Wii U officially flops, sales forecast slashed by 70%

[Scarlett.]

http://www.gengame.net/wp-content/uploads/2013/03/reggie-wiiu-flop.jpg

Nintendo, the Japanese gaming giant and creator of the Super Mario franchise, has issued a profit warning blaming weaker-than-expected Wii U console sales.

It now expects to make an operating loss of 35bn yen ($335m; £205m) for the financial year ending 31 March 2014.

Its initial estimate was for an operating profit of 100bn yen.

Nintendo said the key reason behind the downgrade was weaker-than-expected sales during the holiday season.

"In the year-end sales season which constitutes the highest proportion of the annual sales volume, software sales with a relatively high margin were significantly lower than our original forecasts," the firm said in a statement.
Losing faith

It said weak software sales were "mainly due to the fact that hardware sales did not reach their expected level".

The company cut its global Wii U sales forecast for the business year from nine million to 2.8 million units - a cut of nearly 70%.

It also reduced the sales forecast for its 3DS console from 18 million to 13.5 million units.

Three months ago Nintendo was standing by its sales projections for the Wii U, despite signs, from the UK at least, that retailers were losing faith in the product.

In July last year, UK supermarket chain Asda said it would no longer be selling the Wii U in its stores.
Online streaming

Nintendo has faced tough competition from rival games console makers, such as Microsoft with its new Xbox One, and Sony with its new PlayStation 4.

There is also a general trend towards online streaming of games to make them available over a variety of devices, such as mobiles and smart TVs.

At the recent Consumer Electronics Show in Las Vegas, Sony announced that PlayStation Now subscribers will be able to play some of the platform's greatest hits without the need to own a console.

Sony said it may offer its games to third-party products as well.
'Disappointing'

This month Nintendo's shares received a boost after China lifted a sales ban on foreign video games consoles.

The Chinese government said it would allow foreign firms to make consoles in the recently-launched Shanghai free trade zone and sell them across the country.

Nintendo's shares have risen 56% over the last 52-week period, reaching a two-and-a-half year high in January, but this latest profits warning - issued after the Tokyo markets closed - is likely to affect the share price on Monday.

"The fact that the Wii U strategy has failed is disappointing and will likely trigger a sell-off as soon as the market opens," said Makoto Kikuchi, chief executive of Myojo Asset Management.

BBC News



Perhaps Nintendo will finally wake up now, they have a good console with the Wii U, but honestly, they should have put more under the hood, they're now stuck with a next gen console that is only slightly more powerful than the X360 and PS3. This means no special 3rd party games. So they have to rely on Mario and Zelda for all their sales.

[Pete.]

what did they expect -- the Wii is fine http://exhalecdn.breatheheavy.com/public/style_emoticons/default/yes2.gif

[Kyle]

I bought this console about two weeks ago with Super Mario and Luigi bro's U and nintendo land and I love it. The games are great for local play and we've had a right laugh.

I'm looking forward to Mario kart 8 and the new Smash bros but they definitely need to whack out some more of their stalwarts like Metroid. Having said that I have just got Zelda wind waker and I plan on getting Pikmin 3, Rayman Legends, Suer Mario 3D world, lego city undercover, lego marvel heroes, monster Hunter 3 ultimate and a few others so i will get my money's worth out of it either way.

[Z]

I like Nintendo products but this entire marketing campaign has been shoddy

[Munchkins]

Still obsessed with my 3DS
20 amaazing games & counting i own

[Kyle]

Still obsessed with my 3DS
20 amaazing games & counting i own

Spot on! The 3DS started off slow but look at it now. I can't get enough of playing Mario kart and fire emblem.

[Scarlett.]

Nintendo seriously seem to have no idea what they're doing these days. I mean consider that Nintendo has no centralised account, in 2014, if you buy a game, it is only available for that ONE console, if it breaks, then thats it, wasted money.

Nintendo's naming schemes are so.....ugh. I mean the DS and the 3DS are two totally different consoles, how are people meant to know this? Same with Wii and Wii U, NES and SNES and Game Boy Colour and Game Boy Advance.

[Tom4784]

I can see Nintendo eventually dropping consoles and sticking to handhelds if it carries on like this. I also think that Nintendo might try to bring out another Next Gen console fairly soon, the Wii U is dead in the water because they tried to chase the casual audience which weren't reliable in the long run for the Wii and barely bought the Wii U.

