As those that follow Nintendo closely know only too well, major announcements and shocks aren't just reserved for E3 and the occasional Nintendo Direct. The company has a habit of dropping major news like it's a minor affair, and in the past couple of years has also reserved some notable news for quarterly investor briefings. As today's presentation by Satoru Iwata has demonstrated, however, when the heat from investors is eased the revelations dry up.
That's a positive, we should remember, even if our craving for more information and details continues unabated. In the past couple of years we've seen Nintendo tackle investor briefings in crisis mode, confessing to hideous losses and outlining strategies to ensure brighter days ahead. The tame presentation this time is partly a result of these policies working - despite dropping sales Nintendo is making a profit, and for shareholders that like to receive dividends that can sometimes be enough. We expect the Investor Q & A transcript to still pose tough questions around a dropping market share and the Wii U's toils in Japan - despite improvement in the West - but Nintendo isn't fire-fighting. The immediate reaction of the stock market after Iwata-san's presentation was essentially a shoulder-shrug, with a tiny increase in share value that amounted to "as you were, nothing to see here".
Aside from regurgitating some pleasing statistics on 3DS game sales, there were nevertheless some highlights and a couple of notable announcements. The main revelations were related to amiibo, which has proven to be a sales success for Nintendo while also leading to frustrations with stock problems. There was a reassurance that more stock will be considered for key figures - which we'll take or leave, as it's been said multiple times - but the vital detail was that Shigeru Miyamoto's previous musing on the potential for cheaper, easier-to-produce amiibo cards will be a reality this year. These may not be the ideal option for collectible romantics, but in terms of getting plenty of useful stock onto shelves they could be hugely valuable, not to mention useful for gamers that want amiibo functionality at a lower cost.
That seems like a smart, logical move, and we also have the interesting announcement of free software on Wii U that'll link Virtual Console experiences with amiibo. It sounds like a mix of NES Remix and the unlockable game demos we've come to know in Super Smash Bros. titles, and is certainly worth watching - it'll be another release that aims to entice more gamers to buy eShop content.
Aside from those amiibo details, the main narrative was on positive sales momentum - The New Nintendo 3DS out-sold the equivalent figures for the 3DS XL at launch in the West, there's a similar trend for Majora's Mask 3D and Monster Hunter 4 Ultimate, and the Wii U is still behind its competitors but has sales moving in the right direction.
On that final point we're seeing more evidence of a lack of panic about the Wii U's fortunes. Fans and analysts seem to fret over its failure to keep pace with PS4 and Xbox One more than Nintendo itself; in fact, the big N is ultimately more bothered about maintaining profits despite supporting struggling hardware. The company's been here before, of course, with the GameCube toiling but then being followed by the runaway success of the Wii. That's not to say there isn't ambition to be more than an also-ran in the current home console space, but a reminder that the company also backs itself over the long-term. The success of amiibo and the ongoing role of the 3DS in the market has perhaps provided a reminder that the Nintendo brand still has power, even if the Wii U isn't tempting enough consumers to splash out a few hundred dollars.
We shouldn't mistake a lack of panic for sloppiness or arrogance, either - though this investor briefing was light on strategy, Iwata-san stated in his introduction that all of the plans and ideas cited throughout 2014 are still very much on the agenda.
While we will further our endeavors to increase our Nintendo 3DS and Wii U businesses in the next fiscal year, we intend to simultaneously challenge ourselves with new endeavors which include our plan to take advantage of smart devices, more aggressive use of Nintendo's character IP and our new QOL improvement platform business. I am limited in what I can discuss about these efforts now, and I do not think I can successfully convey a big and comprehensive picture of our projects just by sharing with you some fragmented information on these multiple challenges.
Nintendo has plenty of challenges to face - it wants to return to 'Nintendo-like' profits, establish a presence on smart devices, improve its foothold in the current generation (portable and home console) to keep its systems and games visible in stores, and it has a lot of plans to execute to boost gaming brands and launch its QoL (Quality of Life) range, starting with a sleep sensor. That's a lot for Satoru Iwata's in-tray.
So it's not all rosy in the garden. Today is a reminder, nevertheless, that Nintendo isn't unaccustomed to challenges, nor is it in the mood to panic. At the moment it's a case of Keep Calm and Carry On, which isn't a bad policy to follow.
