News Article

Nintendo Confirms Yearly Net Profits, But Higher Than Expected Operating Losses

Posted by Thomas Whitehead

Wii U sells 3.45 million units, missing four million target

To start with, Nintendo's financial results for 2012/2013 aren't as bad as predicted yesterday by Bloomberg; in fact, if you're just interested in the balance sheet Nintendo's affairs are in the black — the net income when all is said and done is a profit of 7,099 million Yen, which equates to around $71 million. This is a fair bit lower than the net profit of 14,000 million Yen projected in Nintendo's Q3 results at the end of January.

When you drill down into the results that really matter, those of operational profits and product sales, the outcome is generally worse than projected by Nintendo in Q3. The operating income — which reflects how Nintendo's core business is performing — brought a loss of 36,410 million Yen, which equates to roughly $366 million; this is significantly worse than the estimated 20,000 million Yen loss of January and almost reaches the same level of operating losses as in 2011/2012. In that respect the net profit, as opposed to another punishing loss like last year, is attributable to factors such as the weakening Yen currency and mainly external factors; the business of selling consoles and games has again been a weak point.

To get away from these numbers to more familiar themes, how are Nintendo's systems doing? The financial report states that while the 3DS is the leading platform in Japan, overseas momentum is still insufficient; in total 13.95 million 3DS systems were sold worldwide, with over half being XL models. Most sales were in Japan (5.69 million), with North America (4.27 million) and other territories (4 million) lagging behind; overall 3DS hardware sales are now standing at 31.09 million units. Nintendo is projecting 18 million 3DS hardware sales in the coming year, with a large stated focus on the eShop download platform. The transition from DS continues, with the older hardware clocking just 2.35 million sales — 2.11 million of which were in North America.

The big weakness has been Wii U, with sales falling well below the initial projection of 5.5 million units and even the adjusted estimate of four million. As of 31st March the Wii U sold 3.45 million units worldwide — 920,000 in Japan, 1.52 million in North America and 1.01 million in other territories. They're undoubtedly disappointing figures — missing two consecutive targets — and Nintendo is giving itself the goal of selling nine million systems in this financial year. Sales of Wii, meanwhile, were well below the previous year at 3.98 million units, outselling Wii U courtesy of having roughly eight extra months on the market for the reporting period.

In terms of top selling software, worldwide, Nintendo Land and New Super Mario Bros. U sold 2.6 and 2.15 million units respectively for Wii U — Nintendo Land was bundled with premium models. On 3DS the top performers are Super Mario 3D Land and Mario Kart 7, both with over eight million lifetime sales. New Super Mario Bros. 2 was the best seller released in the last financial year, hitting 6.42 million sales.

In terms of what's next, Nintendo's brief statement mentioned Miiverse on more than one occasion as a significant means of promoting Wii U — perhaps adding to rumours that the network will be available on other devices such as smartphones and PCs sooner rather later. In terms of its headline projection for the coming year, Nintendo is sticking with its previously stated goal of producing a 100 billion Yen operational profit for 2013/2014, a target that Satoru Iwata previously gave as a personal commitment.

We expect more details to emerge — from Nintendo's perspective — in a company presentation later today, while investor briefings will follow. We'll also drill down into the details of hardware and software figures and trends for a feature article in the coming hours.

So, what are your thoughts on these results? Sound off in the comments below.

[via nintendo.co.jp]

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User Comments (58)

timp29

#1

timp29 said:

Nintendo plans to use MiiVerse to do what... sell software. Thats great... but it's not going to move any hardware - which in turn would move more software. Whoever runs the marketing department for Nintendo needs to have some sense shaken into them.

Otherwise, it's always great to see Nintendo prove people wrong :)

erv

#2

erv said:

Quite low wii U sales, which to me is a bummer. We've just seen third party commitment evaporate with this report, lol.

In all fairness, they are turning a profit - this in a state that makes them actually very healthy: they just released a console which used go be a lossy time for console manufacturers, they are releasing in a time where the gaming demographics have changed, a time where the economics are down and where coverage to them has usually been bad. With a brand name that, well, makes people think this new wii controller is too expensive.

