Nintendo Loses Over $300M - A Wake-up Call for the Big N

Nintendo Loses Over $300M - Wii News at IGN

The above link is from the original IGN.com article that I got the original news from.


Nintendo is finally having the wake-up call that it needs.

Nintendo revealed its earnings for the 2nd quarter today and as a result had to adjust their income projections...by 82%! This in turn has facilitated a price cut of the Nintendo 3DS system from $249.99 to $169.99 starting August 12, 2011.

Now, we have known for some time that Nintendo was in its own economic slowdown with the Wii market oversaturating in systems but with no significant software titles to drive new customers or keep Nintendo Wii relevant (except for their normal Wii Sports, Mario Kart Wii...pretty much their own casual IPs)

In addition, according to the Wall Street Journal, the Nintendo 3DS, which started off with a bang selling over 3.6 million last quarter, has only sold a little over 700,000 in the last 3 months...which in the eyes of investors is pretty pathetic and a revealing truth of what the industry is going through at the moment.

And what are the (2) factors in my opinion...Apple and Nintendo themselves. Of course, we can factor in the economy and the tragedy in Japan, but Apple still out did themselves.

According to Reuters, not only did they beat quarter estimates by 33%, but they sold over $20.34 million IPhones this quarter...beating estimates by over 2 million and doing so with a new IPhone on the horizon! And what can you get on an IPhone...? Apps, games...mostly for free or chump change of $1-$5 dollars. Downloading it through a secure and easy to use network without having to insert a $40-$50 cartridge.

Not to mention, you can GPS, collect coupons, order through Amazon, take pictures, have MULTIPLE touch controls, and do almost anything...no gimmicky 3D included.

Apple in my opinion is doing it again in my opinion as a silent killer...creating innovative products in the essence of what Nintendo did in the 80s vs. Atari and puts their name and product in the hearts and minds of the world. Believe me, with an Apple TV in the works and their passion to go all in with the "cloud," Apple is setting itself to be a part of everyone’s lives. If they ever came out with a streaming gaming/movie/internet/uploading network...people will come.

As for Nintendo, I will not spend too much time on the obvious - they put too much into their casual Wii market and got sloppy. With their oversaturation, they expected a 3D system without glasses to automatically be the prime selling point of what is really a supped-up DS system. Honestly, I prefer to believe that the DSi (a disgrace to release in my opinion) is nothing more than what the GameCube was to the Wii. Not to mention, 3D movie sales have dropped and is still not a proven staple to the entertainment industry.

However, more importantly...where the heck are the games! Other than Zelda 3DS, once again like the Wii, there are no real games for the system. Software sells systems and the 3DS does not have it - especially with 3rd party developers pushing/cancelling games which is not a good sign for Nintendo at this juncture.

Then we have the Wii U. Which takes me to another problem I have had with the Big N - their pompous and ridiculous marketing and communication.

When someone walks away from a presentation, you should have a clear idea of what the presenter is attempting to accomplish with said presentation and exactly what you just saw. This was the exact opposite with the Wii U.

People were scratching their heads on whether or not Wii U was a new console or a peripheral to the Wii itself? Why so much talk about using Wiimotes and the balance board? And why was Reggie so skittish about answering questions about who developed the prerendered demos? That fact that we walked away from E3 asking if the Wii U was a Sega CD add-on is simply sad.

It is this crap that boils me over with my beloved N because they constantly shoot themselves in the foot while trying to present pompous talking points and expecting everyone to simply accept their point of view. Well, this all changed today when they proceeded with their biggest price cut for a recently released system ever.

There is so much I can say...but I will end with this thought.

Nintendo has always been about innovation and using established technology to its fullest. With the right moves, Nintendo could already be at the forefront of downloading, streaming, interfacing...if they would incorporate more into their devices (not just gimmicks), communicate more effectively with 3rd parties and their customers, and go back to what they did in the 80s before riding Wii train over the cliff.

In the 80s, Atari was simply a gaming company...but Nintendo decided to release the "Nintendo Entertainment System" - it was more than a gaming device...as even shown on the original box art. It was a device for the entire family to be entertained by and it changed gaming forever. Apple is now using this same strategy in my opinion; branching it to online capabilities, interfacing, streaming, and giving instant access to multiple features - not just games.

Reggie stresses that Nintendo is a gaming company.

Well, I hope Nintendo feels the urgency and takes a double take at that statement.

Sega was once an innovator...it is now merely a gaming company.

Feel free to leave any comments - thanks again and happy gaming!

Operation Rainfall: Source: NTSC Xenoblade Done, The Last Story In Pro...

Operation Rainfall: Source: NTSC Xenoblade Done, The Last Story In Pro...: "NTSC Xenoblade Finished Prior to E3 Nintendo of America Sitting on Announcement July 7, 2011 American localization of Xenoblade is compl..."

Has been quite a while since I have shared my thoughts on the world of gaming...but better late than never. So I dispense with the pleasantries!

As many have heard over the last few weeks, Operation Rainfall has been on the offensive, fueled by the motivation of angry Wii gamers, to get hard core RPG games released in the Americas.

Well...The Big N finally responded - both publicly and possibly privately. Officially, Nintendo stated that they had no plans "at this time" however, as the title suggests, according to an N-sider who wishes to remain anonymous, Xenoblade localization is complete with The Last Story in progress.

Wow! A little meaningful complaining can go a long way! However, none of this has been officially confirmed so we can only hope.

As a fan of Nintendo since the very beginning of the Nintendo Entertainment System (complete with ROB! and zapper), I have been sour with Reggie and the gang for some time. From releasing multiple DS/DSi/DSiXL iterations to a rushed 3DS debacle in my opinion, to their marketing campaigns and foolishly-structured press statements (i.e. commenting on slowing Wii sales and lack of third party game purchases), Nintendo has created hatred towards itself from the people who really matter - the gamer.

Sorry for that run-on sentence, but desperate times call for lack of grammar structure on occasion!

Is all of this salvageable...in my opinion...yes.

Bring these games over...not with silent releases, but proper marketing, advertising, price points and third-party agreement.

Then, don't stop there, bring on Another Code Wii! - There is a treasure trove of games that never make it to our shores…with special editions, giveaways…and I’m not talking about a special downloadable suit for a FPS.

People scoff that the American gamer will not go for said RPGs, visual novels, adventure games…I say they are wrong and this movement is proof of such. Not everyone in the world settles for shovelling in Call of Duty and Wii Sports! Do not misunderstand – I do not mock these games, but we the open-minded gamer expect more with artistic stories, characters and designs that keep our industry diverse.

In my opinion, the issue runs deeper than Nintendo releasing these games, but that is all the time I have for now.

You can click on the title of this blog post to read the full story from Operation Rainfall’s blog. I praise Operation Rainfall and every Nintendo fan who has voiced the truth.

If you have any comments about this issue, please drop a line below – happy gaming!