Nintendo's lavishly-illustrated 2013 Annual Report is now available for download, and comes filled with all kinds of numbers and figures relating to the company's financial well-being.
However, it also features a message from Nintendo President Satoru Iwata, who states that it is his aim to return the company to its traditional profitability by the end of the current financial year.
Since the launch of the Nintendo Entertainment System in 1983, Nintendo has been offering the world unique and original entertainment products under the development concept of hardware and software integration. In the field of home entertainment, where there are few Japanese world-class industries, Nintendo has established a well-known brand truly representing video game culture throughout the world. Our basic strategy is the expansion of the gaming population, which is to encourage as many people in the world as possible, regardless of age, gender or gaming experience, to embrace and enjoy playing video games.
The Nintendo 3DS system, which we launched in 2011 as the successor of Nintendo DS, has such features as 3D gameplay without the need for any special glasses and various communication functions, and thus offers a wide range of entertainment. Also, we released the Wii U system, the successor of Wii, in the year-end sales season of 2012. Wii U has a new controller named the Wii U GamePad with a 6.2 inch touch screen. The Wii U GamePad enables a variety of gameplay, and proposes deeper game experiences and new entertainment that people have never had the opportunity to enjoy before. We will continue to offer software and services that take advantage of the unique features of our video game systems and strive to accelerate the sales pace of our platforms by communicating their unique value to a wide audience.
Regarding our network strategy, we introduced a network communication system called Miiverse where game fans around the world can share and discuss their game experiences, and have opportunities to empathize with one another. Furthermore, for the purpose of adapting to the changes in the environment surrounding the video game market and increasing our business opportunities, we are continuing to expand our digital business by offering paid add-on content, digitally distributing packaged software and so forth.
We reorganized our development divisions in order to make hardware and software development more efficient. In order to offer various software titles, we advance joint development with outside software developers and build an environment, such as Nintendo Web Framework, which provides a way of developing the Wii U software using web technologies. Thus, we strive to strengthen our medium and long-term competitiveness.
Nintendo posted an operating loss for the fiscal year ended March 31, 2013. However, we strive to regain “Nintendo-like” profits for the fiscal year ending March 31, 2014 by providing many people with fascinating games and services. We continue to make brand-new and unique proposals, and make efforts for the growth of the home entertainment industry with a mission that is to pleasantly surprise people and put smiles on the faces of everyone Nintendo touches.
With a line-up that includes Mario Kart 8, The Legend of Zelda: The Wind Waker HD and Pokémon X & Y, there's an excellent chance that Iwata's promise could come true. What do you think? Leave a comment to tell us.
[source nintendo.co.jp, via nintendoeverything.com]
Comments 54
In Iwata we trust
@MadAussieBloke Yessir!!!
@MadAussieBloke I concur
I don't think it is possible, I think it is certain. They have hit a speed bump with the consoles timing that all comes down to when they started its development. In terms of the market they should have released a year earlier, they stuck with tr SD wii slightly too long and missed a window. Secondly they actually released slightly too early in terms of the wii u's development. The software was lacking, the operating system slow, the virtual console wasnt ready and there was no marketing in its lead up.
They are well on their way to establishing on initial promises towards the end of its first year (end of November 2013) which is relatively fast considered against what was offered by previous consoles in there first twelve month.
I also think we'll see a strong and expensive advertising campaign in the lead up to Christmas this year which is why the initial campaign at launch never happened,
If he thinks about the profits like the nintendo/rareware glory days he can just forget about it... but i trust that he might turn the situation of wii u around, i believe that with the right software like F-zero, Metroid, StarFox, 1080° snowboarding, wave race, battallion wars, an open world zelda & mario title & a new MOTHER title Nintendo just might sell around 15-20 million wii-u's of these games alone. And if Nintendo was smart they would just buy Atlus, SEGA & PlatinumGames inc. that alone would make them the kings of eastern market
Haha, yeah.. Good luck with that Iwata. I know this is just to please investors, but I think it would be more reassuring to hear something that sounds realistic.
@MadAussieBloke Hell yeah.
He's getting real long winded now, I guess the one liner apologies were getting mocked too much lol.
If anyone can get the WiiU printing money it's Iwata.
Look at what the microwave has done to society. "We want it and we want it NOW!" Wii U launches with no 1st party titles and therefore little advertisement. Yet, "We demand million of units sold, RIGHT NOW!" Nintendo prepares 1st party lineup consisting of popular, must-have games. Day 1 of Pikmin release, "Pikmin's not moving consoles, Nintendo must be doomed!" Every game that releases for the Wii U, "Game X hasn't turned around Wii U's fortunes, Nintendo should put Mario on my iPad!"