Microsoft will stick around, but this doesn't bode well for sony. Where nintendo will turn a profit the coming years out of a naturally improving situation, sony will be balancing the death toll on releasing another loss turning powerhouse.

Oh well, here's to more monster hunter :P

Lobster

#3

Lobster said:

Considering I invest in Nintendo, any report of profit is good news, but it's still disappointing as a lifetime fan to see them struggling. (Not that they are struggling too badly! But they are not doing as well as they'd hoped and that's always disappointing.) I'm glad they're back from reporting a loss, though! Still, there are surely myriad factors feeding into this.

I don't think they can swing nine million WiiUs this upcoming fiscal year. Not sure why but I just can't. Maybe eight.

Peach64

#6

Peach64 said:

There are positives in this. I didn't enjoy the Wii era. Maybe a lot of people here enjoyed a Nintendo console outselling the rest, but for me the games weren't as good as when Nintendo were under pressure with the N64 and the Cube. The only new ips we got were casual games or non games. I really hope this disastrous start causes Nintendo to refocus on the gamers.

You mention that Wii sold more than Wii U in 2012 because of the extras months on the market, but hasn't the Wii outsold the Wii U every month in 2013 too? These figures really can't be spun on a positive way. They're awful, but maybe it's the kick up the butt Nintendo needs.

ThomasBW84Admin

#7

ThomasBW84 said:

@Peach64 I'm not sure about the monthly sales for Wii U and Wii, but it's possible Wii has done better in the New Year with Wii U momentum falling badly. Wii sales were only a little over a third of what they were last year, too.

JSuede

#8

JSuede said:

@SanderEvers According to the report, they only plan to ship 2 million this year, which might be the last of their stock. Considering sales of the mini could help mitigate the loss taken on Wii U and help define it as a clear upgrade, it's not all bad.

Yeah, the operating loss isn't a great thing, but it is less than last year and improvement is improvement. They project to sell 9 million Wii U's this FY and to nearly triple the software numbers (13.42m -> 38m). Even if they miss the target by a similar margin to this report, that's still 7.7 million Wii U's...which is a bigger lead than the 360 had. With the software coming in droves (they are committed to the releases being awesome), 8 million definitely seems attainable, especially if there is either a minor price cut ($30 less for the deluxe unless production costs really drop) or more bundle offers. Bundling Mario Kart would be massive.

Another interesting thing to note is that Iwata will be adding CEO of Nintendo of America to his job title. Not stepping down from overall President and CEO, but ADDING responsibility. While likely just for the interim between CEO's, it could also be a permanent addition. Other positions in the company were instantly filled from retirees, so it could go either way. Hopefully it means that localization will improve, more 3DS XL colors (PLEASE) and quite possibly better relationships with Western 3rd parties. Instead of talking to a middle-man, they would talk directly to the head of the company.

@DarkLloyd Really? Sony has posted major losses for 5 years in a row, lost over $4 billion on the PS3, will only post a (net) profit this year because they sold 3 HQ's and a bunch of stock, their credit rating is literally "Junk" meaning any loans they have will probably not be paid back, will be selling another console at a loss, and don't seem to be doing any major restructuring.

Not saying they are doomed or extremely close to bankruptcy, but they really can't keep this up. When they release their financials we will see just what the damage is and where it is going. I really hope they don't get ahead of themselves with the PS4 projections....a high price ($450-$500...maybe even $400) will kill them at retail, especially with lower priced consoles that people (see: the general public) won't be able to tell the difference between graphically.

Haxonberik

#9

Haxonberik said:

Anyone could've seen them fail reaching their target after moving all their games out of March and losing the Rayman exclusivity, reason 2 of why I bought my Wii U so early on (forst being Pikmin 3). I even recommend Nintendo fans to wait before gettig a Wii U.

Alienfish

#10

Alienfish said:

Wii U is gonna pick up as soon as the big games start rolling in. There isn't any reason to worry, it's just that people wait nowadays until the title they want comes out since they don't have the cash to drop on any games they 'kind of want'. These analysts treat the market as if it has stayed the same, people are more cautious now.

Dinosaurs

#11

Dinosaurs said:

im confident this new era of HD for Nintendo will be good for fans, hopefully its good for Nintendo Co., Ltd as well.

