Nintendo Makes Major Reductions in Wii U, 3DS Sales Projections

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Nintendo Makes Major Reductions in Wii U, 3DS Sales Projections

Wii U

Nintendo is now predicting an operating loss for fiscal year 2013 of $335 million.

Despite being faced with Wii U sales that have consistently looked as though they would fail to meet its sales projections, Nintendo has, up until now, refused to revise its numbers. That being the case, with fiscal year 2013 creeping closer and closer to its close, the company has finally given in and updated its projections to reflect less successful realities.

Whereas in the past Nintendo had predicted it would sell 9 million Wii U's by the fiscal year's end, it's now lowered that number to a significantly more modest 2.8 million. Likewise, the 3DS's projections are being dropped from 18 million units sold to a lesser prediction of 13.5 million units. Accompanying the lowered expectations for hardware are a decreased expectations for software and an anticipated operating loss for the company of 35 billion Yen ($335 million).

According to Nintendo president Saturo Iwata these more subdued numbers belie some actual improvements in its hardware's performance. In the case of the 3DS, for instance, the handheld remained a heavy seller in Japan where it only missed its local projections by small margin. It was in foreign markets where the 3DS failed "to achieve our goal of a providing a massive sales boost." Despite this failure however, it still remained a consistent top seller in 2013 according to independent research company's like NPD. The Wii U, in turn, "showed some progress in the year-end sales season" as Nintendo released several of its franchise heavy hitters, but ultimately failed to gain the ground the company had hoped for. We can only imagine a pair of highly anticipated console launches might have had something to do with that.

Source: Nintendo Life

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Well, that really sucks for them. Especially considering the great Mario games that came out.
However, I'm sure SSMB 3 will definitely raise those numbers quite a bit.

P.S. It says 9 mullion Wii U's in the second paragraph.

Fixed now :)

SKBPinkie:
Well, that really sucks for them. Especially considering the great Mario games that came out.
However, I'm sure SSMB 3 will definitely raise those numbers quite a bit.

P.S. It says 9 mullion Wii U's in the second paragraph.

Hopefully, while I haven't been much a dedicated Nintendo fan since the 90s ended, I still like to see the company do well.

Such a shame, you'd have thought the big Mario release would have boosted sales.
the HMV by me had sold out of the consoles too.
whats the exchange rate 35 billion Yen to Mario Minted 24 carrat gold coins?

Nintendo had predicted it would sell 9 million Wii U's by the fiscal year's end, it's now lowered that number to a significantly more modest 2.8 million.

Wow, we make fun of publishers for their ridiculous sales targets but to get it wrong by a factor of 3 is crazy. How does this compare to how well the Wii did in its first year?

I think nintendo made a big, big mistake by deprecating Wii. They made a game console that lots of people finally see as a common household appliance, and went and ruined this with the Wii U.

Instead of again going with the MOAR STUPHH bandwagon, they really should have continued on that fork..

Sol_HSA:
I think nintendo made a big, big mistake by deprecating Wii. They made a game console that lots of people finally see as a common household appliance, and went and ruined this with the Wii U.

Instead of again going with the MOAR STUPHH bandwagon, they really should have continued on that fork..

I disagree. The Wii was the best selling console in the previous console generation, but the sales were going down and software sales were low compared to the other 2. Great games fell flat because there wasn't an audience for it. At the end of its lifespan they were posting losses, in fact 2011 was the first year where they ever posted losses for a full year.

The Wii, despite its success didn't have a future.

CriticalMiss:

Nintendo had predicted it would sell 9 million Wii U's by the fiscal year's end, it's now lowered that number to a significantly more modest 2.8 million.

Wow, we make fun of publishers for their ridiculous sales targets but to get it wrong by a factor of 3 is crazy. How does this compare to how well the Wii did in its first year?

The Wii U has sold less in it's first year than the PS3 or the 360 by a significant amount. I forget exactly how much but I actually worked it out based on sales estimates sometime last month out of curiosity. I think it was in the realm of at least a million less. Considering the Wii dramatically outsold both of those in it's first year, that's not an insignificant difference at all. By comparison the Wii U has been a dismal failure.

CriticalMiss:

Nintendo had predicted it would sell 9 million Wii U's by the fiscal year's end, it's now lowered that number to a significantly more modest 2.8 million.

