Nintendo annual profit forecast cut by 70 per cent

by Mark Tyson on 25 October 2012, 09:00

Tags: Nintendo 3DS, PC

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Nintendo CEO Satoru Iwata has reduced the company’s full year net income forecast by a huge 70 per cent. There is both a slump in demand for Nintendo’s consoles and the problem of the strong Yen affecting overseas earnings. For the year ending March 31st 2013 the projected net income is now about US$75 million, the previous forecast was US$250 million.

Casual gamers have been moving away from handheld consoles like the Nintendo DS line (including the new 3DS models). In this April’s results the gaming firm experienced its first ever annual loss. The 3DS models bringing portable 3D gaming, without any special glasses required, have failed to set alight consumer interest. An analyst speaking to Bloomberg said “The 3DS is really failing.” He added that “Consumers are content to use their smartphones and tablet computers to play games.”

Nintendo is loading its gaming console cannon for another shot at the market with the upcoming Wii U console next month (launched 30th November in the UK). The basic 8GB version will be priced at £250 or less and offer “20 times the performance of the original Wii”. Nintendo realised flash memory prices are volatile and didn’t want that factor to have a big effect on the console price so have thoughtfully added an SD card and USB hard drive expansion option. Here are the full specs.

Think different

“The chances of consumers buying our software would be less and less if what we make isn’t so much different. We have to make games that smartphones or tablets can’t do,” said Nintendo CEO Iwata in a conference call discussing the latest results and projections.

Looking at competitors, we learned just how Microsoft is already muscling in on the two screens feature of the Wii U with Xbox Smartglass yesterday; it will get the two screen feature to market and not just in gaming, before Nintendo. Also we have the new iPad mini, revealed just hours ago, which is around the same price point as the Wii U, looking to fill a few Christmas stockings. Does Nintendo have a chance this Christmas?



HEXUS Forums :: 5 Comments

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Does the new Wii u have DNLA streaming media support? Online services such as netflix, Lovefilm ? Can it decode DTS-HD for modern movies -

Its needs to be some much more than a games machine to even stand a chance.
Real shame, hopefully the Wii U will pull them out. I absolutely love everything nintendo has brought into my life.
Going the way of Sega?
Brewster0101
Does the new Wii u have DNLA streaming media support? Online services such as netflix, Lovefilm ? Can it decode DTS-HD for modern movies -

Its needs to be some much more than a games machine to even stand a chance.
Agreed. Although I thought they were going to create more of a Media Centre with the Wii-U with downloadable apps.

Sega are doing quite well as a Software company. Almost every device has had some re-incarnation of 100 Megadrive games. I think Nintendo need to think along the lines of: Smart Wii
Poor hardware, rubbish graphics in Wii games - hard to even consider it as a games console!