GiftedGimp

#12

GiftedGimp said:

So two positives, Nintendo in Profit, unlike Sony, and MS xbox division and in 6 months WiiU has sold over tripple what Vita sold in the first 6months, and is over a million more than the Vita has sold to date.
Worldwide console sales of the WiiU have been on the up month on month the past couple of months, and the agressive marketing hasn't started yet which will happen once there's the games to back the system up... i.e Next couple of months.

Nintendo is doomed? this report clearly shows they are not, although could of been better, in terms of console sales meeting targets but that then again we don't know and if ps4 and/or Kinectbox will be meeting targets set by Sony/Microsoft.
To be honest I think one of them wont, if not both of them.

citizenerased

#13

citizenerased said:

Nintendo's not going to reach Wii-like sales because it hasn't convinced the mainstream. And why would they? Those people bought a Wii and then played on it maybe half a dozen times, for it to then collect dust. They got (rightfully) lucky with the Wii, but Wii U is more likely to sell Gamecube numbers.

Hardcore isn't getting Wii U (as primary console anyway), I don't think that'll be worth fighting for anyway. There's already 2 companies fighting for their attention...

Speaking of which, we're likely to see Sony and Microsoft struggle quite similarly, despite the hardcore's backing. Simply put, the hardcore crowd isn't big enough to fund these huge powerhouse projects in this economy.

I would personally love it if Sony and Nintendo teamed up for a dominant house console next generation.

ToxieDogg

#14

ToxieDogg said:

@Peach64 It took a little time for some of them to appear, but Xenoblade Chronicles, The Last Story, Pandora's Tower, Sin and Punishment (1st western release of a Sin & Punishment game), Red Steel, No More Heroes, Disaster: Day Of Crisis, Madworld, The Conduit and Tatsunoko vs Capcom were all new IPs that appeared on the Wii, and a long way from being 'casual' or 'non' games. None of those might have interested you, but I've really enjoyed them all.

Harrison_Peter

#15

Harrison_Peter said:

My list of things Nintendo needs to do is extremely long, quite in-depth, and who am I to tell them how to run their own company, so I'll keep most of my thoughts to myself.

But leaving aside what I'd do to bring back the Nintendo of old, here's a quick change they could make that would boost sales. It wouldn't improve 3rd party support, or improve the quality of games, or anything like that... it would just make them more money. Nintendo! Be brave, laugh in the face of the competition, and sell the digital versions of the retail games considerably cheaper. Maybe half-price. It's not so low as to compete with smartphones, but low enough to be more attractive than download prices on other gaming systems.

The point is, people buy a lot of games second hand, which is zero profit for Nintendo and the other devs/publishers. Nintendo know that, hence the push for downloads too. You can't sell your download to someone else. But if the prices are similar, people will rather have the retail copy. Firstly, it means they can resell it, secondly they might even be able to get it second-hand themselves. I'm not entirely against this, and I think there should always be retail copies available. But IF the digital copy could be downloaded instantly and was a LOT cheaper (say £20 for a £40) game, a lot more people would download it. I'm not saying more people would get their hands on the game, but of the people who do, a higher percentage will be downloading, resulting in less 2nd hand copies and higher profits.

XCWarrior

#16

XCWarrior said:

The video game market as a whole is down. This isn't a shock. Nintendo is going to be fine, but as @JSuede pointed out, it's Sony that is in the real trouble, especially when they sell the PS4 at a high loss. Going to be interesting what happens.

As for trying to stop used game sales by promoting digital, Nintendo is clearly already doing that. Just wish yeah, they would have a cheaper price for digital titles.

citizenerased

#17

citizenerased said:

@Harrison_Peter
I agree that digital content should be cheaper, but they'd have to sell more than twice as much online if they wanted that half-price tag to work out. I don't see that happening.

Harrison_Peter

#19

Harrison_Peter said:

@tealovertoma It's an interesting point... I've always loved Nintendo, especially when they were the most creative and inventive of the companies in the days of SNES, N64 etc. Great franchises. Sony has the advantage of being great for multiplatform titles (along with the Xbox but not Nintendo's underpowered consoles), but Sony now also has the added advantage of being the better company of exclusives. Nintendo used to dominate in 1st and 2nd party titles, but now Sony are definitely at the top.

