the line. They could couple that with releasing HD back catalogue on other home consoles (X1/PS4).
Whilst I’m wanting a moon on a stick I reckon they could have their teams produce some new IP for other home consoles too :)
brnconnell
Would love to see a genuine hd Pokemon, I’d jump in on a wii u then.
Starman
Stick Mario on iPhones and they’ll make more money than they have from the WiiU on its own.
Cron_13
And what about the knock on effect on Nintendo 3DS sales? Its not as easy as saying “release mario on iPhone”.
Starman
Well we won’t know until they do it, I’m just think its the best option. Would it stop someone buying a 3ds?
Moonpie
If I was Nintendo I’d release one big game on XBONE and PS4, then 6-9 months later release another title on the WII:U with some sort of promotion.
XIII_WarMachine
The first system I owned was an SNES that I bought it at a pawn shop when I was 12. I still love Nintendo and I currently own a 3DS. However, there are minor things that annoy me about the Wii U and 2DS. I understand Nintendo released the Wii U in order to compete with Sony and Microsoft. My first problem is with the Wii U and their lack of games. Yes I understand their main franchase is all about Mario, Zelda, etc. There have not been many, if any games that make me want to buy a Wii U. Also I purchased a Wii while I currently owned a PS3. I had a few games for the Wii but ended up selling it all to a friend because I ended up playing the PS3 more. Also due to the fact that the Wii did not have enough games in my opinion. If you own a Wii get Fire Emblem: Radiant Dawn and of course Smash Bros immediately!
Now my problem with the 2DS. The shape and design is awful. The best design in terms of Nintendo’s handheld would be the Gameboy Advanced SP. Yes, that beautifully boxed shaped device that sat so perfectly within my hands. Granted I understand the 2DS is also marketed for people that aren’t able to purchase a 3DS. However, the design is awkward and just puts a bad taste in my mouth.
Overall, I have always noticed plenty of Wii U systems sitting idly in the glass boxes at ToysRus, BestBuy, Target and other locations. I also even asked if it was a display box for show but sadly none of them were. Once again I’m only one person out of 9 Billion+ people on the planet. I am not assuming everywhere is simliar to the surrounding areas in which I live. I had a bad feeling for the Wii U from the moment it was released. I’m not really surprised to hear about this. I hope Nintendo can make a good turn around to make up for the loss.