Home ArchiveNintendo May Be Down $450 Million, But They Aren’t Out Yet

Nintendo May Be Down $450 Million, But They Aren’t Out Yet

by GH Staff
Nintendo may be at a considerable financial loss, but the company isn't dead yet.

While every side of the gaming community has its elitist fan-group that believes they are the superior class (“X-Bros” and the “followers of the almighty Gaben” to name a few), it seems like everyone gets a kick out of bashing Nintendo. Yes, that Nintendo…one of the first companies to bring video games to the masses, and one of the most influencial hardware developers of our time. Some would say Nintendo has gone “casual” as of late, with their focus being on family gaming activities, and systems that promote health and wellness. While the Wii U is a powerful, innovative console, several high-profile developers have cancelled projects for the next-gen console; some have even outright refused to develop games for the Wii U, despite the console’s ability to promote new interface ideas.

Earlier this week, it was revealed that Nintendo suffered an operating loss of $456 million for their 2013-2014 fiscal year (ended on March 31). This past January, Nintendo originally predicted their losses to be $335 million. While the Nintendo 3DS continues to sell, the Wii U’s market presence has had a “negative impact” on Nintendo’s overall profits. Since the launch of the Wii U back in November 2012, the system has sold 6.17 million units worldwide. The 3D-less Nintendo 2DS launched in October 2013, but worldwide sales were recorded at $2.2 million.

Nintendo’s projections for the 2014-2015 fiscal year are optimistic, though within conservative means. The Japanese gaming company projects $390 million in operating income, a normal income of $343 million, and net sales to be $5.8 billion.

That $456 million figure puts quite a financial dent in Nintendo, but elitists should begin sharpening their pitchforks just yet. Despite last year’s financial struggles, the 2014-2015 fiscal year is a pretty huge one for the Japanese gaming giant.

Nintendo has an impressive software lineup planned for the Wii U and 3DS this year. What is sure to be the most-anticipated Nintendo title in recent history, Super Smash Bros. Wii U and Super Smash Bros. 3DS have both been confirmed to release this year, in Summer and Winter respectively. While the title ropes in familiar Nintendo mascots for an all-out brawl, Super Smash Bros. Brawl brought 3rd-party characters into the mix, with Sonic the Hedgehog and Solid Snake. The complete roster for Smash Bros. Wii U/3DS has yet to be revealed in its entirety, but already we have another 3rd-party character jumping into the frenzy; Mega Man will be a playable character in both versions of the title. What’s interesting about the Smash Bros. series is that it appeals to almost everyone, despite its origins as a Nintendo-property-only crossover game. As much as we hear people belittling the Wii U, and proclaiming how the 3DS is just a gimmick with a short fuse, consumers will buy the Wii U and Nintendo 3DS during the launch of both versions. We’ve seen it happen with Super Smash Bros. Melee and the GameCube, and we watched it happen again with Super Smash Bros. Brawl and the Wii…both generations of Smash Bros. combined cannot match the current anticipation of the next installment.

Both Nintendo haters and fans alike will agree that the gaming company very often plays the “nostalgia card” with their games. Where Microsoft only possess a few mascots- Master Chief and the Gears of War crew, Sony and Nintendo both have a plethora of recognizable characters to draw from; Spyro, Crash Bandicoot, Sly Cooper, Mario, Link, Samus Aran…this is an endless list. What Microsoft also lacks, is that essence of nostalgia that the other two companies have. Several memorable characters have come from the Xbox vide game archive, but how many of them were there during our childhood? Of course, I don’t speak for the entire gaming community, but according to a report from the ESA, the average age for gamers is 31…old enough to have remembered the NES, Genesis, Saturn, PlayStation, SNES, Nintendo 64, GameCube and the PS2.

…Man, we had a great childhood, didn’t we.

Sony fails to draw from the nostalgia pool, but Nintendo on the other hand just relishes in it. While Nintendo has produced new IPs over the years, we see more games featuring characters that are well over 20 years old. How many Mario titles have been released in the past 5 years? How many Legend of Zelda titles are available for purchase on the Wii U and 3DS, including the Virtual Console and eShop? There’s a new Pokemon title almost every year- would you believe that the Pokemon franchise will have its 20th anniversary in 2016? It’s often said that Nintendo oversaturates their own library with games that feed off of nostalgia and the lost child-like wonder of older gamers…but we keep buying them. Every time a Mario title comes out, we buy it. Zelda? Day-one purchase. Metroid? Pre-ordered. As ridiculous as it may seem, Nintendo’s method of endlessly milking past franchises is clearly working.

By the way, as I’m closing out that thought on nostalgic video games, have you seen the excitement online regarding the remakes of Pokemon Ruby/Sapphire?

An ace is an ace, regardless of what suite it holds. Apart from 2014’s Super Smash Bros. games, Nintendo has another high-profile title coming to one of its systems- Bayonetta 2. While the original may not have been released on a Nintendo platform, Bayonetta received a perfect 10/10 from GamesRadar, and is one of very few games to recieve the coveted 40/40 from Famistu. While it released the same year as Platinum titles MadWorld (Wii) and Infinite Space (Nintendo DS), some would say that Bayonetta was the title that made Platinum Games a household-name developer. Devoted fans of the original have been clammering for a follow-up; as Bayonetta 2 is a Wii U exclusive, there’s really only one way fans can play it…It may not be on the same level of “system sellers” as Smash Bros, but you can expect sales of the Wii U to be on the rise at launch.

Earlier this year, it was announced that Retro Studios was currently developing another game. Donkey Kong Country: Tropical Freeze was the first 1080p, HD title from the studio. Internal enthusiasm towards developing HD games suggests that the studio responsible for the iconic Metroid Prime trilogy may be working on yet another Wii U game. Nintendo has trusted Retro Studios with classic franchises in the past; perhaps fans may see another reboot of a classic series.

One thing is certain; Nintendo fans have waited too long for a new F-Zero, or better yet, a brand new StarFox.

While all of these predictions are optimistic, Nintendo still needs to do more if they wish to retain their overall presence among the “Big 3″. While Nintendo Direct is a more…”direct” way of introducing fans to new content, it alienates gamers who may not own a Nintendo console/handheld, along with those who rarely check Nintendo’s website. Perhaps it’s due to financial issues, but Nintendo really needs to bring their announcements back into the spotlight at E3. A booth is great; it allows fans, investors, and media representatives to try new software in a controlled environment. The main problem with this, is that the experience is closed off to the lucky and the privelaged…The E3 stage is where announcements need to be made. This is where your real publicity generates from. Nintendo can show several thousand people their upcoming software lineup at a closed booth…but on the E3 stage, they could show millions.

The recent years have left Nintendo with a bleeding gash that may not heal until further notice, but the gaming giant shouldn’t be left for dead just yet. An impressive software list is just waiting to be released over the course of this year. With E3 now less than a month away, we’re bound to see even more new titles emerge for this year and 2015.

Is Nintendo struggling? Without a doubt, yes…but they aren’t out of the race just yet.