I honestly think that Nintendo could become a much bigger and better company, and regain the trust and quality of their better years by becoming software-only. Give up on making consoles. Focus entirely on making spectacular gaming experiences with Mario, Zelda, and new IPs, really trying to invent new experiences and wowing us like they did in the past. Let other companies like Sony etc worry about the hardware. If it was a partnership with Sony I'd be extremely happy because Ninty and Sony are my favourites. But even if they kept the software open to other systems too like the Xbox, I still think Nintendo would benefit from going software-only. Trying to sell consoles, they're being screwed because 3rd parties don't want to create games for their consoles. It's extra effort. And those losses related to 3rd parties and the hardware are affecting the quality of the 1st and 2nd party software.

Harrison_Peter

#20

Harrison_Peter said:

@tealovertoma

You say double, but that assumes that everyone who buys a 3DS game for example buys it new. That isn't the case. In days when pretty decent smartphone games cost £1, a lot of people aren't willing to shell out £40 even for a recommended Mario title. The 2nd-hand industry is huge for Nintendo consoles. If everyone bought new, yes, digital would have to sell double if it was reduced to half-price. But considering not everyone buys new, think how many people would download the game ready to play without leaving the house, if it cost so little that it made the 2nd-hand purchase hardly worth it? The pricing would convert some of the 2nd-hand buyers into digital buyers (since the prices are similar). Now, you point out that a reduced price isn't great, but that reduced price will be money going to Nintendo. That same customer would have given nothing to Nintendo if he/she bought a 2nd-hand title instead.

Reduced digital pricing =
1. More actual sales due to reduced 2nd-hand purchases
2. Less piracy
3. Lower costs of publishing as the printing and packaging of retail games costs more than sticking a file on the eshop
4. An extra appeal when people weigh up the 3DS vs the Vita, where indie games are priced cheaply, but download versions of retail games are still extremely expensive

banacheck

#21

banacheck said:

The PS3 has been making a profit for over the last two years now, and selling a HQ does not mean Sonys doom. Infact according to Sony they are back on track to the road of recovery. And as for the PS4 selling at a massive loss is a load off BS fact, why do you think Sonys gone the way they have with the PS4. Dev's can make games on it easy aswell as porting games unlike the PS3. A lot cheaper to make unlike the PS3, and even with taxes and currency the console will not sell for $500 fact.

ULTRA-64

#22

ULTRA-64 said:

Thought this would be much worse, what with so many people working so hard, round the clock, non-stop on that immense vc launch line up!!! =)

banacheck

#24

banacheck said:

The Wii still selling more than the Wii U speaks volumes, for £300 in some people eyes it's overprice. Nintendo are known for being the least powerful console, and because of that fact people will just wait for prices from the next gen console. Or in till theres more games for the Wii U and it's not going for £300, they'll make do with what they got.

ULTRA-64

#25

ULTRA-64 said:

@banacheck in dream land there mate, the ps3 has to make money for more than the last 2 years of its shelf life to class as profit making overall. The 'fact' you mentioned is pure speculation as we don't know jack about what production costs are yet or even what it will be sold at. The only cost saving you mentioned that seemed real, for devs, don't save Sony money but the devs themselves. Many of which have publicly stated they cannot afford to produce next gen graphics games en masse....nearly every dept Sony run is losing money and they are in serious trouble of collapse, not now, but if things don't change soon. To think Sony are going to tell you what's going in behind th scenes is so stupid it's laughable!! And btw...$500 sound accurate for release prices =)

banacheck

#27

banacheck said:

ULTRA-64 s

please post links of this, dev's Cannot not make next gen games, because i've not been reading that. Sonys aready said the PS4 will not be $500, mass-market friendly after that fact, everthing i've posted can be looked up on the net simples. Forgot to say the PS3 will be around for a long time yet making Sony profit, by the time it's stopped being made they'll make some of that back what they lossed on the PS3.