[source nintendo.co.jp]
Comments 40
Booooooooo! Quick! Announce gamecube and n64 so I can start selling my retro collection off, I need the space but love the games. Eshop solves both those problems for me
Also, announce preorders for pacman, robin, Lucia and Ness! I've not seen them available to preorder anywhere ever! Even when I checked straight after the release. There was only charizard and wario out of the 6
Or have all the preorders gone instantly and they only manufactured 10 of each?
What exactly are Nintendo-like profits though?
N64, GBC, GC and Virtual Boy times?
If Nintendo want people to buy more Virtual Console titles then why-oh-why do they not push weekly download info to the Notifications menu on the Wii U and 3DS.
Instead, they appear to only use that native advertising platform to promote their big titles.
This is dumb and a missed opportunity.
Secondly, most people would prefer to hear about what on Earth is going on with the N64/DS Wii U virtual console service.
Thirdly, could we please get more than a bare minimum of four virtual console titles a month on each respective system. I understand that Nintendo don't want V.C titles to cannabalize the sales of other V.C titles but this could be somewhat averted by releasing multiple titles spanning different genres each week.
@alLabouTandroiD I'd guess Nintendo-like profits is being considered as Wii profits (i.e. they will probably do anything to take the smartphone crowd back)
@Grumblevolcano Yeah, bein' realistic has never been their strong suit.
Personally i just want a proper account system and hopefully whatever replaces Club Nintendo will do just that. This being Nintendo means nothing is straight forward.
It's good to see that amiibo cards will be produced and hopefully they'll be available in abundance. I think these should have been available sooner to give people a choice. Personally i'm still collecting the Smash Bros amiibos as i like them but for other series unless it's a ltd edition then the card will be just fine for me. Also i've built my amiibos up on Smash so having a card i can swap info on is good for me.
As for there being no major announcements, i think it's a good thing. I do think a Nintendo Direct is incoming soon though even if it's to clarify what's happening with Club Nintendo. I hope flipnote 3d comes out soon too- i'm no artist but i have an idea i'm wanting to do.
I think a low key investors meeting was fine. They needed to be reassured and - despite an argument on whether they actually succeeded that - it seems like they just focused on that very reassurance.
@DESS-M-8 You may have missed out, depending on where you live. Pre-orders in Europe went up sometime between a few days and a week after the Nintendo Direct announcement. I think GAME in the UK had them up immediately after it ended. Maybe try asking around /r/amiibo on reddit.
So, I guess this means Nintendo's E3 will be mostly dominated by mobile apps and QoL nonsense.
Go Go Iwata!
Didn't say nothing in the meeting?
Tell us something in a Direct, will ya?
@Quorthon When you look at an empty glass, yes
I have lost sleep over my frustration for Nintendo. Thank goodness for their QoL platform.
I don't want to see Nintendo bringing new games to other consoles but offering a virtual console service for tablets would be a smart idea. There is no harm in bringing NES, SNES and Gameboy to tablets, it's kind of dumb not to. They could even release a bluetooth controller for the app.
Iwata is still working in Nintendo?Ugh
@Folkloner Agreed. You barely ever known when Virtual Console releases come out. Nintendo could stand to improve use of notifications in general on 3DS and WiiU.
So basically, sounds like Nintendo is doing fine right now. Not great, not terrible. Just well enough. They probably could stand to make more amiibo, but they don't seem too concerned about it. They said they are surprised, but certainly didn't save definitively they are going to ramp up production.
Probably the best Nintendo can do right now is appease the shareholders and the current install base. Continue making games (let then speak for themselves) and hope one of them strokes gold and drive more units. If they hype their big three right this year (i.e. Xenoblade, Splatoon and Zelda U) and throw in a few surprises, we could probably see an uptick in console sales. Nothing major, mind you, but respectable enough to ride them through another year of Wii U. If I was to hedge a bet, they're waiting for E3 to dole out any surprises they may have in store.
As far as Wii being labeled "a runaway success" I don't have a problem with the terminology. It was a success, at least hardware sales wise, if nothing else. It put a boatload of cash in it's coffers, and made investors happy. So there's that.