Nintendo need to accept that they need better online functionality and technology comparable to it's competition. They should drop the Wii Brand with their next console since it's a damaged name that no one will take seriously and aim to bring out a more traditional console that's aimed at gamers, Casual audiences should never be the main focus because they are generally fickle and fleeting. Gamers are a reliable demographic and Nintendo can pull it back with their next console if they aim it at them.

[Z]

I kinda disagree with you Dean because aiming themselves at the casual market (families with young kids, for example) is precisely why they've been so successful for such a long time - they make games for people who aren't gamers; you don't need to be a gamer to pick up a Nintendo product and have fun with it - whereas Xbox and Playstation both provide games for gamers. However, they definitely need to modernise their approach. They need to really launch online gaming properly and they need to bring out more games for their new console. They should drop the Wii name though, I agree, that ship has now sailed.

[Munchkins]

Spot on! The 3DS started off slow but look at it now. I can't get enough of playing Mario kart and fire emblem.

Mario Kart, New Leaf, Luigis Mansion, Pokemon, The 2 Zelda Games <33
Mario 3D Land too, but ive 100% completed it so not much left to do
And thats only off the top of my head, ive got many more which have provided hours of entertainment :)

[Munchkins]

Not to mention Kirby, Smash Bros & Yoshi releases this year
whilst the Wii U just isnt cutting it

[Tom4784]

I kinda disagree with you Dean because aiming themselves at the casual market (families with young kids, for example) is precisely why they've been so successful for such a long time - they make games for people who aren't gamers; you don't need to be a gamer to pick up a Nintendo product and have fun with it - whereas Xbox and Playstation both provide games for gamers. However, they definitely need to modernise their approach. They need to really launch online gaming properly and they need to bring out more games for their new console. They should drop the Wii name though, I agree, that ship has now sailed.

It's okay to try and make a grab at the casual market, Sony and Micrsoft have added a lot of casual friendly stuff to their consoles but it's not smart to focus entirely on them. The Wii had one of the most successful launches ever because Casual audiences went mad for it but those casual players never bought any games outside of First party Nintendo games which scared off third party developers and left the Wii with a real shortage of quality games which meant that actual gamers didn't bother with it.

For a console to be successful it needs more than high sales of the console itself, it needs a high and steady number of games and content sales in order to attract the third party developers to develop the games that keep the gamers interested. Nintendo is lucky that they develop their own games which always sell well but they can only put out three or four blockbusters a year at most which isn't enough considering that the Playstation and the Xbox may have around 20 or so blockbusters a year. Third Party developers are vitally important to a console's success and they really need to lure both the gamers and developers back with their next major console.

As long as the handhelds continue to dominate, Nintendo will stay affloat but they really need to get their **** together when it comes to their consoles if they want to be a contender.

[Ninastar]

bring back the n64

[BBfanUSA]

Yeah watch them lower the price like they did with the 3DS. I think a good reason why it hasn't been selling well is because they're relying on the casual market too much so there isn't much for Hardcore gamers. (I see myself as a hardcore gamer)

Personally I'm waiting for the price to go down and then I'll buy it with Wind Waker, Smash Bros., Mario Kart.

I would not mind another Galaxy as well.

[Black Dagger]

Shame really, I love Nintendo, 64 was my fave console ever.

If I had the money I'd probably buy one and a 3DS.

[Kyle]

Yeah watch them lower the price like they did with the 3DS. I think a good reason why it hasn't been selling well is because they're relying on the casual market too much so there isn't much for Hardcore gamers. (I see myself as a hardcore gamer)

Personally I'm waiting for the price to go down and then I'll buy it with Wind Waker, Smash Bros., Mario Kart.

I would not mind another Galaxy as well.

I picked the premium one up off amazon for about 230 quid with Super Mario bros U and the Luigi bros expansion game.

There's usually somebody wanting the telly in our house so I'm really chuffed to be able to switch play some of my games on the gamepad without using the tv.

[Jake.]

:( I was thinking about getting one, the new Mario game looks fantastic and the reviews have been excellent. I agree with dropping the Wii brand, they should try to modernise the brand of the SNES again, the logo was brilliant and so easy to remember.

[Jake.]

