Nintendo admits Wii downturn but still posts record profits
Nintendo has admitted there is a problem with the Wii in Japan – it isn’t selling in the numbers it once was in the country Nintendo was founded. But while it is undoubtedly a problem, Nintendo is unlikely to be too worried as it expects to rake in record annual profits for the year ending March 31.
It was revealed a few days ago that the Wii had taken a bit of a pasting in its native Japan during the month of March. While the PS3 forged onwards and upwards, the Wii started to show signs its dominance was coming to an end at last. The Xbox 360 is doing what it usually does in Japan – surviving.
When we look back at this generation in years to come, the success of the Wii will seem bizarre in light of the competition it was facing. The PS3 and the Xbox 360 are powerful, state-of-the-art games consoles providing top-notch graphics and intoxicating gameplay. The Wii is not. Despite these odds it has sold in unbelievable numbers and truly managed to become a mainstream phenomenon.
There have been signs of late that the story may be coming to an end. No doubt the Wii will continue to sell for a few more years to come but the more demand than supply era looks to have ended for good. This is happening in every territory but especially in Japan, Nintendo’s spiritual home and a market regarded as being a forerunner to what will happen elsewhere.
Nintendo President Satoru Iwata has admitted things aren’t looking too good at present. According to Reuters, he told reporters at a recent meeting:
Wii (demand) is not vigorous at the moment in Japan. In fact, it is in the most unhealthy situation since its launch in Japan.
If our products are not much different from competitors’, price cuts would generate significant fresh demand. But video games are just not that kind of product.
So there won’t be a price cut forthcoming despite Nintendo’s obvious acknowledgment that the demand for the Wii has slowed considerably in Japan. However, it’s not as though Nintendo couldn’t afford to provide consumer with a bit of a price cut in these troubled economic times.
The company is expected to announce record profits of 530 billion yen ($5.2 billion) for the year ending March 31. This is at a time when other Japanese companies such as Sony and Toyota are posting losses thanks to the worldwide recession and a strong yen.
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9 Responses to “Nintendo admits Wii downturn but still posts record profits”
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April 10th, 2009
Dave, I know you want to throw the PS3 support here a bone or two on this but 2 occasions (which were all about a new game release) does not signal “the Wii started to show signs its dominance was coming to an end at last.”
I expect when the effect wears off this month or next and the numbers show the Wii slaughtering the PS3 as usual you’ll adjust your tack?
I’ll believe it when I see it.
April 10th, 2009
HH, Do not forget FF XIII is a PS3 exclusive due for the end of ‘09. Nintendo and Sony may go back and forth a bit… but I believe that the lack of quality software and Nintendo’s arrogance and complete disregard for it’s customer will be the Wii’s undoing.
I can only hope Nintendo goes under and folds as a company, than gaming will be safe again.
April 10th, 2009
do not forget that Wii sports resort & motion+ will be out in july. the hype will be there. again. also nintendo solved the storage problem and produced titles like mario, zelda, metroid, and punch out for core players & many more for casual players. i don’t think they are disregarding their consumers. game development is cheaper and easier too. 3rd party devs are the one to blame for the lack of hardcore titles.
April 11th, 2009
The sky is falling!!!!
But c’mon. Fire out a new Zelda, add in some motion plus goodness & a sequal to WiiSports (or something), the hype will be all back and they’ll be flying off the shelves again.
The SD solution for wiiware isn’t supposed to be all that good for you wii (it uses the nand alot), but meh, watever. At least they shut up the guys at IGN who would alsywa whine about lack of space…
April 11th, 2009
Is all downhill from now on…
April 11th, 2009
They have Wii Sports II and Punch Out for the whole year… the new Zelda is a DS Game. Under normal circumstances I would say there screwed… but the Wii hype machine is a force to be reckon with, but with FF XIII being a PS3 exclusive in Japan, I honestly think it could go either way at this point.
April 13th, 2009
“I can only hope Nintendo goes under and folds as a company, than gaming will be safe again.”
I’d like to see them go software-only like Sega, myself. Sega’s consoles were lame, but has anyone seen the amount of software awesomeness Sega is putting out this year?
Nintendo makes lame consoles, but their franchises still rock.
-Arvis
April 13th, 2009
I always thought Sega games were too arcadey myself (daytona, VF series etc.)
Some of thier stuff is decent I suppose, oh & F-Zero GX was awesome.
IF Nintendo would only stop being so damn stubborn and give gamers what we want instead of what average joe consumer wants they could be so damn good…
I guess Joe Schmoe has the money tho (rhyme STYLIN’).
April 14th, 2009
Well, as an example, last week I downloaded the trailers for Virtua Tennis 2009, Alpha Protocol, and the demo for Sonic’s Ultimate Genesis Collection. Not only that, but next week I’ll be getting DLC for the brilliant Valkyria Chronicles.
Guess who makes all of those games? =D
I’m telling you, Sega is on a roll this year.
-Arvis