MAB

#28

MAB said:

Sony will find it's gonna take more than First Person On-Rails Rope Shooters (FPO-RRS) to save them in their new generation ;)

banacheck

#29

banacheck said:

@MadAussieBloke

Are you sure, No.

"We were like yeah we hate to see all the PS4 games being FPS or action-adventure " Sony Computer Entertainment Worldwide Studios president Shuhei Yoshida said. "You know people like these games but these are not the only kinds of games that people can have fun with."

When trying to troll someone find some facts.

ULTRA-64

#30

ULTRA-64 said:

@banacheck the current games developer crisis shouldn't need explaining man, studios are closing down left, right and centre, as costs to produce games goes up from gen to gen only the big developers will be able to invest the time and money on 'big' games. Hence the surge of apps and indie small games for handhelds as they are cheap and profitable with not much investment/risk.
You might be right on the price, I'm not sure it will be that cheap but $500/£300ish on release would match the usual price band of Sony releases.
..."Forgot to say the PS3 will be around for a long time yet making Sony profit, by the time it's stopped being made they'll make some of that back what they lossed on the PS3"......so which is it loss or profit? That statement is oxymoronic!!!

Spoony_Tech

#31

Spoony_Tech said:

And in the mean time Animal Crossing and Pokemon X,Y cross over the 10 million mark by the end of this year!

ajcismo

#32

ajcismo said:

Analysts predicted a loss, Nintendo pulls out a profit. Good enough for me.

rjejr

#33

rjejr said:

Nice write up TW. And lots of relevant comments too, you should all be commended for putting on your big boy/girl pants today. Sony issues aside :-)

Couple of questions:

Did they break out WiiU Basic vs. Deluxe bundles like they did 3DS vs. XX/XL models? I've always thought 2 versions was a mistake. Despite people saying they want choices in life, they really don't. I'm sure at least a few customers stood staring at the 2 systems wondering if they should spend $300 for the no game system or $350 with the game and decided either way it was a lot of money so walked away instead. Not everybody, but some.

Did they announce WiiU "Nintendo ID" numbers? I think Mark dodged that question yesterday. Nintendo sold Wii as a game machine w/ limited online functionality, now they are switching gears and trying to sell WiiU as the "Miiverse" machine? If people don't go online they can't use Miiverse. And most people, in the US at least, already use Facebook so I don't see Miiverse as a "selling point". I'm looking forward to using it myself, but I wouldn't buy the system for it.

Wii - only games, casual games like Sports and fitness and dancing relying on easy to use Wiimotes
WiiU - Miiverse and digital downloads and ZombieU and a tablet controller

Gee, what could go wrong?

SkywardLink98

#34

SkywardLink98 said:

If Nintendo wants to make some money, reduce the price of the retail eShop games by $5. Runic was saying that a $50 at retail really only comes back as $14 to them due to the costs of boxing, transporting, and just selling their product. So they decided to sell it solely digital at $20 and get $15-20 depending on where they sell it. Since Nintendo owns the eShop they'll be getting near 100% of the money from a sale, so if they reduce it by $5 they'd get $30-35 a game. That's $20 more than a retail sale.

Nintenjoe64

#35

Nintenjoe64 said:

Glad they slightly beat Pachter's expectations! Now everyone can shut up and stop adding zeroes to the figures to exaggerate the losses!

Peach64

#36

Peach64 said:

@ToxieDogg I was specifically talking about a lack of new Nintendo IPs, but I should have been more clear. There were many good new ips from other developers.

Moshugan

#37

Moshugan said:

3.45 million units for Wii U isn't as bad as all the news made it sound.
I'm pretty it'll pick up once there's more interesting games shown and dated, and ofcourse available.

HeatBombastic

#39

HeatBombastic said:

@Haxonberik Why wait? Why wait until a new game comes, and than get the game? It's not like they're sure to have a price cut this early like the 3DS. If the Nintendo fans want Nintendo games that are sure to come, once the find the budget, I suggest they should buy a Wii U. Buying it now would show your support, and if it does get a price cut, I betcha' they'll be a NIntendo Ambassador program. I know how many people were upset missing that on the 3DS.