I'd actually like to see them do a completely 2D, cartoony Mario game in the future, Super Mario Bros 4 or something :lovedup:

[Tom4784]

Imagine if they went the way of Sega and stopped making consoles and just made games, Mario and Zelda would sell millions on the Playstation and Xbox.

[Jake.]

Imagine if they went the way of Sega and stopped making consoles and just made games, Mario and Zelda would sell millions on the PS3 and Xbox.

Ah so true, i'd never want it to happen though, they belong on Nintendo consoles, just wouldn't seem right

[Tom4784]

Ah so true, i'd never want it to happen though, they belong on Nintendo consoles, just wouldn't seem right

It'll happen eventually if they don't change their fortunes, they'll end up developing games for their Handhelds and other consoles. They really need a homerun with their next console.

[Jake.]

It'll happen eventually if they don't change their fortunes, they'll end up developing games for their Handhelds and other consoles. They really need a homerun with their next console.

Yeah, sadly it's true, I really hope they can pull it together next time around. This generation for them isn't going to be a long one.

[Jake.]

http://i.imgur.com/1JRz2X1l.jpg

Ah I love it so much

[Munchkins]

bring back the n64

The best, always :worship:

[Smithy]

I hope they slash the price by 70% i might buy one then :laugh:

[BBfanUSA]

I hope they slash the price by 70% i might buy one then :laugh:

That what actually worked for the 3DS, which is why I'm expecting the price to go down

[Tom4784]

Dropping the price dramatically could help them a lot, the 3DS didn't take off until it got a price cut. They need a bigger Wii U player base and they need to get the third party developers back on board. If I was Nintendo I'd consider copying Sony's strategy and simply buying a few good developers to develop some new and exclusive franchises for the Wii U so that there's more on offer than a new Zelda and Mario game every few years.

[Jake.]

I hope the price is dropped too

[Scarlett.]

To be fair, the price isn't really a problem with the Wii U, instead its
- Lack of games, after the console being out for around a year and a half
- No global account for Nintendo consoles
- Bad marketing

[Tom4784]

To be fair, the price isn't really a problem with the Wii U, instead its
- Lack of games, after the console being out for around a year and a half
- No global account for Nintendo consoles
- Bad marketing

I reckon a price cut could help it a lot if timed well, if they can get a few big exclusives they could pull it back.

If I was working for Nintendo and I was tasked with trying to save the Wii U, this is what I'd do.

- Prioritise a new Zelda game and coincide a Wii U price slash with it's release.
- Get an exclusive out of Square, The Last Story was a great Wii Game and it would have sold like hotcakes if it had been released a few years earlier.
- One of the reasons why Gamecube was so successful was because of Resident Evil 0, the remake and the RE4 exclusivity. With Resident Evil: Revelations doing well on the 3DS Nintendo should try to get an RE exclusive out of Capcom, perhaps an RE2 remake.
- Come up with an exclusive first person shooter franchise, it's big business and both Microsoft and Sony have exclusive FPS franchises that are hugely popular. Nintendo has Metroid but it's not enough.
- Get exclusive fights to a hardcore fighting franchise, Super Smash Bros is very popular but Fighting Games are on the rise as proved by Microsoft relaunching Killer Instinct on the Xbox One as one of it's flagship titles.
- More games like Muramasa, Xenoblade, No More Heroes & Monster Hunter.
- BEG Gamefreak for a Wii U Pokemon game, Remake Ruby/Sapphire or Red/Blue for the Wii U and you'd sell **** tons of Wii U's.

[Tregard]

- Get exclusive fights to a hardcore fighting franchise, Super Smash Bros is very popular but Fighting Games are on the rise as proved by Microsoft relaunching Killer Instinct on the Xbox One as one of it's flagship titles.

The current rumour is Pokemon X Tekken, I **** you not.

Basically, Iwata has one last chance now. He has managed to engrained himself so deeply into how Nintendo runs that he cannot be easily replaced as CEO, but the amount of times he has asked stockholders to "Please Understand" now is beyond ridiculous. Their sales forecast was insane anyway, which makes the plummet look so much worse. They were aiming far too high, which shows a genuine lack of understanding for the current market. Iwata has already said there's going to be an industry shift in how Ninty runs, things aren't going to keep going as they were, so let's look at some of their options:

Stay in the handhelds, get out of the consoles: I'd probably come round to this eventually, but it would be very strange. The 3DS does well for Nintendo, it's a strong pillar, but their home console is dragging it down. A popular suggestion is for Nintendo to keep making handheld hardware, and become third party on consoles only, meaning they could have Sony and Microsoft fight for them, or sell on both.