@alLabouTandroiD
Well, ya. Nintendo was very profitable during the span of all those systems.
@alLabouTandroiD Nintendo profited very well on GC era, i know that is hard for some people understand you can profit more selling less than the concorrence.
@DESS-M-8 Are you in Europe? Nintendo.co.uk had them all up for preorder about 2 or 3 weeks ago, the new Classic Super Mario ones too. Think all the preorders are gone now though.
@rennandovale
If that were really true, they wouldn't have taken such drastic measures to try different things with the Wii, and suddenly become so desperately afraid of competition.
They were technically profitable, but they weren't really successful or advancing in any way. The GameCube and N64 are what you get when Nintendo is forced to, essentially, "go it alone."
I'm still waiting for the DS VC ! I know GC and N64 are also in the list but DS was announced a year ago ! I can't wait !
Dang whys he gotta keep the regular new 3ds in his pockets now.
...The wait for Mario Maker is killing for some reason. lol
@ToxieDogg @DESS-M-8 My experience of it was reading an article on here to say they had gone up on nintendo.co.uk, checking as soon as i could(about 2hours) and finding all preorders had already gone. Preorders shouldn't be selling out...pretty much given up on collecting them now...
@blondeandy I agree with you, it's been a massive problem. Since the last lot of preorders went up, Nintendo.co.uk have actually put limits on of one of each amiibo per customer.
They really should have done that much earlier to stop people from buying them in bulk just to scalp on Ebay and Amazon marketplace. I've managed to get them all so far but I hate having to constantly scour the websites for preorder notifications every time new amiibo are announced in order to beat the scalpers. It really has sucked a lot of the fun out of collecting them.
RELEASE MELEE ON VIRTUAL CONSOLE! At least in the summer after there's been time for Smash Bros 3DS and Wii U.
Stop ruining lives Nintendo!
Feel exactly the same. If they make more stock available i may consider carrying on collecting but they do need to give people a chance to preorder either by signing up to receive one of each on release or at least warning when they will go live with preorders.
@Acein210 You should say "Stop letting Nintendo ruin your lives" instead
Thank god I am not a shareholder. The heads of Nintendo are totally lost, haven't got a clue anymore on how to properly run a business and have no clear business direction going forward. Putting money in its shares amounts to dead money at this point.
Great games for sure, but my god have they lost their minds in how they run the company.
Dogs and cats living together, mass hysteria!
@midnafanboy Getting rid of the guy isnt gonna do anything. Its like changing head coaches during the playoffs.
@Nintendobro It might change to get someone new who knows what he or she is doing and knows what people need or want.Like i don't know the regular new 3DS and maybe a restock of some amiibos?Who knows?Iwata doesn't that man is lost just like Nintendo is right now.
@rennandovale
Yes, Nintendo made very good money during the GC era but if you think much of that money was made by a rubbish selling GameCube you are mistaken. The huge success of the Gameboy and Pokemon etc., easily covered the liabilities of the GC.
That's why Nintendo won't do a Sega, because unlike Sega Nintendo has a top selling portable to cover the Wii U which is selling worst than the Dreamcast did.
@Quorthon A company don't need to be in trouble to inovate, your argument is empty.
@JaxonH The question would be if they were more profitable than now though. I just don't think the Wii U will sell any better than it did last year. Although i'd really like it to take off like a rocketship.
So making people believe that it can might just lead to frustration.
I just really hope they will put out the Virtual Boy line on 3DS VC.
There weren't that many games released for the platform and like five of those were only great. So release those, keep the head exploding red&black color as optional, but make other colour setups as the default ones like classic Gameboy green&black and white&black.
The 3D games like Wario Land, Mario Tennis, Tetris 3D just scream for a re-release on 3DS.
@rennandovale
What the hell is your post supposed to actually say? Granted, English may be your second language, but I have no idea what your point is or even remotely what you're trying to communicate.
I need Robin and maybe Lucina.
The amiibo cards sound like a great option to me, I prefer a figure but the demand is so huge and a option in form of card is a nice resolution to play the compatibles games, is a bad new for the collectors, but is a great chance for all the other people that just want to play can do it "plus" in a cheaper cost (including myself) I really desire play with all the cast from fire emblem in the newest "project name S.T.E.A.M"
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