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Nintendo will miss profit targets according to analysts

nintendo-iwata-wiiu

While Nintendo is set to deliver a strong E3 line-up this year, analysts are predicting that Iwata’s pledged 100 billion yen operating profit will fall short during the next fiscal year. Iwata will announce the second straight annual loss tomorrow, as the company’s fiscal year ended in March 31st. Estimates put losses at 18.7 billion yen over the past 12 months.

As for predictions for the future, analysts expect Nintendo to post an operating income of 70 billion yen, which will fall short of the 100 billion yen Iwata stated was his “personal commitment”. Only 4 out of 20 analysts tracked by Bloomberg recommend buying Nintendo shares, with 13 recommending to hold them and 3 recommending selling.

Analyst Hideki Yasuda of Ace Securities Co. says that, “Iwata hasn’t produced good results in recent years. He can’t avoid being criticized.”

The current trend for the Wii U is mirroring Nintendo’s launch of the 3DS, which saw tepid sales until a price cut, the announcement of an Ambassador program and strong software sales have turned the handheld around. Perhaps Nintendo can do the same for its home console.

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  • weawdada

    And now i think about what happened to the 3ds

    • Guhtere

      And the complete opposite of what happened to the Vita.

  • Nintedward

    Nintendo is in a transitional period so its tough for them right now. They basically have abandoned the DS and Wii and are rebuilding their new platforms.

    Hopefully this struggle to get the 3DS and Wiiu installed bases up will pay off for them in the coming years with steady profits :)

    • Jizz Beard thePirate

      Well… I think the only struggle they really have to deal with now is the wiiU since the 3ds is making money faster than a machine that prints money and has a respectable games library.

      Can’t wait till e3 this year… Come on Nintendo, show us all dem games

      • Nintedward

        Yes you are right. But they HAVE been struggling with the 3DS for two years and that’s one of the reasons they posted their first ever loss , because of the price cut of the 3DS.
        The 3DS can only go up from here on , so like you say the only struggle now is the Wiiu. But even if it’s not THAT successfull , the Wiiu will be a nice little money maker for Ninty.

  • jjmesa14

    Well that’s a suprise.

  • http://www.facebook.com/people/Lindsay-Soall/1160113917 Lindsay Soall

    your last paragraph pretty much summed up what is most likly to happen . at least Nintendo make money ( for the most part ) on hardware ps3 ( 5 billion loss ) xbox( 3 billion loss) not to mention sonys struggling financial position . But i guess will just ignore that and rip on the big N . the wiiu launch as actually been more successful then the the 360 and ps3 launch . you loss money on launches its a fact.

    • http://www.youtube.com/playlist?list=UUYKptJ3wOiYnsvA5tNOT2TQ Blu_J

      I’m glad u bought that up, don’t forget the ps3 & 360 systems that kept over heating, & the yellow light of death for both systems. That happened to me 3times per system. But people want to forget about all that & focus on the last yr cycle when Nintendo stopped being to top game system sold. Not the first five yr of the wii when they were the top sold system ever. I agree with u good point.

  • Genesect4ssb4

    E3 is right on the corner. People need to stop being so dumb.

    Its all about timing. The wii u wasnt ready for worldwide recognition because of its bugs and small library as well as lack of system sellers (N4S and MH are niche games, though amazing in their right). By E3, 1 of the major updates will have been done, and great games will be released afterwards like TW101, Pikmin 3, Wind Waker HD, Watchdogs, MK WiiU, 3D Mario, etc. Plus SSB is a hype starter. Wii U will be fine.

    • http://www.youtube.com/playlist?list=UUYKptJ3wOiYnsvA5tNOT2TQ Blu_J

      The only thing I don’t agree on is besides watch dogs & wind waker HD all these games were promised near launch 2 e3′s ago. If they actually had of come out near launch like suppose to I think everything would have been ok. Especially pikmin 3….. I was in N.Y. When they were doing the tour of Nintendo before launch played it & it’s still being pushed back. It’s just hard to believe Nintendo with deadlines & release dates anymore which is not good for game sales. But I’m on the edge waiting things out like everyone else hoping that some good things will happen this summer. Fingers crossed everyone.