Wow, we make fun of publishers for their ridiculous sales targets but to get it wrong by a factor of 3 is crazy. How does this compare to how well the Wii did in its first year?

The Wii sold 5.84 million from launch until March next year, then it sold 19 million the next year (ie this one for the Wii U)

In comparison the Wii U has sold 3.5 million in it's launch-until-march and Nintendo are predicting it will have sold 2.8 million for the entirety of this year.

I think that might make it one of the worst changes in sales rates for any console ever. Traditionally a console is meant to sell more in it's second Christmas than it's first. Nintendo have sold less over the entirety of the year then they sold on the first christmas. (they only sold 1.3 million units March till November 30th).

-----------

For comparison. The PS3 had a rocky start, it sold 3.6 million at launch and then 9.2 million in the second year.
The Gamecube sold 3.8 million at launch and then 5.7 million in the following year.
The Xbox sold about 3.9 million at launch and then 5 million in it's next year.

We're talking Dreamcast bad right now

they were never going to match the success of the wii, the wii had universal appeal because it had a control system that anyone could pick up and know how to play which is why people who aren't gamers bought it.

you cant pander to the casual market they don't buy games for their toy. they play wii sports when the grand kids have come to visit.

in fact im pretty sure they should have given the wiiU a different name to tell it apart from the countless generational iterations of the ds im sure there was a lot of confusion there too

So, that's three consecutive years of losses. It's time for Nintendo to go third party.

VG_Addict:
So, that's three consecutive years of losses. It's time for Nintendo to go third party.

I believe that's two.

Also, you conveniently ignore the booming success of the 3DS.

Perhaps there was some sense to the pessimism after all.
I tried giving them the benefit of the doubt before due to how the 3DS pulled out of its tailspin, but I guess that isn't happening.

It still looks like the 3DS will be fine, but the WiiU numbers demonstrate the cumulative weakness of a shit game library.

Where the fuck are the games, Nintendo? Oh, right. Your new system is laughably underpowered compared to its competition, bundled with a gimmick that no developer likes, and Nintendo continues to be a pain in the ass to work with.

The Wii was dirt cheap to develop for because it was basically just Gamecube 1.5 with some gimmicky controls.
More importantly, the Wii was significantly cheaper than its competition on launch, set a trend for a major gimmick, and was appealing to pretty much everyone BUT hardcore gamers.

This time around, the WiiU is late to its own party; Tablets and touch screen gaming was already common.
The average retail price difference isn't nearly enough to justify its purchase, and even with a solid year's head start Nintendo has only managed to regurgitate some more Mario (spare me the gushing) with very little else.

BrotherRool:

The Wii sold 5.84 million from launch until March next year, then it sold 19 million the next year (ie this one for the Wii U)

In comparison the Wii U has sold 3.5 million in it's launch-until-march and Nintendo are predicting it will have sold 2.8 million for the entirety of this year.

-----------

For comparison. The PS3 had a rocky start, it sold 3.6 million at launch and then 9.2 million in the second year.
The Gamecube sold 3.8 million at launch and then 5.7 million in the following year.
The Xbox sold about 3.9 million at launch and then 5 million in it's next year.

We're talking Dreamcast bad right now

Holy shit those numbers are bad.

It was big mistake to try and take on Apple in the tablet gaming department. What is the laymen going to invest in; a tablet that can also acts as his phone and fit in his pocket, or a large controller that can only play video games that at least 60X more expensive than what's offered on the other device, and for a fraction of the time.

Hey don't get me wrong, I'd prefer a good Nintendo classic to usual IOS affair... but then again I've spent more time playing Asphalt8 than I have been playing Nintendo games over the past 5 months.

Their 3DS numbers are dropping off too. They're going to have to do something, waiting a few months and hoping that the next big Link/Mario/Whatever game will drive sales through the roof obviously isn't working.

Dragonbums:

VG_Addict:
So, that's three consecutive years of losses. It's time for Nintendo to go third party.

I believe that's two.

Also, you conveniently ignore the booming success of the 3DS.

They had to revise 3DS sales down by 5 million. Saying that I agree, I'm pretty sure if Nintendo didn't have a Wii U then the 3DS would be giving them a comfortable profit now.