Hybrid device: This is probably the most suggested course of action I've seen, and it seems like a very likely path, due to Nintendo merging their handheld and console R&D teams and the nature of the Wii U gamepad. Basically, make an HDS which can output to a TV and works with wireless controllers. Although this is risky, as if it fails, they have nothing to fall back on, and they'll be out of the game for good.

Go mobile: This would do very well for them in the short run, but would probably damage them long run. By putting new titles, or even just virtual console games on iOS or Android, they would sell gangbusters, but on the flip side would tarnish the brand and lead to a decrease in hardware sales, inevitably causing them to go fully software. They'd be rich, but they'd be a different Nintendo.

Those are just a few of the options I've been hearing, there are a ton. Needless to say this is going to be a very interesting and potentially scary year for Nintendo fans.

[Tom4784]

The current rumour is Pokemon X Tekken, I **** you not.

Basically, Iwata has one last chance now. He has managed to engrained himself so deeply into how Nintendo runs that he cannot be easily replaced as CEO, but the amount of times he has asked stockholders to "Please Understand" now is beyond ridiculous. Their sales forecast was insane anyway, which makes the plummet look so much worse. They were aiming far too high, which shows a genuine lack of understanding for the current market. Iwata has already said there's going to be an industry shift in how Ninty runs, things aren't going to keep going as they were, so let's look at some of their options:

Stay in the handhelds, get out of the consoles: I'd probably come round to this eventually, but it would be very strange. The 3DS does well for Nintendo, it's a strong pillar, but their home console is dragging it down. A popular suggestion is for Nintendo to keep making handheld hardware, and become third party on consoles only, meaning they could have Sony and Microsoft fight for them, or sell on both.

Hybrid device: This is probably the most suggested course of action I've seen, and it seems like a very likely path, due to Nintendo merging their handheld and console R&D teams and the nature of the Wii U gamepad. Basically, make an HDS which can output to a TV and works with wireless controllers. Although this is risky, as if it fails, they have nothing to fall back on, and they'll be out of the game for good.

Go mobile: This would do very well for them in the short run, but would probably damage them long run. By putting new titles, or even just virtual console games on iOS or Android, they would sell gangbusters, but on the flip side would tarnish the brand and lead to a decrease in hardware sales, inevitably causing them to go fully software. They'd be rich, but they'd be a different Nintendo.

Those are just a few of the options I've been hearing, there are a ton. Needless to say this is going to be a very interesting and potentially scary year for Nintendo fans.

Pokemon X Tekken? Ugh, I could see something like Pokemon X Capcom working but not a crossover game with Tekken. I truly believe that if Nintendo could convince Gamefreak to do a proper Pokemon game for the Wii U then it would be a huge system seller.

Yeah I said earlier that I could see them sticking to Handhelds earlier, Nintendo games would sell stupid amounts of units if they were released on Xbox and Playstation.

I don't like the sound of the Hybrid console nor the mobile business.

[Scarlett.]

I can definately see Nintendo going handheld only, they're too far behind MS and PS now in the console market now.

[Tregard]

http://abload.de/img/iwatatouchhdu86.png

[Jake.]

It has happened

http://www.digitalspy.co.uk/gaming/news/a545578/wii-u-premium-price-slashed-by-gbp120-at-argos-amazon.html

[Ramsay]

http://abload.de/img/iwatatouchhdu86.png

:joker::joker:
:worship:

[Scarlett.]

Holy crap, that is a big price cut! Thing is though, now that Nintendo have come out and said its a flop, they're going to have a hard time convincing 3rd parties to make games for it.

[Jake.]

Actually considering ordering one at that price

[Tregard]

The Wii U does have some fun titles, and with Smash Bros and Mario Kart still to come, a long with Bayonetta 2 and Zelda U, it's probably a worthwhile purchase.

However, beyond that, I expect no more games for Wii U, I reckon Nintendo are going to greenlight no more projects for the system, and all new projects will go towards its successor. I reckon we'll see the next Nintendo home console in 2015, which would give the Wii U the shortest lifespan of any console since the Virtual Boy!