      • Fred

        I’d rather have them late and GREAT then on time and mediocre

  • DragonSilths

    Well lets see. Wii U launched 6 months ago. They are taking a $50 loss on each system sold unless 1 game is bought with it then they only get $10. Nintendo got sued by that guy about the 3D technology in the 3DS, Nintendo is making a new Headquaters in Japan which cost quite abit. So yeah Nintendo lost abit of money. Still isnt a big deal.

    • http://www.facebook.com/people/Lindsay-Soall/1160113917 Lindsay Soall

      well said

      • DragonSilths

        Thank you.

    • Magnus Eriksson

      Actually it is a big deal for Nintendo. They are businessmen not holding charity. They will pull the plug on this project soon if it wont start generating money.

      • Wayne Beck

        Actually, they are Brand Management Men. They won’t pull the plug on Anything. The Nintendo name is to Big to Admit to any kind of Failure(not that I think WIi U has even remotely failed).

        • Magnus Eriksson

          VirtualBoy?

          • Wayne Beck

            Was released when Nintendo was not a household name, video games were not mainstream entertainment and the total number of players worldwide was below 50 Million.

            Most people have never even heard of it.

          • http://www.facebook.com/AJ.Fowl Andrew Chambers

            One major failure isn’t that bad for a company. That was more then 20 years ago. PSP Go? Xperia Play? Windows Vista? Okay, so Vista wasn’t a financial failure, but whatever.

          • Magnus Eriksson

            Eeeeeh… I really dont care about the company Nintendo, I care about their products as long as they deserve the right to live. WiiU start too look as it doesnt deserve it. In this six months Nintendo were unable to bring ONE happy news. Basically everything with the console have been a major disappointment – and this is reflected everywhere. The console it self sold under half of what Nintendo thought it would – thought! not hoped for. They are failing everyone from customers to third parties. Why do you think the creators of Unreal Engine laughed at Nintendo? Why is their closest allied UbiSoft only into it halfheartedly? Nintendo even failed with Virtual Console although it would have cost them so little to make something good here. Had they released the full libraries of NES and SNES instead of pulling of this shit now they would win so much. It would have been a pleasant surprise and the right thing to do when it fails in every other aspect. Everyone would be THANK YOU Nintendo! instead of F*** YOU Nintendo! But Nintendo went for the other one that clearly shows they dont feel any kind of commitment and has no degree of selfcriticism in this – they are actually blaming their own customers for not “understanding the pad”. BS, people gets it, but hates it.

      • DragonSilths

        You remind me of a guy on MyNintendoNews who I dont get along with. Jellybean is his name. However while we will never agree I must insist that Nintendo doesnt have Money as its #1 goal. Making a fun and new way to play and making everyone have a good time and just simply putting smiles on peoples faces is their goal. Nintendo knows Money will come from that so they dont need to concern themselfs with being like Greedysoft where its only MONEY MONEY MONEY. When I create my Development Team in the future our Motto will be, “Creating games isnt about the money, its about turning your imagination into a reality, if your interest is money only then kindly gtfo.”

        • EponaVsCrimsonLoftwing

          Greedysoft office 7 years ago “Hey, I just came up with something better than printing money. Get this, we charge people to have online access on the system. They’ll be handing us money just to enable their internet connected device to be able to connect to the internet.”
          Boss- “My God…. That is the most evil, manipulative, cunning, bastardized idea I’ve ever heard. SOMEBODY GIVE THIS MAN A RAISE…F*ck it, I’ll do it myself, and here’s a promotion and high class hooker to go with it, today you became a real man.” lol

    • AAAkabob

      NO. my god, that second sentence is so wrong. It pains me to see people with such little understanding of economics.

      And this is a big deal.

      • DragonSilths

        Nintendo (Reggie) confirmed as long as 1 game is sold with a system they are making a profit. Dont you ever try to correct me when it comes to Nintendo. I am wrong once per generation when it comes to Nintendo. Other then that I am INCAPABLE OF BEING WRONG.