Nintendo as just a handhold developer would actually be pretty interesting. Imagine all of Nintendo's dev teams purely focusing on making 3DS games. I can't imagine Nintendo are going to cut the Wii U loose but I think if a dispassionate executive took Nintendo over, it would probably be a smart move. It's just capital and time being thrown after good money, when they still have other avenues that would benefit more.

But I can't imagine Nintendo doing that and whilst these numbers are much worse than they've ever been before, they might be able to claw back Gamecube numbers or maybe find some way to attract Wii fans. If they manage that though, we'll have to fall down and worship Nintendo's genius. One of the great things about the Wii is that anyone using it looks a little bit silly, so it's a naturally fun console to play with friends. Having a guy poke at a tablet doesn't do that so much and the casuals probably aren't interested enough to care about better graphics or cool asymmetric games.

Dunno about going handheld only. You do that and you're betting on going up against all the tablet and phone makers. Sure the dedicated hardware will be better for games and have better controls, and the games that they'll put out will also be better, but a dedicated gaming device is a hard sell given the continued improvement of the other hardware.

You could do it, but you'd really have to be hoping that the tablet and phone companies don't manage to come out with something that's good enough for gaming that people just go for that because the device is multi-function.

Damn shame since the wiiU is a cool lil console, wonderful 101 is tits awesome and monster hunter 3 has the best console multi I've seen, then again I like having a server browser.

Vivi22:

CriticalMiss:

Nintendo had predicted it would sell 9 million Wii U's by the fiscal year's end, it's now lowered that number to a significantly more modest 2.8 million.

Wow, we make fun of publishers for their ridiculous sales targets but to get it wrong by a factor of 3 is crazy. How does this compare to how well the Wii did in its first year?

The Wii U has sold less in it's first year than the PS3 or the 360 by a significant amount. I forget exactly how much but I actually worked it out based on sales estimates sometime last month out of curiosity. I think it was in the realm of at least a million less. Considering the Wii dramatically outsold both of those in it's first year, that's not an insignificant difference at all. By comparison the Wii U has been a dismal failure.

Put it this way. In a year of release (With 2 Christmas seasons mind you) the WiiU sold just under 3 million units. That's for the first YEAR. PS4 and XBox One each broke 3 million within 2-3 WEEKS of launch.

Dragonbums:

VG_Addict:
So, that's three consecutive years of losses. It's time for Nintendo to go third party.

I believe that's two.

Also, you conveniently ignore the booming success of the 3DS.

But the sites say three consecutive years.

VG_Addict:

Dragonbums:

VG_Addict:
So, that's three consecutive years of losses. It's time for Nintendo to go third party.

I believe that's two.

Also, you conveniently ignore the booming success of the 3DS.

But the sites say three consecutive years.

And how long has the Wii U been out?
This is going to be the consoles second year. Three if you are seriously going to count 17 days since New years. However the console has only been out for 2 years.

Dragonbums:

VG_Addict:

Dragonbums:

I believe that's two.

Also, you conveniently ignore the booming success of the 3DS.

But the sites say three consecutive years.

And how long has the Wii U been out?
This is going to be the consoles second year. Three if you are seriously going to count 17 days since New years. However the console has only been out for 2 years.

They posted a loss in 2011.

Though, Wii U had its best month in December.

BrotherRool:

Dragonbums:

VG_Addict:
So, that's three consecutive years of losses. It's time for Nintendo to go third party.

I believe that's two.

Also, you conveniently ignore the booming success of the 3DS.

They had to revise 3DS sales down by 5 million. Saying that I agree, I'm pretty sure if Nintendo didn't have a Wii U then the 3DS would be giving them a comfortable profit now.

Nintendo as just a handhold developer would actually be pretty interesting. Imagine all of Nintendo's dev teams purely focusing on making 3DS games. I can't imagine Nintendo are going to cut the Wii U loose but I think if a dispassionate executive took Nintendo over, it would probably be a smart move. It's just capital and time being thrown after good money, when they still have other avenues that would benefit more.

But I can't imagine Nintendo doing that and whilst these numbers are much worse than they've ever been before, they might be able to claw back Gamecube numbers or maybe find some way to attract Wii fans. If they manage that though, we'll have to fall down and worship Nintendo's genius. One of the great things about the Wii is that anyone using it looks a little bit silly, so it's a naturally fun console to play with friends. Having a guy poke at a tablet doesn't do that so much and the casuals probably aren't interested enough to care about better graphics or cool asymmetric games.