[shakes head]
Instant gratification does not apply in real world economics, business, or marketing. The Wii U's fortunes will not change by Friday, and if I may even be so bold- the Wii U's fortunes will not really start changing until fall/winter 2014. The fall 2013 lineup will need time to resonate with consumers, but given a year on store shelves, along with new releases in 2014, I truly believe holiday season 2014 will be the event horizon of the console, as 1st party appeal reaches critical mass. Give the Wii U 2 years without constant backseat analysis, come back, and we can talk about the best selling console in the market.
About the GamePad, Iwata you need to get your developers working on second screen gaming that you can interact with & is useful. DICE BF4 uses second screen as an option, & what thay've done is actually useful. & seeing as that is there first attempt, it's a lot better than anything i've seen on the Wii U, surely your not going to be beaten at your own game, are you? Next-Gen is here and it's bring second screen gaming.
@JaxonH I think your spot on mate.Its a marathon not a sprint. And time after time nintendo pulls through. I like Iwata san,i like Reggie too,im not saying they are perfect and never make mistakes,ofcourse they do.the wiiu launch a prime example,but just like the 3ds it'll pull through. Will it win this gens console race? Doubtful but it'll make nintendo a profit and ensure they can continue putting smiles on the faces of everyone they touch.
Now that wasnt bitter was it peach64?
Based Iwata, he is one of the greatest CEO across the board not just the games industry.
This fiscal year, just make a profit. Next fiscal year you can return to crazy Nintendo llike profits.
I get the feeling that Nintendo wrote certain yearly losses down to Quarter 2, and had the titles due that time (Pikmin, Wonderful 101) moved to Q3, so Quarter 3 looks far more healthy. It's sensible bookkeeping and PR.
I would suggest them trying to... I don't know, maybe actually advertise their console?
@JaxonH Totally agree.
@The_Joker
I'm surprised they didn't do that. The only game they put ads for was sing, they were mediocre ads for a mediocre game. Nothing else. Their marketing is one of the worse that I've seen.
Let's go Nintendo time to ramp up.
Not concerned for Nindi, but the other two and the big 3 publishers are going to have a tough 2014.
Nintendo has been improving, I'll give them that.
We stopped at a Gamestop yesterday and they have several playable WiiU demos now (Game and Wario stood out, but also NSMBU, Rayman and Sonic Racing Transformed) and even a Wiimote-nunchuck for 2 player. The cash register had Pikmin 3 strategy guides piled next to it. Think what you will of strategy guides but it was nice to see Gamestop promoting a WiiU game. And with W101 and Pokemon Rumble U - and it's Skylanders like toys to promote the NFC ability of the Gamepad, no portal required - things are looking up as summer holidays are over and people are looking towards the holidays when WW HD and SM3DWorld get released. (I don't personally see another DK game as a big system seller for the general public though I realize others do.)
OTOH, the holidays also bring the $399 PS4 and $499 X1. I understand why Nintendo recalled the $299 white basic as it wasn't selling at all due to it being too gimped compared to the $349 Deluxe, but by removing it from US stores they also removed the consumer friendly $299 price point, leaving only the $349 price, which just doesn't look very good compared to what else will be available this holiday. Not only PS4 and X1 but PS3 and Xbox360 likely at $199 and probably a $99 Wii. I know Nintendo will lose money on a $299 Deluxe package but the $349 hasn't been selling to this point, even with some new games it won't start flying off shelves now, whoever wanted it has already purchased it at that price. Hopefully they are waiting for Sept. when Sony and MS announce launch dates, they can announce the price drop and grab some headlines. I honestly think at this point sales won't increase enough at $349, even w/ the upcoming game line-up. Though if the US got the Pikmin 3 package that Canada got I would have bought 1 Sunday, so maybe Windwaker and Mario bundles would do the trick. Nintendo Land is a non-starter.
@rjejr as much as we all wanted a Metroid Prime out of Retro people love Donkey Kong Country and it's one of the few western titles that do well in Japan.
Nintendo should have waited until this year to launch, launching with 2 Mario's, DKC, pikmin, wonderful 101, zombiu, WW HD, Sonic lost world, Game and wario, nintendoland, Wii fit, Rayman probably would've been exclusive, the upcoming 3rd party games, given devs an extra year, less last gen ports, made deluxe 300 and basic 250, bundles, and done an all out marketing campaign.