        • AAAkabob

          They do not take a 50 dollar loss and they definitely don’t get 60 dollars for every game you buy. There’s something called markups in stores.

  • Cerus98

    The statement of 100 billion yen was for the fiscal year ending March of NEXT YEAR. Stop posting this crap if you can’t get your facts straight.

    • http://about.me/overlordror Ashley King

      Reading comprehension, do you have it? I used the qualifer “as for the future” meaning, next year.

      • Cerus98

        I’m not the one who wrote/posted an article stating they won’t meet his personal goal for a future fiscal year that JUST started based on numbers from the LAST fiscal year. Just because someone else predicts it doesn’t mean you have to post it as news and factual based. Anyone with any sense will realize the fiscal year will encompass a major profit machine for Nintendo – AKA tons of new games, updates and improvements coming.

        Don’t get all pissy with me because you screwed up and wrote a confirmation article yesterday where nothing was confirmed.

        • http://about.me/overlordror Ashley King

          If you read carefully it’s the analysts stating that Iwata won’t meet his personal goal, not me. I report on the business side of Nintendo just as well as I report on the development side. They’re a publicly traded company so you’re never going to escape analyst articles.

      • ejownz6

        Where’s the Wii U update you said would be out yesterday?

        • http://about.me/overlordror Ashley King

          Ask Nintendo. They’re the ones removing images from their Facebook page.

        • Wayne Beck

          Please Observe the Nintendo Wii U Facebook and the Removal of the Graphic that was reported on.

      • Wayne Beck

        OOoooooo Burn. lol

  • Ducked

    I don’t care about what analyst says. I’m sure other people here will agree with me. All of the Wii and 3DS gloom and doom predictions they made, and how do they look now? They look like idiots, that’s what.

    • Guest

      They are not really predictions. They are sadly facts as everyone knows that Nintendo will not reach their goal of 100 billion yen. Sales for the Wii U should start to pick up into August but until then I’m afraid there will be more gloom and doom news.

      • Fred

        That’s garbage. There are facts like Nintendo posting a post for the last 2 fiscal years is a fact, but “everyone knows that Nintendo will not reach their goal of 100 billion yen.” is a guess NOT A FACT. It might turn out to be right and it might turn out to be wrong, but it’s not a fact! You don’t know if they’re going to do a price cut. You don’t know all the titles they’re going to release this year. You don’t know how everyone will react to them all. Keep your facts straight from your guesses!

        • EponaVsCrimsonLoftwing

          Well, it’s not necessarily a fact. Nothing can be a fact til it’s happened after all. Though, making those kind of numbers is a pretty bold claim. I love NIntendo, I love my Wii U, but it’s gonna take time for them to really get it moving

          • Fred

            Games sell systems and I’m excited for the many 1st and 2nd party games coming exclusively to the Wii U over the next year

      • D.M.T

        My advice to you is to grab a dictionary and look up the words ‘fact’ and ‘prediction’. Seems to me like you dont know the difference between a fact and a prediction.

      • Ducked

        Fact? You just made a prediction….

      • Alienfish

        I agree that there will always be gloom and doom news for Nintendo but that isn’t any reason to get all gloomy… and, um, doomy.

  • Timberwolf

    Dear Wiiudaily, Please stop posting patcher comments and Analyst comments as us readers don’t want doom and gloom we want facts not opinions and guesses about the stock market and shares. Also you are giving more power to patcher’s words by re-writing them.

    Best wishes

    • Michael

      This article has nothing to do with Patcher, you sound like a fool….

      And this isn’t doom and gloom, it isn’t opinions, it’s a fact. But if you read it all and use your brain you’ll see that it’s not really that big of a deal.

      • WhackaBump

        If you’re an active visitor to the site, you’ll see they often have articles that have comments from Patcher. He wasn’t referring to it being on this article, he was just saying that the Wii U Daily site should just stop posting this, Patcher, and similar articles in general.