Nintendo as just a handheld developer wouldn't be interesting. It would just be the same as always, only that they don't make consoles anymore. And considering how the console scene itself is more or less the same thing with the only thing differing between the two is brand title, price points, and exclusives- that would be a pretty boring era indeed. What Nintendo needs to do now is finish up whatever games they are making for the 3DS, and put a huge chunk of that team over to the Wii U. It's clear that in terms of games development, Nintendo put a lot of horse power to make sure the struggling becomes a success. This resulted in the current neglect of the Wii U. Now that the 3DS is doing stellar- they need to give the Wii U the preferential special treatment the 3DS has been getting. That and they need to rerun that overview Wii U commercial ad over and over again so the masses will finally get the fact that it's a new console. Just advertising the games isn't going to cut it.

VG_Addict:

Dragonbums:

VG_Addict:

But the sites say three consecutive years.

And how long has the Wii U been out?
This is going to be the consoles second year. Three if you are seriously going to count 17 days since New years. However the console has only been out for 2 years.

They posted a loss in 2011.

Though, Wii U had its best month in December.

That's hardly specific. Why don't you actually flesh out your comments instead of making me have to fill in the gaps of what you mean.

"Nintendo posted a loss in 2011" 2011 of what month? Day? They could of posted a loss in 2011 on December 31st. Come on now.

Dragonbums:

VG_Addict:

Dragonbums:

And how long has the Wii U been out?
This is going to be the consoles second year. Three if you are seriously going to count 17 days since New years. However the console has only been out for 2 years.

They posted a loss in 2011.

Though, Wii U had its best month in December.

That's hardly specific. Why don't you actually flesh out your comments instead of making me have to fill in the gaps of what you mean.

"Nintendo posted a loss in 2011" 2011 of what month? Day? They could of posted a loss in 2011 on December 31st. Come on now.

The Wii U sold more than 460k units in December, so it was their highest month yet.

Here's the source:

http://www.engadget.com/2011/10/27/nintendo-posts-first-half-loss-in-earnings-report-slashes-forec/

VG_Addict:

Dragonbums:

VG_Addict:

They posted a loss in 2011.

Though, Wii U had its best month in December.

That's hardly specific. Why don't you actually flesh out your comments instead of making me have to fill in the gaps of what you mean.

"Nintendo posted a loss in 2011" 2011 of what month? Day? They could of posted a loss in 2011 on December 31st. Come on now.

The Wii U sold more than 460k units in December, so it was their highest month yet.

Here's the source:

http://www.engadget.com/2011/10/27/nintendo-posts-first-half-loss-in-earnings-report-slashes-forec/

That doesn't address your 2011 post. Like at all. If your going to keep being disjointed, then I think it would be best if we just end the conversation right here.

Dragonbums:

Nintendo as just a handheld developer wouldn't be interesting. It would just be the same as always, only that they don't make consoles anymore. And considering how the console scene itself is more or less the same thing with the only thing differing between the two is brand title, price points, and exclusives- that would be a pretty boring era indeed. What Nintendo needs to do now is finish up whatever games they are making for the 3DS, and put a huge chunk of that team over to the Wii U. It's clear that in terms of games development, Nintendo put a lot of horse power to make sure the struggling becomes a success. This resulted in the current neglect of the Wii U. Now that the 3DS is doing stellar- they need to give the Wii U the preferential special treatment the 3DS has been getting. That and they need to rerun that overview Wii U commercial ad over and over again so the masses will finally get the fact that it's a new console. Just advertising the games isn't going to cut it.

I think doubling down would be a bad idea. Whilst the 3DS has sold well, it sold 33% less devices than they thought it was going to this year. That's not totally stellar. It sold the average amount of pieces of hardware that a non-failing console sells and the DS in it's prime sold 300% more than the 3DS is selling now.

This is the second year of the 3DS and in that year it's going to sell around 10 million less units than the DS sold in it's second year. In fact, it's only selling exactly as well as the PSP sold.

The 3DS is selling well, but it's not selling as nearly as well as Nintendo hoped, nor is it reaching it's full potential. Whereas the Wii U is at best going to be a gamecube at the moment. They're not going to get third-party support when they've had the worst first year of any console in the past 20 years that wasn't made by Sega. If they invest even more in the 3DS then they can push up whats on track to be an 80 million console into a 110 million console (and if they actually ditch the Wii U entirely they could probably making it the bets selling handheld ever). If they focus on the Wii U, they can push up a 10-15 million console into a 25-30 million one.