Nintendo and Iwata steppin' their game up. Nice.
I still don't have a system seller for Wii U. I haven't loved a Mario game since the SNES days, I LOVE Wind Waker, but an HD version does not sell the game (which I've played to death) or the system.
I think the triple threat for me would be the following Wii U Titles: (a new) Shinobi, (a new) Metroid, (a new) Zelda. That would convince me to buy a Wii U earlier than I expected.
@rmeyer - "do well in Japan."
I can see DK doing well in Japan, guess my view is more US-centric. I see DK as a game people with a WiiU will buy, but people won't buy a WiiU for, so bundling it wouldn't help WiiU sales very much. Though a DK bundle would still sell better than a Nintendo Land bundle, but 160,000 in 3 months isn't much competition. I think they need a Windwaker or Mario 3D World bundle this holiday if they want to sell the system.
Good Good news for the Wii U peeps.
got some news guys, from the project car log:
Build 531 (2/8/13)
WiiU:
Build 527 (29/7/13)
WiiU:
Build 525 (25/7/13)
WiiU:
Build 524 (24/7/13)
WiiU:
Build 523 (23/7/13)
WiiU:
Build 522 (23/7/13)
WiiU:
Build 520 (19/7/13)
WiiU:
Build 519 (18/7/13)
WiiU:
@rjejr I think Nintendo is still in a good spot this holiday. The 3ds was the same issue. There simply were no mainstream games it's first year, hopefully Nintendo will package in Nintendoland and sell the thing at 299. Activision stated a few months ago that they were afraid of the dismal Wii u sales but afraid of the industry as a whole. The space might be smaller due to the iPad and the tablet market.
Hey Nintendo remember TVii, when you plan on releasing that in Europe? And while you're at it release a Wii U with bigger on storage memory!
Not worry. Nintendo will try it around and it will be business as usual. Maybe the Wii U haters will even shut up...
The sleeping dragon is soon to wake from it's 8-9 months slumber to reclaim the cloudy skies.....too over the top?
@rmeyer - Hard to compare the 3DS to the WiiU. From Wiki:
"The Nintendo 3DS was first released on February 26, 2011.[22][23] Less than six months later on July 28, 2011, Nintendo announced a significant price reduction from US$249 to US$169 amid disappointing sales."
The 3DS came out in the dead of winter and 5 months later had a 30% price cut and then a few months later had SM3DL and Mario Kart 7 (within it's 1st year BTW). The WiiU would need to drop from $349 to $249 and need Mario Kart 8 out sooner rather than later to see an equivalent turnaround. The 3DS also only had the DS and PSP for competition, the WiiU has a lot more to contend with this holiday.
I hope the WiiU does well, but it will probably never turn around as well as the 3DS, and it will take much longer to get to the 32m the 3DS has sold.
Well, I'm certainly getting Mario Kart 8, The Legend of Zelda: The Wind Waker HD, Pokémon X and more. If other Wii U and 3DS owners think like me, Nintendo might make some well earned money.
@Phle Yeah Ninty, Sega and indies will be taking all my gaming funds for the next few years that is for sure
@Phle I'm getting all those games and more in the coming months, so I would say Iwata is being fairly realistic
I love Nintendo... but let's be real... they are really falling apart as of late. Wii U is as uninspired as it's name. Why is there no new Zelda? Why are there 34 different versions of Mario. What happened to all the titles that built a legacy on Nintendo first. Games like Castlevania, Metal Gear, and so many others left their platform a very long time ago. They've failed to secure many new IPs. They failed to build strong third party support. They developed a console that gets bashed monthly by a different developer. Their key titles are missing in action like Zelda, Metroid, and so many others. They have become the system for little kids with titles to match that preference.
Everything that made Nintendo amazing is dying. I was there in the beginning. I had the original NES console. I stuck with Nintendo through all their consoles up to the Wii. This is the first time a console of theirs had zero interest for me. They loved up. If you love Nintendo that's great. I do to. But stop living in denial. They are in serious trouble. They are not going out of business. It isn't that dire. But they may be one console away from being a software only company if they don't pull their head out of their donkey.
@DESS-M-8 if the Wii U still sells at a 160k per quarter, then ya you might be right, but I don't think anyone in their right minds believe the Wii U will sell ike poop after this holiday season...
The console should start selling like a normal video games console in December of this year..... with all the amazing titles coming out early next year, it will sustain the momentum of the holiday season. The majority wont be able to resist MK8 and Smash, the niche can't refuse SMTxFE, Bayo2, and X. By the time January rolls around they should be ready to talk about the new Zelda (and actually show it for 2014 E3)
Nintendo seems to have their bases covered to bring this system back from the dead.
