Why the Numbers Aren't All Doom and Gloom for Nintendo

The news you won't read in most of the stories reshuffling a Reuters report that ominously claims Wii U sales have “flopped,” is that Wii U sales in December 2013, according to NPD, were the best they've ever been.

Or take the company’s weirdly dismissed 3DS: you know, Nintendo’s handheld-slash-console that, just last night, NPD reported “topped overall hardware sales for December 2013 and for 2013 as a whole.” Important sidebars — or in the 3DS’s case, headliner — lost in the admittedly disturbing din of Nintendo’s “third consecutive annual loss” bandwagon.

[mhunterjr]

What this article neglects is the need to MAKE money while selling products. Sure there are things Nintendo can do to move more units, but cutting price to move units won't bring them to profitability. Especially not without 3rd party support to help bring in revenue from software sales.

The dismal outlook on profitability won't make investors eager to invest in Nintendo, and THAT'S why analysts think they are in trouble.

[clouds5]

Sony did it with the ps3 for a loong time and the last time i checked their still in business...

[mhunterjr]

There's nothing wrong with selling consoles at a loss... up until the Nintendo Wii, it was common practice from all manufacturers.

The thing is, when companies plan it out that way, they are counting on software sales to bring in the profit.

Sony always had good 3rd party support. not to mention the ps3 was a bet on blu-Ray, which paid off for Sony in the end.

In this case of the wii u, both the console and the software is selling poorly, compounded by the fact that 3rd parties are ignoring the system all together.

If there's no hope that software will make up for the loss, then you have a very risky proposition...one that investors won't like.

[yesmynameissumo]

You don't cut your sales forecast by 6.2 million consoles when things are going "swell". Time to take your head out of the sand.

[RPG_Lover]

This is the kind of article that is factual. Makes the game journalism doom and gloom look childish.

[Brazz]

Nintendo number are good! they have 3DS that is almost printing money! they don't need WII U, they have 3DS! Portable game will save nintendo, as in the time of Nintendo 64 and Game Cube, the 2 floped, but nintendo did fine whit gameboy family.

[MasterCornholio]

Wasn't the GameCube profitable?

[deafdani]

In terms of hardware sales, no; Nintendo sold it at a loss.

But overall, yes, it was slightly profitable for them due to software sales.

[InTheLab]

No it was not. There's something called a break even point and Nintendo never hit it with the GameCube. There was a set number of console they had to sell with the GC and they failed to hit that number, so it does not matter if you make a small profit on each unit (which in this case was only manufacturing costs)sold as it won't ever cover your losses.

What the people that continue to spread misinformation on how much Nintendo made during that era is that the DS kept N afloat after the major flops of both the N64 and the GC. They say things like N made more money during that era than Sony did then throw out how the GC was profitable but it's a half truth wrapped in a lie.

The truth is, the 3ds is making them money NOW but it was a different story 2 years ago when it launched. Remember when the thing was earning them over a $130 in profit with each sold back when the thing was $250? Well it was selling extremely poor but the numbers were offset by how much they made on the few sold. But they still needed to hit a break even point to turn out a real profit which means they needed a price cut and needed to move units. The point is, while they made a profit day one with the 3ds, that means nothing unless you move a set number of units each year.

So a year after the 3ds struggled, the WiiU comes along lights up the charts before falling off a cliff. So N is bleeding money with the WiiU and making a ton off a handheld much like they did ten years ago with the GC and the DS.

[BlackWolf]

Correction. The 64 and the Gamecube were not the success Nintendo was expecting, but they made profit from them, so flop is not the word you're looking for.

[kB0]

To fix this, let in reliable and good third party games. Not what Wii had...shovelware.

Articles like this are getting boring and predictable. Both the hate side of Wii.U and the Save part of Wii.u

It's simple. Mario kart and Super smash are coming out. If those do not turn sales around, nothing else will. (Not even Zelda, since I think it's more of a niche audience game at this point.)

To be honest I'm surprised Super Mario 3D World didn't push sales...that game made me almost go out and buy a Wii.U. I had to force myself hard not to because I bought a ps4 in Nov and I need to save for school!

[jimmywolf]

while it is surprising too see a surge in topics about Nintendo doom an gloom, i still feel Nintendo did it to itself an does not care.

their plan was an is, too take things slow. an adsorb as much cash as they can before price dropping/bundling the system, an then work on a new next gen system

as others have stated even if they drop support wii U right now an walked away, they still have the 3ds an profits from wii too be fine for least 2 more years, before they have too reform.

i wanted a wii U but do not agree with their practice of "we got your money, so we can take are time making game you will buy anyway" so am playing the wait an see game.

their a chance they could buckle down an improve, or they may wash their hands of it an start a new console

TLDR

Nintendo is fine despite anyone belief or pessimism otherwise

[Jay70sgamer]

Excellent article ......all this nintendo doom nonsense ...atleast their still are a few people that make sense ....

[strigoi814]

this maybe shooked Nintendo's core..hopefully they realize something is wrong, happened to Sony on PS3 but right strategy, pricing and marketing will make this a turn around..there are a significant numbers that flew when SM3Dworld came out.. consumers are waiting for something more appealing..not everyone are interested on shooters, not everyone likes online competition, some just want a bit of smile and spare time with family(only Nintendo can deliver with couch co-op)