Analysts Really Need To Stop With "Nintendo is Doomed!"
Do you think Nintendo should allow their franchises on other platfroms?
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http://www.reuters.com/article/2012/04/25/us-nintendo-idUSBRE83O15L20120425
http://www.neogaf.com/forum/showthread.php?t=471687
Nintendo recently reported a first ever financial loss of about 45 billion (or 553 million dollars) at their investors meeting. Analysts have been saying that Nintendo needs to take drastic measures if they want to turn a profit for this year. Some recommend that they sell the Wii U at $350 if they want to break even, others state that with the emergence of mobile games, they should allow their franchises on the iOS and Android platforms.
Now, I know I shouldn't be saying this considering I'm going for a business degree myself, but fuck fuck fuck what the analysts say. I realize Nintendo has an obligation to increase their profit margins for them but seriously, what the analysts are proposing is the worse possible situation that would harm Nintendo to the point of possibly kicking them out of console development.
First let's start with the proposed idea of selling the Wii U at $350. Let's also assume that it costs about $240 to make; console, controller, game pack-in and all. Nintendo could choose to make $100 off of every Wii U sold (with a deviation of -20 dollars), and again, let's assume the sales are 2 million at that price point for their fourth quarter fiscal year (that would be from December this year to March 31st of 2013). That would give them a profit of 200 million dollars. The Wii in 2006, between the same time period sold, according to vgchartz, 5.84 million units, and Nintendo earned about 40 dollars off of every Wii sold (according to Joystiq at a production cost of 200). That gives them about 233.6 million dollars.
Now lets assume they sell it at the very much proposed $300 dollars. Sales we can guess to be 4.2 million units but this time they only receive, let's say, 50 dollars off of every Wii U. That gives them 210 million dollars. It isn't that much more, but assuming the the law of supply and demand are correct, Nintendo should sell more for less than if they were to sell it at $350. The 3DS, if people already forgot, sold about 4.70 million units (wikipedia says 4.32 by June 30 2011 so I rounded up to an extra 700,000 sales before the price cut in the end of July) in the same four month time span at $250 (and Pachter thought that was too low, HA), chopping off two weeks before the cut. The 3DS cost about 100 dollars to make, so they were making about 110 dollars off of every 3DS sold. Which would give them 517 million dollars, which, even though that is more than the other consoles (estimate numbers, so it could have sold less), it is important to remember that Nintendo estimated about that much to be sold on release. So to sell the projected amount months after is not good.
Moving onto their next idea, releasing their franchises on the iOS and Android platforms (even though Nintendo stated that if they go down, their franchises are going with them). This is the stupidest idea I have ever heard. If Nintendo does that, then there sales would drop drastically. And I'm not talking about releasing a full-blown Zelda on an Apple device or console, I'm saying like Pokemon or something capable of fitting on Apple's device. If Nintendo released and re-released all Pokemon games for the 3DS and iOS devices, there would be no point in getting it for the 3DS. They also would also lose creative control over the Apple iOS version in terms of price-structure. There is a reason why Nintendo makes the amount of money it does, it's exclusives. If they didn't have those, Nintendo would be like any third party developer or second-tier developer for Sony (I doubt Nintendo would join forces with Microsoft if they had to choose). Granted, they could gain money, sure, maybe even a ton, but analysts are so hyper-fixated on the short run that in the long run, Nintendo would be losing money.
God, all this financial doom and gloom just needs to stop, period. Nobody is talking as much about Sony and their 6 BILLON dollar loss (though Sony is getting a lot of press). Sony isn't just a game developer I know but that's no excuse. Same with Microsoft, nobody talked about them constantly losing sales for years due to the RROD. Whatever, analysts can say what they want, but I have faith that Nintendo will profit off of the Wii U, maybe not like the Wii, but definitely not catastrophically fail.
I want this to be a honest and reasonable discussion, so go ahead and give your thoughts on the situation.
http://www.neogaf.com/forum/showthread.php?t=471687
Nintendo recently reported a first ever financial loss of about 45 billion (or 553 million dollars) at their investors meeting. Analysts have been saying that Nintendo needs to take drastic measures if they want to turn a profit for this year. Some recommend that they sell the Wii U at $350 if they want to break even, others state that with the emergence of mobile games, they should allow their franchises on the iOS and Android platforms.
Now, I know I shouldn't be saying this considering I'm going for a business degree myself, but fuck fuck fuck what the analysts say. I realize Nintendo has an obligation to increase their profit margins for them but seriously, what the analysts are proposing is the worse possible situation that would harm Nintendo to the point of possibly kicking them out of console development.
First let's start with the proposed idea of selling the Wii U at $350. Let's also assume that it costs about $240 to make; console, controller, game pack-in and all. Nintendo could choose to make $100 off of every Wii U sold (with a deviation of -20 dollars), and again, let's assume the sales are 2 million at that price point for their fourth quarter fiscal year (that would be from December this year to March 31st of 2013). That would give them a profit of 200 million dollars. The Wii in 2006, between the same time period sold, according to vgchartz, 5.84 million units, and Nintendo earned about 40 dollars off of every Wii sold (according to Joystiq at a production cost of 200). That gives them about 233.6 million dollars.