[HD]

The lack of TVii/On Demand is quite disappointing.

One thing that's pissing me off is how Iwata keeps saying they want people to have a NES experience. We want a Wii U experience ffs.

They need to sort out their eShop pricing, why download is more expensive than physical is beyond me, maybe I've missed something there?

I also think going with Mario 3D World was a mistake, the Mario 3D series should have been kept for the 3DS. The Wii U desperately needs something in the line of 64/Sunshine/Galaxy in terms of the Mario series on the console.

I can see them remaking more games in HD tbh.

[Kyle]

The lack of TVii/On Demand is quite disappointing.

One thing that's pissing me off is how Iwata keeps saying they want people to have a NES experience. We want a Wii U experience ffs.

They need to sort out their eShop pricing, why download is more expensive than physical is beyond me, maybe I've missed something there?

I also think going with Mario 3D World was a mistake, the Mario 3D series should have been kept for the 3DS. The Wii U desperately needs something in the line of 64/Sunshine/Galaxy in terms of the Mario series on the console.

I can see them remaking more games in HD tbh.

How you can say 3D world is a mistake, it's one of/ if not the best games on Wii U. :conf:

There's still Smash bros, Mario Kart, Bayonetta 2, Donkey Kong Tropical Freeze, Hyrule Warriors, this new IP and possibly a metroid or Starfox yet to come. Nintendo won't give up on this console.

[HD]

How you can say 3D world is a mistake, it's one of/ if not the best games on Wii U. :conf:

There's still Smash bros, Mario Kart, Bayonetta 2, Donkey Kong Tropical Freeze, Hyrule Warriors, this new IP and possibly a metroid or Starfox yet to come. Nintendo won't give up on this console.

I thought it was piss poor to be honest :umm2:

Quite excited for Donkey Kong and of course new Zelda

[Kyle]

I thought it was piss poor to be honest :umm2:

Quite excited for Donkey Kong and of course new Zelda

Well that's fair enough if that's your opinion but it's had widespread critical acclaim.

[Tregard]

How you can say 3D world is a mistake, it's one of/ if not the best games on Wii U. :conf:

There's still Smash bros, Mario Kart, Bayonetta 2, Donkey Kong Tropical Freeze, Hyrule Warriors, this new IP and possibly a metroid or Starfox yet to come. Nintendo won't give up on this console.

Oh 3D World was a brilliant game, but it wasn't the groundbreaking Mario title that the console needed. People were clamouring for another 64 or another Galaxy, and in the end, no matter how brilliant you make a Platformer, it just wasn't a system seller. That's why it was a mistake.

[HD]

Oh 3D World was a brilliant game, but it wasn't the groundbreaking Mario title that the console needed. People were clamouring for another 64 or another Galaxy, and in the end, no matter how brilliant you make a Platformer, it just wasn't a system seller. That's why it was a mistake.

That's exactly how I meant to word my post :worship:
(minus the brilliant game bit) :hugesmile:

[Tom4784]

They need to aim their next consoles at gamers. No silly gimmicks or anything, just do a good, straight up console.

[Smithy]

i think i'm gonna get one, i'll wait till I'm next in guernsey tho cause you get VAT off hehe

edit: just looked on amazon and they're all still in the £230 range :conf2:

[Jake.]

off-topic but I've never played Galaxy 2 so I ordered it today

[Tregard]

off-topic but I've never played Galaxy 2 so I ordered it today

You won't be disappointed. :)

[HD]

i think i'm gonna get one, i'll wait till I'm next in guernsey tho cause you get VAT off hehe

edit: just looked on amazon and they're all still in the £230 range :conf2:

£179 in Argos now
http://www.argos.co.uk/static/Product/partNumber/9128842.htm

off-topic but I've never played Galaxy 2 so I ordered it today
Galaxy 2 is a great game.

I downloaded NES Remix this morning along with a few VC titles. :amazed:

[Jake.]

You won't be disappointed. :)

£179 in Argos now
http://www.argos.co.uk/static/Product/partNumber/9128842.htm


Galaxy 2 is a great game.

I downloaded NES Remix this morning along with a few VC titles. :amazed:

Yeah i've heard, looking forward to playing it :D what's NES remix?

