Nintendo concedes Wii & DS sales decline – cites strong yen & iPhone

July 31, 2009

Nintendo concedes Wii & DS sales decline - cites strong yen & iPhoneNintendo has had a fantastic generation this time around, being gifted with having two consoles on the market with mass mainstream appeal. Both the Wii and Nintendo DS have sold in colossal numbers at startling rates. A sales decline has looked inevitable for the last few months, and so it has come to pass. Nintendo has even admitted as much.

Nintendo has absolutely dominated for the past two years by combination of having the Wii and DS on the market at the same time. The DS is a fantastic handheld console that appeals to all ages and all skill levels. I cannot be as generous in my description of the Wii but it too appeals to a huge number of people, most of whom are casual gamers only interested in short-term fun. And there’s nothing wrong with that.

Nintendo has been on a roll ever since the Wii was released, with strong month after strong month in all territories. However, at the beginning of this year there were signs that demand was starting to drop, especially for the Wii. It’s not like sales crashed or anything but there were subtle hints that the month after month of huge sales could be at an end.

Nintendo has now conceded as much. In its latest earnings report, Nintendo posts a 66 percent fall in operating profit. The reason behind this is cited as “slowing demand for its Wii console and a stronger yen.” The strong yen really can’t be helped but the 57 percent drop in sales of the Wii must be a big worry for executives at the company. Although, Nintendo still intends to sell another 26 million Wii consoles by the end of the year.

It’s also planning on selling another 30 million units of the Nintendo DS and DSi. But Nintendo admits that even the handheld market leader now faces tough competition. However, it isn’t from the Sony PSP as you might imagine, but from the Apple iPhone. The earnings report talks about falling DS sales and cites “increased competition in the handheld business from Apple’s iPhone.” A mere smartphone harming the DS? Who’d have thought.

Of course, I’m not for a minute claiming that the Nintendo showboat is over. It isn’t, and those confident sales predictions suggest Nintendo doesn’t think so either. But sales are declining from the heady heights they reached last year centered around the release of Wii Fit, every fat woman’s dream video game/lifestyle device. Will they bounce back? I personally doubt it because surely everyone who wants a Wii already has one. Surely!



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49 Responses to “Nintendo concedes Wii & DS sales decline – cites strong yen & iPhone”

  1. me_:

    “ Although, Nintendo still intends to sell another 26 million Wii consoles by the end of the year.”

    More than the entire PS3 install base. It kind of puts things in perspective.

  2. Rimmer:

    seeing as they haven’t even touched their potential arsenal of sales boosting tricks such as bundling, price drops, colour variations and other customisations etc, unlike MS and Sony, I’d say that they still have a very strong hand.

  3. Roca.:

    i think it is because most ppl already have a wii

  4. Roca.:

    its Friday, we can all put the word BLOCKBUSTER all over the place.

    just dont use it on any PS3 game because Kev is going to flip.

    “Too Human = Blockbuster”

  5. Barnabe Jones:

    Fat Princess is a BLOCKBUSTER!!!

    I really liked it. The only bad thing is that the matches can run long. The game is best with less players. With the full 32 players (or what ever the number is) it’s a bit too hectic.

    Roca – we serously kicked butt those last few matches. If we get a group again, we should all play on the same team next time.

  6. Roca.:

    im supprise with all the content for Fat Princess.

    -up to 32-player matches.
    -6 or 7 maps
    -4 different modes (capture the flag, search and retrive, team deathmatch, and domination)
    -6 different classes (11 in total w/upgrades)
    —normal (warrior, Priest, Worker, Monk, Black Mage, archer)
    —upgrade (Lancer, Dark Priest, Bomber, White Mage, Gunner)

  7. CAD:

    Oh who cares about the Wii. On to better news! So, the manufacturing cost of the PS3 has been reduced by 70%. When it launched it was selling for $800. Now it about $399/$499. 70% of $800 is $560. We know that is sold at a loss at launch and that is still sells at a loss today. So maybe the cost is about $600-$650 now. I’m going to say that a price cut won’t happen until next year at best.

  8. Akaro:

    “surely everyone who wants a Wii already has one.”

    That is up to the marketing team to work out. Rimmer put it quite clear. A price drop (among other tricks) could arise the interest of a few more customers.

    “A bargain is something you can’t use at a price you can’t resist.”
    - Franklin Jones

    A friend of mine is in love with Fat Princess (Chubby love). Told me that I should completely check it out this weekend at his place.

    Up to 32 people sounds like a good WOE at Ragnarok Online. I look up to it.

  9. Akaro:

    “Oh who cares about the Wii.”