    • Magnus Eriksson

      Yeah, we want to live like North Korea where criticism is prohibited and severly punishable. Nintendo, our dear leaders, must not be talked bad about.

      • http://www.facebook.com/john.pope.18007218 John Pope

        Lol every time i see iwata now im gonna be thinking about kim jong very ill

  • NintendoNoob

    Screw analysts, after E3 1,000,000 Wii Us will be sold every week and Nintendo will make a massive profit. It’s amazing how many people criticize the Wii U even though it has done better than 360 and Ps3 have done in their first 7 months

    • http://www.facebook.com/AJ.Fowl Andrew Chambers

      Well, that’s kind of a high prediction.

  • Magnus Eriksson

    So sad that the Wii U is failing. But its all Nintendos fault. They dropped the ball to many times. But they had good time to prepare with a good load of games at the launch, instead they rushed something half finished current gen technology out with nothing to support it. This is probably Nintendos last console generation. In the future they will make handhelds and games for mobile phones.

    • Michael

      It’s not failing, it’s very rare for a console to start out well. They almost all start out shaky. E3 will be the moment when the crack in the dam breaks open and we will see a flood of Wii U success. Maybe it won’t be as tremendous as the Wii was, but it will be awesome nonetheless.

      Nintendo could hypothetically tank several home consoles before going out of the console business, so what you say makes you look dumb.

      • Magnus Eriksson

        This is what EVERY analyst on the field says. I think I will listen to their opinion rather than some fanboy on WiiUDaily. :)

        • http://www.facebook.com/AJ.Fowl Andrew Chambers

          No, I have not seen one analyst say that Nintendo is actually tanked and that they will stop making hardware. Come on, just give me ONE link, I dare you.

          And if you look at sales, the Wii U launch was more sucessfull then the 360 and PS3, and they didn’t fail. The truth is that Sony has been having harder times then Nintendo these past few years, and their not going anywhere, so why would Nintendo?

          Oh,while you’re at it, how about you show me one console launch that wasn’t slow.

          Good Luck.

          • Fred

            Wii launch wasn’t slow.
            Don’t get me wrong i love my Wii U and I think it’ll be successful, but when I saw you ask for one console that didn’t launch slow I had to jump in

          • http://www.facebook.com/AJ.Fowl Andrew Chambers

            Okay, I will admit defeat on that one. But honestly the Wii barely counts. I loved the Wii, but most people that bought it are the ones that want the new trendy tech that disown it 4 months later.

          • Fred

            I keep hearing that, but everyone that I know that owns a wii still plays it

          • http://www.facebook.com/AJ.Fowl Andrew Chambers

            That’s because everyone you know actually understands the Wii. I’m guessing they own many of the good games that “hardcore gamers” didn’t know existed.

        • Fred

          the analysts also thought the 3DS was failing early on, but it’s tearing it up. The analysts thought the Vita was going to tear it up, but it’s struggling

    • fireheartis1

      Wrong bro even if Nintendo Wii U does end up in 3rd Nintendo has enough money left over to try again. What you people don’t understand is a failed launch means nothing really. Look at PS3 the launch failed miserably, but look at it now the sales of the PS3 have gone way up. This has helped Sony even though they have lost 3 billion dollars. Nintendo isn’t in the same financial trouble Sony is in, and will be able to correct things down the line. I do agree with your point Nintendo failed with the launch of the Wii U. It could have been much better. It wouldn’t have been as strong as the Wii’s launch but it could have been better than this. Nintendo may stay with Handheld gaming if the fail in the 9th gen, but the 8th gen is barely starting, so no one can say if the Wii U will fail or not. It’s all fuzzy logic at this point no one can predict the future bro. The only sad thing is Mr. Iwata will resign if they don’t make 100 billion yen, and to most true Nintendo fans that’s going to be a sad day.

      • Magnus Eriksson

        It is PLAUSIBLE although not very likely. Iwata have shown some degree of incompetence this far, and the console IS rushed out. Othewise it would have more games AND MORE USERS.

    • Nintedward

      You could not be more Wrong.