[HD]

Yeah i've heard, looking forward to playing it :D what's NES remix?

It's a collection of challenges based on NES games, it's really good :D
http://en.wikipedia.org/wiki/NES_Remix

You need to get it if you get a Wii U :D

[Kyle]

You got the Wii U yet Jake?

[Jake.]

It's a collection of challenges based on NES games, it's really good :D
http://en.wikipedia.org/wiki/NES_Remix

You need to get it if you get a Wii U :D

Ah okay, looks good!

You got the Wii U yet Jake?

Nope, contemplating it though

[HD]

Nope, contemplating it though
Do it :devil:

[Kyle]

Do it :devil:

Yeh do it Jake! Or the Kitty Gets it!

http://animalfeasance.files.wordpress.com/2013/06/9ddbc936-580c-4a0f-bfbd-87d180ac6902_40kitten_gun.jpg%3Fw%3D500

[Jake.]

I might do :laugh: mainly for Mario tbh

[Niall]

I hope they slash the price by 70% i might buy one then :laugh:

Exactly what I was thinking. I've been tempted to get a Wii U for a while for Super Mario 3D World but it's overpriced and underpowered; better off keeping money aside for PS4 really. :idc:

[Mystic Mock]

Perhaps Nintendo will finally wake up now, they have a good console with the Wii U, but honestly, they should have put more under the hood, they're now stuck with a next gen console that is only slightly more powerful than the X360 and PS3. This means no special 3rd party games. So they have to rely on Mario and Zelda for all their sales.

I like the Wii U, but it is lacking the classic Games that you get on the Playstation.

[Jake.]

Galaxy 2 arrived today

[Kyle]

Spent the last two days on lego city undercover which is a wii U exclusive. A hilarious game and beautiful too.

[Kyle]

For anyone with a wii U

Trine 2 is currently on sale in the nintendo e-shop at 5.49 (usually 13.99).

It's the directors cut with wii u exclusive Content.

[HD]

I think we're the only ones with a Wii U Kyle
:hehe:

[HD]

Iwata taking a 50% pay cut.

http://www.digitalspy.co.uk/gaming/news/a547342/satoru-iwata-taking-50-percent-pay-cut-following-nintendo-financial-results.html

[Kyle]

I think we're the only ones with a Wii U Kyle
:hehe:

:hehe:

[Kyle]

Give me metroid Satoru damnit! :fist:

[Scarlett.]

I also have a Wii U, got it at launch, thats why I'm so disappointed in it.

[Kyle]

I'm not disappointed at all. I've had loads of fun with it. Local co-op especially.

[HD]

I got it at launch too, I'm abit pissed with the price drops but that's about it

[Scarlett.]

I'm not disappointed at all. I've had loads of fun with it. Local co-op especially.

There's absolutely nothing to play apart from Lego City Undercover, it's fine if you like playing Mario games since they seem to release new ones of that every other week. They could have at least have spent some money on new IPs or perhaps revived some old ones. Nintendo are extremely lazy when it comes to their games, they just slap "Super Mario" on any old ****, and throw out a Zelda game every other year, and thats it. Once upon a time, Nintendo was home to the likes of Metal Gear and Final Fantasy, hell, Resident Evil 4 began as a Nintendo exclusive too! Now its just the same old crap.

[Jake.]

Galaxy 2 is amazing :lovedup:

[HD]

Nintendo DS Virtual Console coming soon to Wii U.

Would have preferred N64 or Dreamcast...

[Tregard]

Nintendo DS Virtual Console coming soon to Wii U.

Would have preferred N64 or Dreamcast...

Oh god, just give us Gamecube VC already!

Also, Iwata pushing Nintendo's "Third Pillar" as medical technology?! He's gone nuts, I swear.

Interesting tidbit in that he is talking about their "Next console" being account based rather than device based. This implies their next console is going to come sooner rather than later :O

[Tom4784]

Nintendo DS Virtual Console coming soon to Wii U.

Would have preferred N64 or Dreamcast...

It'll be good for the few people who don't have a DS since it has a huge library of great games but I guess a good portion of the people who own a Wii U will also own a DS/3DS which kind of makes the Wii U ports pointless.

[Smithy]

£189.99 on amazon gonna order one next week :D

[Jake.]

£189.99 on amazon gonna order one next week :D

oooo