Iwata on 3DS/Wii U profitability, Mario Kart/Smash will drive Wii U, more

Posted under 3DS, News, Wii U
February 3, 2014 by (@NE_Brian)

Thanks to the 3DS’ install base, Nintendo now feels that it can turn a profit with the system’s software. President Satoru Iwata mentioned to investors last week that the company has “many key titles to be released in this calendar year and we will strive to drive profits from these titles.” 3DS overall is expected to be “the key profit-driver for the next fiscal year”.

With Wii U, on the other hand, Iwata admitted that “it is not easy to make a significant profit with the current units sold.” But with Mario Kart 8 and Super Smash Bros. acting “as our main drivers”, Nintendo “would like to make sure that the markets will thoroughly acknowledge the value of Wii U, including the titles that we have released to date.”


Regarding Nintendo 3DS, we did not sell as much as we expected in the last year-end sales season. Since we expected the sales volume of Nintendo 3DS to increase rapidly in the year-end sales season and saw signs that it would happen at the end of October last year, I mentioned at the second quarter Financial Results Briefing that we would aspire to deliver great results in the year-end sales season, but we are now reflecting on the fact that we could not achieve it. On the other hand, since Nintendo 3DS has an installed base of more than 40 million units globally as I mentioned earlier, we are now getting to the point where it is impossible not to turn a profit with our software business. We have many key titles to be released in this calendar year and we will strive to drive profits from these titles. Seen in this light, I believe the key profit-driver for the next fiscal year will be Nintendo 3DS. Regarding Wii U, it is not easy to make a significant profit with the current units sold. The price reduction of the hardware in the overseas markets represents a large amount of our total expenditure for this fiscal year, but based on the premise that we will not make such a reduction in the next fiscal year, I think our business can operate without such a negative effect on our profitability. Also, in this calendar year, we will release “Mario Kart 8” and “Super Smash Bros.” which are kinds of games that Nintendo has been particularly strong with in encouraging players to invite each other to play. Therefore, with these two titles as our main drivers, we would like to make sure that the markets will thoroughly acknowledge the value of Wii U, including the titles that we have released to date. Also, we will try to turn around Wii U and enrich the value of the GamePad, a point I mentioned earlier in my presentation. With regard to Wii U, it is not realistic to hope that it will sell 100 million units in the same product cycle as Wii. On the other hand, I believe it is never too late and it is possible to achieve a certain level of sales volume and a certain level of results with Wii U depending on how we write its scenario. Therefore, we would like to come up with a realistic scenario and turn Wii U into a platform that generates as much profit as possible.

Source



  • Neco The Sergal

    Good luck, you’re gonna need it.

    Nintendos’ forecasts and predictions haven’t been going just as planned of the recent year, I’m not going to be the one to bet on their horse and think themselves as a winner. Being confident and expressing it is the only card they have because if they’re wrong on this? It speaks more messages of doom. For instance, more people will get Smash Brothers on 3DS than the console iteration for sure at this current standing of hardware sales. It will garner console sales for those who’re going for a potential, Tournament-Feel with a controller as they feel a handheld won’t cut it, but battles on a big screen is the only way. As for Kart? Questionable.

    • Holyfire

      Well they’ve never done a Smash game on DS, so even if WiiU doesn’t make mass success, I think in general, Nintendo will have a very financially good year. Alas, with all this financial ‘doom’ for Nintendo, is everyone on the planet forgetting that Nintendo is still making more money (or less losses) than Sony? They are shriveling, and Nintendo is worth more than Sony in total. XBOX division is a financial nightmare for Microsoft. I think by 2014 end, Nintendo in general will keep financially pretty square. They have awesome games coming out, and I’m getting a feeling their plan for WiiU is starting to unfold, albeit, a little late-ish.
      Loads of high profile exclusives coming, and the new plethora of HTML5 games (,supposedly 100′s) coming to the system will make WiiU a direct competitor to the tablet/smartphone market.
      The real question is, Will XBOX division still survive the next few years with the new CEO, and will Sony survive their obliterated electronics, music and movie markets??

    • Holyfire

      Well they’ve never done a Smash game on DS, so even if WiiU doesn’t make mass success, I think in general, Nintendo will have a very financially good year. Alas, with all this financial ‘doom’ for Nintendo, is everyone on the planet forgetting that Nintendo is still making more money (or less losses) than Sony? They are shriveling, and Nintendo is worth more than Sony in total. XBOX division is a financial nightmare for Microsoft. I think by 2014 end, Nintendo in general will keep financially pretty square. They have awesome games coming out, and I’m getting a feeling their plan for WiiU is starting to unfold, albeit, a little late-ish.
      Loads of high profile exclusives coming, and the new plethora of HTML5 games (,supposedly 100′s) coming to the system will make WiiU a direct competitor to the tablet/smartphone market.
      The real question is, Will XBOX division still survive the next few years with the new CEO, and will Sony survive their obliterated electronics, music and movie markets??

  • Magnus Eriksson

    Thanks for telling us that there is no plan besides Mario Kart and Smash. The sooner Wii U fails the better. This few games cannot justify a console at all. N. should pull the plug of Wii U and go third party now.

    • Shota

      XD

    • sonicfan1373

      There are more games for 2014 for Wii U (X, Bayonetta 2, Sonic Boom) with more to be announced at E3 . Mario Kart and Smash are just two key games known for increasing console sales. Also, why should Nintendo go third-party, when they had the best selling console in 2013 (3DS) and their previous generation systems were massive successes; giving up on your core strategy because of one product that is doing badly does not seem like a good idea.

      • Thomas_NE

        X likely won’t be making it to the west in 2014, and Sonic Boom might very well be as mediocre as most other Sonic games. That leaves 5 titles for 2014. I guess we’ll see what E3 brings, but I doubt they’re doubling that number.

  • Thomas_NE

    “NintendoLand & NSMBWiiU will drive Wii U sales”

    - few months later-

    “err, Pikmin 3 and Wind Waker HD will drive Wii U sales”

    -few months later-

    “Super Mario 3D World? Donkey Kong?”

    -few months later-

    “Mario Kart? Smash Bros?”

    I want to believe.

    • sonicfan1373

      With every one of these titles released there was a significant bump in sales of consoles. Unfortunately, with every release there was another multi-month drought which lead to a loss in momentum.

      With that being said Wii U sales are actually up YOY. However, at the current price, the only way momentum for the console will increase to acceptable levels is if Nintendo releases key titles back to back every month. Iwata has stated that is what he intends to after Mario Kart 8 but at this point actions speak louder than words.

      • Thomas_NE

        Nintendo simply doesn’t have enough development teams to release games every month.

        • sonicfan1373

          I do not think Wii U will do as well as the Wii. But if its fortunes change it might do between GameCube and N64 (22-30 million life). Similarly, I do not believe 3DS will do as well as DS. The market has changed and there is more competition in the consumer gadgets industry, but I think Nintendo can still do okay if they manage to sell hardware at a profit (key problem with Wii U and initially with 3DS) and back it up with good first-party, second-party, and third-party exclusives.

          I agree with what you say about undermanned dev teams. However, I assume that Nintendo’s teams have been working on unannounced software projects in-advance. With 3DS many of the games that we saw in 2012/2013 actually started development between 2009-2011; and Nintendo is known for holding back completed games so that they can do burst releases (bad strategy imo because it shows that they are undermanned).

          Of course much of what I have said are assumptions from what they have done in the past, so it might be right or compeletly wrong. Unfortunately, we truly will not know what Nintendo is planning for Wii U’s future until they do a Direct, give more info at their March investor meeting, or at E3.

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