@banacheck Have you played Pikmin 3 yet? Nintendo has actually accomplished something innovative with a second screen... The ability to multitask in a strategy game. Previously that was only possible on PC. Console RTS games have been total and utter crap, and thats because of the control method.... Nintendo has two great controllers working in tandem to create one heck of a RTS. Gamepad for multitasking, way points, map, while Wii Remote used just as efficiently as a mouse/keyboard combo....
Other genres that weren't possible on consoles before, will be because of these innovations (think MMORPG's. Sony tried to put Everquest on the PS2 and failed miserably because of the controller, but the Wii U will be able to pull it off with a WoW like game)
I know WiiU will be on top soon after the release of those great games, my pocket is crying!!!! but with happiness!
@VictahVonDoom "Why is there no new Zelda?"
Because the last Zelda was less than three years ago, and games like that take time to develop. The main reason we are getting WWHD is to give us Zelda in HD to play while we're waiting for the proper one.
Also, with Yamauchi as major shareholder and 10 billion dollars in the bank, Nintendo is not going third party any time soon.
@MadAussieBloke what you said
@rmeyer
This is true. Metroid only sells in North America, particularly the US and Canada.
@banacheck
I agree about Nintendo needing to do a better job of gamepad implementation. They're the ones who created the second screen mechanic, and have done a tremendous job with two screens on the DS and 3DS, most recently being Mario & Luigi: Dream Team. Yet many of their 1st party titles do not utilize the screen to the extent I had hoped (exceptions being Nintendoland, Game&Wario, and Pikmin 3- Wonderful 101 arguably does the best job but they're only publishing that game- it's not 1st party).
I understand that certain games just aren't a good fit for two screens, but SOMETHING cool could have been done. Take NSMBU for example- wouldn't it have been awesome if when you enter a pipe, you enter from the tv into the gamepad? Then play on the gamepad for that little section of the stage until you enter back out of the pipe, into the tv again?
And DKC Tropical Freeze may not be a game that necessarily should use two screens, but again, wouldn't it have been cool if, for the bonus areas, you're transported to the gamepad to play the bonus round and get the puzzle piece? This would also allow touch to be integrated into the bonus stages, bringing even more possibilities.
The biggest disappointment as far as dropping the ball on dual screen mechanics would have to be Mario Kart 8- don't get me wrong, the game itself is not disappointing, but they could have used the gamepad for so much more than a horn! I like the horn, and it should be one option for the player, but a rearview mirror would have been a natural fit, and useful. Maybe they are integrating this feature still... I guess we'll find out soon enough.
I guess it comes down to the fact that not all games are going to use two screens, and I'm actually glad they're not FORCING the mechanic into games it's not a natural fit for, like they did with Wiimote/Nunchuk. Better to only implement it where it makes sense than force it into everything for the sake of having the feature. I think if we give the console more time, we'll see more games using the gamepad in unique ways, particularly with Zelda U and Metroid U, whenever those games do come out. In the meantime, there are many 3rd party games that are nailing it- Batman Arkham City, Darksiders 2, Rayman Legends and Wonderful 101 come to mind.
@Phle Iwata, unfortunately most of us already have played zelda wind waker, most of us are not interesting on ports and Mario kart 8 will be great indeed but I dont think this game will save the wii U per se.
@MadAussieBloke Really? so you bought a next gen console just to play indie and sega games? that's interesting!
@VictahVonDoom
Well Doom, your name says it all doesn't it! lol. Ok, I can see where you're coming from, but honestly, the Wii U has been out less than a year. Obviously, console lifespans are at least 6 years, so there are many years of games to come. We can't have a new Metroid, a new Zelda, and whatever else you want all at launch or near after- these games take time. A new Zelda, built ground up for Wii, didn't hit the Wii until FIVE YEARS after its launch. Twilight Princess was a port of a Gamecube game, just like Windwaker is a port of a Gamecube game. And we just had a Castlevania exclusive on 3DS, and MGS3 Snake Eater 3D. Regardless, Nintendo should not be blamed for 3rd parties' arrogance anymore than a father should be blamed for his son's crimes. Nintendo is trying their very best to convince 3rd parties to bring games. They even made the Wii U easy to port to from PS3/360! But they can't force their hand.