OverturePT

#40

OverturePT said:

@Peach64 Xenoblade, The Last Story, Disaster, Sin & Punishment are Nintendo IP's, I'd say that's not bad seeing how many IP's Nintendo already have (they can't handle them all tbh).

HeatBombastic

#41

HeatBombastic said:

@Peach64 "The only new ips we got were casual games or non games."

A bias statement. Not only did they make the ip's Overture mentioned, they also brought some back. Have you played Punch Out!! on the Wii? That made it into one of my favorite games of all time list since the NES version used to be there. Excitebike: World Rally was fun. I love how they brought back S&P.

Moshugan

#42

Moshugan said:

On the other hand, the majority of those 3.45 million were sold during the holiday season...

MEGAMAN_D

#43

MEGAMAN_D said:

This might make em pull their finger out and actually advertise the damn thing.

The whole of nintendos marketing department should be fired, and they should actually get people that know what their doing.

Like me :)

JSuede

#44

JSuede said:

@XCWarrior Maybe they will drop the price as the MSRP goes down to provide an equal playing field. The reason they don't offer discounted prices is so they don't upset the retailers by undercutting them. Disc sales would severely decrease and retailers would be less likely to buy software to sell if Nintendo was just going to ignore the prices.

That's what most people don't get about game sales. Walmart (for instance) doesn't take a chunk of its profits from new game sales and mail it off to Nintendo, they pay Nintendo for a certain amount of product at a slight discount (the % that they earn is taken out, plus tax) and then sell that to earn their money. If Nintendo went and undercut their prices, they might not even bother selling the hardware which would be a real problem. That's why in these financial reports the numbers are always read as "shipped" because they have already been paid for those consoles whether the retailer has actually sold them or not.

@sonic-doom Actually, just NOA's marketing department. Look up the UK launch commercial for the Wii U, it is immensely better than the US version. It actually has text that says it's a new console....imagine that. It could partly be why Iwata has taken over responsibility at NOA, they've got some serious problems over there. Also, marketing was down as a cost saving measure. Why pour all of this money into something you won't see returns from until the next FY? It would just make their losses look worse.

I think Nintendo is going about the whole "used game" thing in the best way that can be expected. They aren't outright blocking the games which would piss off retailers, they are just heavily promoting digital sales....possibly by understocking retailers a bit, but they are still getting their cut and can get used sales eventually.

Dpullam

#45

Dpullam said:

Mario Kart 7 and Super Mario 3D Land are doing incredibly well. Those games certainly deserve it.

Mr_Eyes

#46

Mr_Eyes said:

The purest way to have gaming fun is playing Nintendo. They seem to be the only manufacturer that has gaming as the focus. Not a multimedia device, no, it's a gaming device.
Nintendo's consoles are build around games and game ideas, not the other way around.
Nintendo hasn't released many sequels to their games, even if there are more than a 100 mario games. They make a new game mechanic and apply a character to it that fits.
There will always be people who don't like everything Nintendo makes. Often you will hear "Nintendo is only for kids" or "motion gaming is lame" and more. But those are opinions, not facts. Even the toughest hater has difficulties holding back a smile while playing one of Nintendo's finest games. It doesn't try to be cool, it tries to be fun and succees at that.
Nintendo has created and will continue to create some of the finest games that stand the test of time (so stop the graphic-discussion, please). Their hardware has only one goal: Play those great games. Most people play for fun and Nintendo can give them that like no other. When more of those first party titles hit the stores, more consoles will be sold. The install base grows and more third party developers have a chance of making a profit.
If there's one party who can survive the rise of mobile gaming. it's Nintendo. There are experiences you can only have on a Nintendo device. This is tougher to say for any mobile phone or OS, or Playstation or Xbox. Thanks to the combination of unique software on unique hardware.
I may sound like a total fanboy and maybe I am, but no matter what system I play and have lots of fun with; there's this satisfaction I get from playing a Nintendo classic.
There will always be a need for Nintendo games, for thousands of gamers.
The Wii U might sell slow now, and maybe even its whole lifecycle. But never count out Nintendo!

Ambassador_Kong

#47

Ambassador_Kong said:

An Operating Loss occurs when a company is not making enough money to cover the expenses of running the company. I imagine a huge part of this loss is caused by the under performance of the Wii U and the fact that Nintendo is building new facilities. An Operating Loss isn't necessarily a bad thing if the loss is taken because you are investing in your core business, so this isn't another episode of Nintendooooooomed!.