With poor software sales. I'd put all my money on the 3DS right now

I do think Nintendo's next console needs to be a home run. We all have high expectations for the company and its reflected in the numbers that nobody was too impressed with the Wii U.

Also I'm loving my 3DS and when I have money I'm going to be looking for more games.

Well, Nintendo made a lot of mistakes. This is the result of that so I can't feel sorry for them. But I hope it motivates them to revise how they do their market research (both research of consumers and competitors) going forward. They can't keep behaving like they're the only game in town just because that was true with the Wii and the truly innovative WiiMote at the time.

They alienated large sections of their target market with price and control difficulty while simultaneously failing to provide almost any competitive advantage over the other companies besides being launched early.

I'll give it until the end of the fiscal year to really make up my mind about the success or failure of the system but all signs currently point to failure. Unless they sell around 4 million copies by November then they'll have sold fewer units than the Dreamcast did over the same time period.

How likely is it that this is Nintendo's last console gen?

Lightknight:
Well, Nintendo made a lot of mistakes. This is the result of that so I can't feel sorry for them. But I hope it motivates them to revise how they do their market research (both research of consumers and competitors) going forward. They can't keep behaving like they're the only game in town just because that was true with the Wii and the truly innovative WiiMote at the time.

They alienated large sections of their target market with price and control difficulty while simultaneously failing to provide almost any competitive advantage over the other companies besides being launched early.

I'll give it until the end of the fiscal year to really make up my mind about the success or failure of the system but all signs correctly point to failure. Unless they sell around 4 million copies by November then they'll have sold fewer units than the Dreamcast did.

As much as it might be deserved, this is uniquely depressing considering the bump they got from China opening. The five day stock trend looks like a profile of the continental shelf. Iwata must be under huge pressure right now to do something about it, since he decided not to step down.

CriticalMiss:

Nintendo had predicted it would sell 9 million Wii U's by the fiscal year's end, it's now lowered that number to a significantly more modest 2.8 million.

Wow, we make fun of publishers for their ridiculous sales targets but to get it wrong by a factor of 3 is crazy. How does this compare to how well the Wii did in its first year?

Memory serves it was about 3 million by the end of March 2013, so end of Fiscal 2012 had about 3 million units.

faefrost:
Put it this way. In a year of release (With 2 Christmas seasons mind you) the WiiU sold just under 3 million units. That's for the first YEAR. PS4 and XBox One each broke 3 million within 2-3 WEEKS of launch.

Indeed. I'm not sure some of the Nintendo defenders realize just how bad the Wii U has been doing. And the supposedly good titles that people expect to turn it around aren't doing anything. I honestly believe it's part of the problem you run into when your previous console relied heavily on an audience that's found smartphones and tablets now, and really couldn't care about a new console.

I think Nintendo needs to try and seek out and recruit indie developers and try to market itself as the indie console the Ouya tried to be, backed up of course by it's own high quality first party titles. It can't compete with the other consoles in power or performance and thus has already failed the triple-A scene that it seemed to be shooting for, but it can try to market itself as a different kind of console, one less expensive and more focused on creative low budget titles. Nintendo's sensibilities have always been more in line with an indie developer anyway, just with a much higher budget.

VG_Addict:
How likely is it that this is Nintendo's last console gen?

Extremely unlikely. They've got something like $50 billion in cash to wade through any storm they want to. Hopefully this is the last console they rely on peripherals and little software to carry though.

EvilRoy:
As much as it might be deserved, this is uniquely depressing considering the bump they got from China opening. The five day stock trend looks like a profile of the continental shelf. Iwata must be under huge pressure right now to do something about it, since he decided not to step down.

Yes, I don't like seeing Nintendo fall like this. But I don't feel sorry because they have all the means to spring back from this. They need this kind of black eye to wake up from the isolationist "we're not really competing with the other consoles" bullshit that was only true for the Wii.

I'm pissed that they likely wasted a generation of excellent Nintendo games on the worst console move they could have made. Years behind the other guys.

Either way, cause and effect is quite the bitch in this case.

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