Now lets assume they sell it at the very much proposed $300 dollars. Sales we can guess to be 4.2 million units but this time they only receive, let's say, 50 dollars off of every Wii U. That gives them 210 million dollars. It isn't that much more, but assuming the the law of supply and demand are correct, Nintendo should sell more for less than if they were to sell it at $350. The 3DS, if people already forgot, sold about 4.70 million units (wikipedia says 4.32 by June 30 2011 so I rounded up to an extra 700,000 sales before the price cut in the end of July) in the same four month time span at $250 (and Pachter thought that was too low, HA), chopping off two weeks before the cut. The 3DS cost about 100 dollars to make, so they were making about 110 dollars off of every 3DS sold. Which would give them 517 million dollars, which, even though that is more than the other consoles (estimate numbers, so it could have sold less), it is important to remember that Nintendo estimated about that much to be sold on release. So to sell the projected amount months after is not good.
Moving onto their next idea, releasing their franchises on the iOS and Android platforms (even though Nintendo stated that if they go down, their franchises are going with them). This is the stupidest idea I have ever heard. If Nintendo does that, then there sales would drop drastically. And I'm not talking about releasing a full-blown Zelda on an Apple device or console, I'm saying like Pokemon or something capable of fitting on Apple's device. If Nintendo released and re-released all Pokemon games for the 3DS and iOS devices, there would be no point in getting it for the 3DS. They also would also lose creative control over the Apple iOS version in terms of price-structure. There is a reason why Nintendo makes the amount of money it does, it's exclusives. If they didn't have those, Nintendo would be like any third party developer or second-tier developer for Sony (I doubt Nintendo would join forces with Microsoft if they had to choose). Granted, they could gain money, sure, maybe even a ton, but analysts are so hyper-fixated on the short run that in the long run, Nintendo would be losing money.
God, all this financial doom and gloom just needs to stop, period. Nobody is talking as much about Sony and their 6 BILLON dollar loss (though Sony is getting a lot of press). Sony isn't just a game developer I know but that's no excuse. Same with Microsoft, nobody talked about them constantly losing sales for years due to the RROD. Whatever, analysts can say what they want, but I have faith that Nintendo will profit off of the Wii U, maybe not like the Wii, but definitely not catastrophically fail.
I want this to be a honest and reasonable discussion, so go ahead and give your thoughts on the situation.
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I may not be a Nintendo fan, but surely Nintendo is far from "Doomed".
as you have said, FUCK the analysts. This will all depend on the Wii-U's games now. If they don't attract game developers, the Wii-U could be in a shallow grave. Supporting 3 consoles at the same time is no small feat, even for Nintendo. That alone, takes quite a lot of money. This has to succeed.
If the worst that you presume would happen, allowing their franchises to other consoles can help them back on their feet (If they were to go bankrupt). I agree that if they do, this could mean defeat on the side of Nintendo.
I have this feeling that either the Wii-U overshadows 3DS, or the 3DS could overshadow the Wii-U.
just my two cents~ I'm looking forward to the games the Wii-U will have though... Good Luck to them.
as you have said, FUCK the analysts. This will all depend on the Wii-U's games now. If they don't attract game developers, the Wii-U could be in a shallow grave. Supporting 3 consoles at the same time is no small feat, even for Nintendo. That alone, takes quite a lot of money. This has to succeed.
If the worst that you presume would happen, allowing their franchises to other consoles can help them back on their feet (If they were to go bankrupt). I agree that if they do, this could mean defeat on the side of Nintendo.
I have this feeling that either the Wii-U overshadows 3DS, or the 3DS could overshadow the Wii-U.
just my two cents~ I'm looking forward to the games the Wii-U will have though... Good Luck to them.
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If Nintendo re-released the CLASSIC games like all the old gameboy games of Pokemon, Mario, etc, that would be a nice little boost. Sure, lots of people pirate. But also, lots of people don't. I think if they revamped the Gamecube compatibility and made it possible to actually play them, as in actually have them in stores, they'd havelots of money. Hell, all they got to do is re-relase N64 games. All those games like Mario, Turrok, Bomberman, 007, and everything else would be pure gold. Microsoft was smart and snagged the original Perfect Dark.
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Kaimax wrote...
Pokemon MMO, nuff' said.You speak the truth my friend, but in do time. Maybe that will be there megaton at E3 *a man can dream*.
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Cruz
Dope Stone Lion
Pokemon does not need an mmo to be successful.(I kinda don't want one either)
And the "Nintendo is Doomed" articles get annoying after a while. C-net does like 3 every year.
And the "Nintendo is Doomed" articles get annoying after a while. C-net does like 3 every year.