Nintendo is investing in new facilities, improvements for the Wii U (hopefully), and courting indie developers who will be the AAA developers of the future. These things cost money and, fortunately, Nintendo has plenty in the bank.

ThumperUK

#48

ThumperUK said:

@JSuede
Yup the UK launch advert is better than the US one, unfortunately it had to be withdrawn as it fell foul of advertising standards. Also, it was hardly played on primetime television, and six months later I've not seen another WiiU advert. I was expecting to see some heavy advertising from Nintendo for Monster Hunters & Lego City.....have not seen any advert for either. Until Nintendo spends some money on getting adverts out there, then the WiiU will continue to fail (and third parties will continue their exodus).

Luigi's Mansion did have an ad budget, and its in the top selling games this month......it aint rocket science to understand the connection between advertising and sales!!

Bulbousaur

#50

Bulbousaur said:

@SkywardLink98 Exactly. Reducing the price of eShop games to be competitive with the retail versions can only make them more money. I see absolutely no reason why they can't do it. As a consumer, I am going to buy what I can find cheapest, not what is more profitable to the seller.

banacheck

#52

banacheck said:

@ULTRA-64

I wouldn't say theres a developer crysis, as for game development going up in cost here is a bit of an article to say why last gen development went up in cost.

The last technology iteration caught folks by surprise, especially the number of people you needed the skillset jump that was required to do the work that people expected.

In the last generation the perception was that it was going to be a ten times improvement over the previous generation.

And so, budgets ballooned.

Developers will be "cleverer" about making next gen games-"they'll be a lot better prepared"

I really cannot see development costs going up this gen like you've just said, even developers say they'll be a lot better prepared this gen it might go up but not by a lot like last gen.

Melkaticox

#53

Melkaticox said:

@timp29 Just think about it:

"Our games don't sell on the Wii U!! We're not supporting the console anymore"

Third party developer

"Hey guys! I got an idea. What if we show games like Deus Ex Human Revolution, ZombiU and all that all over Miiverse? It's a great strategy!!"

Nintendo marketing guy

"Hey! Our games are actually selling on the Wii U! Let's give them Thi4f!"

Square Enix/Eidos guy

"Wait a minute, Ubisoft's and Square Enix's games are selling on the Wii U?! I WANT SOME (money) TOO!!"

Third party developer

-The end-

DarkLloyd

#54

DarkLloyd said:

To those that replied to me, yeah so it may be pretty obvious from a financial standpoint but thier brand is simply too big to be shutdown like that. beside last i read before this was thier tv division or whatever its called is doing worse then the gaming one.

JSuede

#55

JSuede said:

@ThumperUK Yeah, I heard that it was pulled because it didn't talk about Off-tv play. If they even allowed that one to air, NOE wins. I know the UK had some Lego City adverts, but they were likely played with cartoons which would explain that. Not sure about Monster Hunter though, which is partially on Capcom instead of Nintendo. NOA's Lego City commercial was more of that pseudodubstep garbage that shows people playing the game....but that's about it.

It makes a bit of sense what they did though. They aren't going to advertise the bejesus out of something when there is nothing new to advertise. They also don't want to throw marketing dollars around that will simply make the FY look worse than it was, since the majority of the returns wouldn't be seen until the new FY. They advertised LM2 because it had more going for it than "OMG A GAME IS BEING RELEASED".

I fully expect them to revamp things this quarter on all fronts. I wouldn't go as far to say that the VC will get tv spots, but maybe online ads, RE:Revelations, Deus Ex will get a push, W101 is still slated for Q2 which is interesting that Iwata didn't mention it last week, NSLU will be hyped, Game & Wario, potentially Wii Fit to get in shape for that beach body or whatever the hell

Haxonberik

#58

Haxonberik said:

@heatbombastic I live on Ecuador and bringing a Wii U from the US to avoid paying horrible prices isnt very easy. I wouldnt recommend doing this if you're not having any games to play yet, which are still hard to bring, even if not that much

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