    • Fred

      Wrong this is not their last console. Even if it fails (which I don’t think it will) look at their last failure the Virtual Boy. They didn’t stop making hardware of any kind when it failed they just kept on going. So if it does fail (again I doubt it will) Nintendo will reload and try again. You forget they make incredible games and people want their games and you can’t get their games on PS4 or Xbox

      • http://www.facebook.com/AJ.Fowl Andrew Chambers

        Some people just don’t get that unlike companies like Sony, Nintendo can actually afford a loss. They have so much in assets that it would take years of losses to make then stop making consoles.

        • Fred

          Nevermind the fact that they MADE $70 million in PROFIT this fiscal year!!!

    • Aiddon

      uh, EVERY console launch of roughly the past 15-20 years has been like this. People said the same thing about the DS. It’s now the highest-selling system of all time. People predicted doom for the Wii and it beat the crap out of the 360 and PS3 so bad MS and Sony were HUMILIATED. And then the 3DS was supposed to be the end only for critics to shut their mouths once heavy-hitters like Mario 3D Land, Mario Kart 7, and Ocarina of Time 3D hit the market. Nintendo has a habit of shutting idiots up.

      • AJ Chioino

        and yet here we go again…. the ponyboys and xbox cult are saying nintendo is doomed again lol. the next 2 years of nintendo and the wii u look like they are going to be awesome. the wii u with not as powerful specs as the next two… and since they argue that the wii is 6th gen and the wii u is current gen, how does it feel that a 6th gen console smashed the 7th gen in sales? damn id be embarrassed if i was them with my tongue so far up sony and MS’s ass.

  • ejownz6

    There just isn’t any reason to buy a Wii U unless you’re a diehard Nintendo fan. Today I saw a deal for the Playstation 3 for $279.99 with six God of War games. Why would anyone pass that deal up and buy a Wii U with Nintendo Land for $80 more? Also the PS3 has a larger online community, larger game catalog, trophies, and comparable graphics.

    I’m a Nintendo fan and have a Wii U but I’m not surprised people avoid the console. Nintendo only offers their first party exclusives as a selling point while Sony and Microsoft are always looking for great third party exclusives, dlc priority, media center capabilities, etc.

    And right now Nintendo does not have much first party content available. Super Mario Bros U and Nintendo Land isn’t enough to sell consoles. Lego City is a niche game, Monster Hunter is a port, Resident Evil will be another port.

    Get some quality exclusives and first party games. Then consoles will sell, but even then people may be hesitant. Nintendo has a long track record of offering the poorest third party software and having the least features of the three big console companies.

    • http://www.facebook.com/john.pope.18007218 John Pope

      GTFO microsoftcock gaystation fanboy

  • http://people.ign.com/returnofthetruth2 ReturnoftheTruth2

    I guess people can stop talking about Nintendo’s money as a positive.

  • https://twitter.com/Zorpix_Fang Zorpix

    If they bundle smash bros with the Wii U after E3, they will have no financial trouble for quite a while

    • D.M.T

      Smash Bros. has never been bundled with a Nintendo console and should never be bundled with one. People will buy Smash Bros. regardless.

      • Magnus Eriksson

        People would by the console, and that is what Nintendo needs.

        • D.M.T

          If they want Smash Bros. then they will buy a Wii U no matter what, bundled or not

      • https://twitter.com/Zorpix_Fang Zorpix

        no no. not as a pack in. I mean as a bundle. Like they did with zombiU

        • D.M.T

          I know what you mean and I disagree. The game should be sold separately.

          • https://twitter.com/Zorpix_Fang Zorpix

            but they need to move units. People will be more willing to buy it bundled.

  • DemonRoach

    I already told you guys that they locked in their loss 3 months ago. This is ONLY news to Nintendo.

  • HHJHGGJHG

    PEEPEE!~! ;)

  • RonnieMexico

    after readin dis article I threw mi wii u outta mi 3rd story balcony…diz sukz

  • Aiddon

    I guess those analysts are going to be red in the face once the Nintendo Comeback hits again.