As for the 37th Mario, that bit gets exaggerated by a lot of people on the internet. Nintendo has always used Mario in a variety of games to help sell the title- sports games, RPGs, golf, etc, But there's still only ONE mainline 3D platforming Mario per generation, perhaps 2 per gen now that the trend has been set with the Galaxy series. Even so, they're a couple years apart, and they're fantastic games. And the NSMB series sees one game per generation per console. That's NOT overdoing it.
Likewise, there is only ONE Mario Kart per generation, per console. ONE Paper Mario per generation, per console. They're not releasing more Mario games than before, they just released them in a smaller release window, so it seems like they're releasing more.
Every 1st party game Nintendo has dropped for the Wii U, thus far, has been the best of the series or close to, or an incredible exclusive. NSMBU is by far the best NSMB game, as Pikmin 3 is the best Pikmin. Game & Wario is debatable, but it's still damn good for what that series brings. Nintendoland is SO much better than Wii Sports, Windwaker HD is superior to its original, DKC Tropical Freeze looks better than DKC Returns, Mario 3D Land looks amazing (maybe not better than Galaxy, but still damn good nonetheless), and Smash Bros 4 looks like the best Smash ever!
And these games will come, but you must realize that libraries don't manifest overnight- it's a slow, steady progression over the years. Wii U WILL have a new Zelda (and will have an amazing GC port in just 2 months), and the Wii U WILL have a Metroid... you just have to be patient. All good things come in time.
I too, have owned all the Nintendo consoles, from NES to the present. Even all the handhelds. And I personally think Wii U is the best console Nintendo has ever released, bar none! You really have to own one and play it to understand- the console rocks! Simple as that. It's more powerful than all it's past consoles, MUCH more powerful, it's got dual analogues on the Gamepad and Pro Controller, it's got a second screen on the Gamepad (which really is the best thing about Wii U- I couldn't imagine playing some games like Arkham City without it now that I've tried it), it's got full online integration, Miiverse, eShop with full retail releases, a Nintendo Network ID instead of codes to swap... I could go on.
The point is, Wii U receives a lot of unfair criticism from people who don't own the console. Wii was a console with incredible appeal, but was mediocre delivering the goods. Wii U is a console with mediocre appeal, but is incredible when it comes to delivering the goods! You really should give the Wii U a chance. It's going to get all the great games you and I love (we just can't have them all Year One), and it really is the best console Nintendo has ever made, whether it's selling good or not.
@JaxonH Look people i don't want to see Nintendo fail as a console manufacturer. It just makes me mad when ppl deny the obvious. And believe it or not my wife just come home with a WII U lol. We put in a few hrs in ZombiU... best zombi games for me in a long time.
@VictahVonDoom
No, that's not what I thought- I just wanted to share some perspective, that's all. Glad to hear you got a Wii U! ZombiU is a great game- and very stressful lol. I'm always afraid some zombie is going to jump out from a corner and kill me!
I'd also recommend NSMBU, Pikmin 3, Batman Arkham City, Sonic All Stars Racing Transformed, and the Rayman Legends Challenges App (free on eShop)
@JaxonH Thx man..you were right about the WII U. My Ignorance got the best of me.
Don't worry guys Nintendo is going to be a third party company or just make games for mobile devices at the year 3013.
@JaxonH You took the words right out of my mouth, and arguably elaborated a lot more than I would have. The Wii U is a great piece of hardware, sadly though, it was and has been very lacking in its game library, which is in my opinion the biggest reason for its initial failure in the market.
But with new major titles coming to store shelves soon, such as Mario Kart 8, Super Smash Bros. Wii U, Super Mario 3D World, The Legend of Zelda Wind Waker HD, Donkey Kong Country Tropical Freeze, and possibly some new Metroid (HOPEFULLY) and Zelda games, along with the recently released Pikmin 3 and many 3rd part releases coming soon to the Wiiu, I believe it will prosper more than you would think by the end of 2014.
@PEDRO12
Right. Sometimes I get to the point I just can't take anymore backseat analysis of the Wii U, and think about whether I should avoid online gaming sites for the next year, come back, and join the conversation again once everyone's past the constant day-to-day sales discussions. But I love being a part of the Nintendo community too much to ever do that. Still, I can't wait for this console to start flying off shelves so I stop hearing about it's sales numbers every time I log into a gaming site lol...
Yeah that's right... I still prefer playing my older Sega systems over the PSBOX
All about making money
I think they've peaked in terms of profits. We'll never see the same kind of numbers as the Wii and DS years again, from any console. Those sales figures were insane from 2007-2009.
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