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Nintendo Co. Ltd. Message Board

  • hahastocks hahastocks Jan 21, 2013 12:45 PM Flag

    Nintendo’s Wii U problems turn into a crisis

    Why does the pumper not post this? He claims he just post the news. This is from yahoonews

    In just a week, the problems Nintendo’s (NTDOY) new home console is facing have cascaded into something sinister. The traditional post-New Year slump hit Nintendo’s home market in the week ending January 12 and exposed cruelly how weak the consumer interest in Wii U truly is. According to Famitsu, Wii U sales slumped from a pace of 70,000 per week to just 21,000. The ancient PlayStation 3 sold the exact same number of units, which is nothing short of a debacle for Nintendo. The hot portable console 3DS saw its sales slow down from 305,000 units to 106,000 units. This means that Nintendo’s portable machine is now outselling the brand new home console by a 5-to-1 margin in Japan.

    No matter how weak the Wii U sales are now, they are likely to get worse. The launch dates of key games seem to be slipping from March quarter to June quarter, including the important Pikmin, Wario and Wii Fit franchises. The Wii U now must depend on Rayman and Lego City in coming months.

    This is a scary prospect, because it now seems that Sony (SNE) is planning to unveil the PlayStation 4 in May and Microsoft (MSFT) is expected to announce the Xbox 720 in June. Nintendo rushed its console out in late 2012 to get a running start before the big guns of the home console industry grab the consumer interest with their new machines. That gambit may now be about to backfire in a spectacular manner. As demand for Wii U is already fizzling in Japan and key games slip from the first quarter of 2013, Wii U faces a very hard January-March period. Sony and Microsoft are then inevitably going to start leaking information about their new consoles in April-May time frame in the run-up to their big unveilings in the second half of the spring quarter.

    The clock is ticking for Wii U. If consumers start smelling the scent of the grave emanating from the console just when Sony and Microsoft roll out their new gear, Wii U could face a sudden rejection in the market place by early summer. Nintendo needs some big new titles to revive its home machine very soon.

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    • this article is pure speculation-microsoft sold 784 systems in japan in the same week-does the 360 suck-i don't think so

      Sentiment: Buy

    • That article's poor speculation and logical fallacies aside, my opinion is that the market has already largely priced the WiiU's poor early showing into the current stock price. The entire industry is really slow right now. The 3DS is doing well considering and Nintendo has some massive titles coming out for it this year. System sellers like Pokemon X&Y. Also Nintendo has stated they are back to making profit on 3DS sales after the price-cut.

      The Wii U is having a slow start but that doesn't define its success long term. The X360 had 19 titles at launch and fewer titles by June 2006 than Wii U has now. Only 4 of its launch titles went on to sell over 1 million lifetime with its top launch title COD not clearing 2 million lifetime. Super Mario will pass that this year alone as will Nintendoland. X360 was launching during a great economy and still was behind sales of PS2. It also was clearly launched exclusively at the mature gamer with almost all of its titles of the more mature type. That type of gamer is far more likely to be an early adopter in my opinion than the majority of Nintendo's base and yet the 360 sold less in its first 3 months than the Wii U

      A lot of people will wait to buy Wii U until MS and Sony announce their consoles. Also a lot of people will wait for a Zelda, Mario, etc. Finally families etc. simply wait for prices to drop. If Wii U doesn't do well next holiday season then it's time for articles such as that but even then may be too early depending on the market and pricing (for instance Vita has had 2 holiday periods and done poorly but may rebound if it integrates well with PS4 and Sony drops the price and gets more great games for it).

      In my opinion Wii U worst case is GameCube like numbers. Considering the majority of those 20 million consoles would make money (launch and maybe at initial price cut excepted) I still think Nintendo would at least break-even all-in. That would maybe force them to abandon home consoles and publish only games - but even if that happens I think their IP alone is worth more than the $1.5billion it would need to justify its current price.

      It's hard to imagine Microsoft wouldn't pay at least $2B to get their hands on Nintendo which would open the Japan market to them where they get trounced by Sony and Nintendo. Not to mention that if either Sony or MS got Mario, Zelda etc. in a buyout they would likely be guaranteed to win the following generation.

      Sentiment: Strong Buy

    • workfromwork@rocketmail.com workfromwork Jan 22, 2013 7:25 AM Flag

      Nintendo is profitable even without the wii u. so consider the wii u as a bonus for now.

      Sentiment: Strong Buy

 
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