  • Andrew Longo

    analysts don’t have the ability to trust and i bet they said the exact same thing about the first wii. when nintendo wants sales to skyrocket, it happens. they know that e3 is going to be their highpoint, and so do the fans. i wouldn’t worry at all

  • EponaVsCrimsonLoftwing

    They predicted 9 million sales this year, and I could see 7, but 9 is gonna be tough to reach. They gotta start pumping out a number of BIG titles, and I don’t mean just Mario and Mario Kart. That Zelda is a remake so it doesn’t count, only real loyalists of that game are gonna pick it up or some people who missed it, but not being “new” it’s not gonna be what Twilight Princess was for the Wii (It’ll still probably get a good 2+ mil in sales though). They need their Wii Fit game out, they need their Wii Sports game, they need a Nintendo Land Expansion and they need to market the hell out of them, and better than their crappy launch commercials. That’ll get the name out. Then have other titles. We got Yoshi and Mario coming, but it needs something else outside the Mario Universe. Yeah, Xenoblade 2 for the fans of that, but that’s not a big enough franchise just yet. Any of Pokemon, Metroid, Star Fox, F-Zero, Animal Crossing, Donkey Kong, these will get attention. Get a few more big third party exclusives. Zombi U 2, get Kingdom Hearts 3 on the system, or draw up some other game from a big company, and if it’s exclusive all the more power to em. Show that you have western developer support. Get something from EA, it doesn’t matter what, but get something from them, cause they’re still big, despite having hate. Even if it’s not coming out til next summer, start marketing Smash Bros as “coming soon” this winter or even fall. There will be people who will pick up a system just knowing that Smash Bros will be out in the “foreseeable future”. And for some of the hardcore fans, get the other Operation Rainfall games (TLS and PT) sequels or spiritual successors and market them, cause, other than PT, they did decently without any real marketing, and building up that kind of good pr will get you even more support from your already hardcore fans and spread word of mouth that you care about your customers and get more hardcore gamers to be hardcore Nintendo gamers. And since those are already smaller titles they can afford to take more risks with the hardware and may be able to show off just what the Wii U can do and show it off well. Also, show some of the indie titles that are being brought to the platform. Flaunt them and give them some help marketing. Shovel Knight is a great example of a game that you have to show off. Use that. You can’t be nice guy Iwata, Nintendo, you gotta show up at E3 and make an entrance. You gotta keep all eyes on you. Nintendo doesn’t show up to the party, Nintendo is the party, and everyone knows it. That’s what Nintendo needs to do. Rant over. Nintendo, please take my advice, you’re my dream job and I want you to be thriving when I get there

  • fireheartis1

    Mr. Iwata came from Nintendo as a game developer you dork. So if he goes back from where he came it will still be as a Nintendo game developer. Sorry bro but I believe Iwata has brought a lot to the gaming world by creating the Wii and Wii U. It’s idiots like you who need to go back from which you came. Nintendo loosing Iwata will be a bad thing in the long run bro.

  • DragonSilths

    Whether people realize it or not, if Iwata resigns then Nintendo dies. He is the critical pillar that holds up Nintendo. He is a man so he makes mistakes. But the amount of passion he has Nintendo is unmatched. He cares so much about Nintendo and its fans that he tries as much as he can. He will mess up every once in awhile. Thats just normal. But Iwata is Nintendos heart. Take him out and Nintendo dies.

  • Nintedward

    You better be kidding you jackass.

    If you have cloned my Identity on a Wiiu , then congratulations. You’re a sad prick , I don’t care and All the people I have already added already know I’m the one and only , Nintedward.

  • http://www.facebook.com/john.pope.18007218 John Pope

    Calling someone a jackass ans sad prick meens you do care you childish moron.grow up

  • Nintedward

    Stfu. I’m sorry but if someone has copied my name and Made a Nintendo network ID on Wiiu called ”Nintedward” then they are officialy a JACKASS.

  • http://www.facebook.com/john.pope.18007218 John Pope

    So you dont care huh lmfao