    Oh, I do… *crickets chirping*.

    …Andrew?

  10. CAD:

    LOL

  11. Roca.:

    look at CAD making wild claims that comes from his HEAD….as usual.

    “70% of $800 is $560″

    so 50% of $800= $400 (i wonder how did I get a lower Price than CAD, if anything 70% should lower than $400) but key world is REDUCE by 70%

    but CAD is right 50% right:

    70% of $800 is in FACT $560, since the % was a reducing percentage…then u have to substract $560

    so ima take you to basic math
    $800-$560(70%)= $240

    you still expect price drop next year?

  12. CAD:

    Sorry I screwed up. Thanks for the correction.

  13. CAD:

    Ok well now that I’m corrected I guess a price drop is in order. I can’t believe I screwed that calculation. It’s because I’m here at work and I’m getting off early so I was rushing the post so I could get my work done. Any ways people enjoy the weekend I’m out as it’s a long weekend here in Toronto. It the annual Caribanna Parade and it draws Millions to the city every year. This weekend will be a blast.

  14. SW:

    ‘Oh, I do… *crickets chirping*.’

    Stay strong brother, I’m with you… *eyeballs well up* *sniffle*

    I care about the Wii, its just a shame nintendo doesn’t seem to give a fuck about me! :)

  15. Happyhockum:

    “Of course, I’m not for a minute claiming that the Nintendo showboat is over. It isn’t”

    Good to see you’re taking a much more realistic stance on the Wii now Dave.

    The Wii will get price cuts some time and demand will go up again, I’d bet approaching X-mas will be a busy time for them if they do – and I’d expect Xbox to see another drop at the years end too…..and maybe PS3 will drop by a small relatively token amount then too.

    I know quite a few people I’d not have tagged as being into gaming with a Wii.
    Self-styled ‘serious’ or ‘hard-core’ gamers might not get it but so what?
    As if Nintendo cares – or, so long as they keep pumping out versions of their classics, the ‘hardcore Ninty fans.

    I think it’s pretty clear that the Wii has already won this round of console wars.

    2nd place is locked up for the Xbox (although if they keep selling Xbox as well as they have done it will close the gap on the Wii which may be interesting to watch develop).

    The PS3 is clearly destined to stay 3rd (they’re not even bumping along on a flat sales trajectory their sales have dived badly in the last year, no matter how many optimistic projections Sony or their paid analysts make).

    The Wii has already proved its wide appeal, the only real interest left in the sales now is how much Xbox can close up (especially next year and when we get a look at what they do with Natal) and how poorly PS3 continues to do.

  16. Roca.:

    Happy and his long worthless statements

  17. Happyhockum:

    Oh boo hoo hoo Roca, the tears are running down my leg.

    Dry up fanboy.

  18. Roca.:

    “So the PS3 costs dropped from 50% earlier this year, bringing manufacturing expenses down to approximately $400. And now that costs have dropped to “roughly” 70% Sony is spending approximately $240 in producing PS3 units. Does this mean a $200 price-cut is on the way?

  19. Arvis:

    So how’d you guys like Fat Princess? I actually ended up playing with some friends irl until around 2:30am. But I’m definitely still into the idea of a Blorge Clan or whatever.

    I thought the game was really fun, and really addictive. Once you get going, you definitely get that “just one more game” syndrome. :D

    -Arvis

  20. Roca.:

    I really enjoy yesterday…I like how well all the maps were design.

    Barnabe Jones and I kicking some butt late at night.. we won like 6 matches in a row.

  21. Roca.:

    Demon’s Souls website now live

    h**p://www.demons-souls.com/home.html

  22. kevo:

    yeah we need to have a blorge clan but i just sent in my wireless router with the life time warranty it came with so im sorry to all the newly acquired friends from blorge to psn but i wont be on 4 a lil bit….hopefully ill be able to play st4 and fat princess etc. with u guys asap…thanx

  23. SW:

    Yeah it was fun.

    I just wish that the dark priest guys didn’t have such as easy time staying locked onto you while they drain your health.

    Loving the chicken bottle lol, I think i turned my own team into a chickens a couple of times… Can’t throw that bottle for the life of me :(

  24. lock_down:

    Is Fat Princess good?

    I’m still not over the unfair UK conversion though…

  25. Roca.:

    “Loving the chicken bottle lol, I think i turned my own team into a chickens a couple of times… Can’t throw that bottle for the life of me ”

    those where good times…I remember I was on ur team and I saw you coming with the magic bottle….so I follow to get some quick chicken kills, but you threw the bottle right at us…(there were like 8 of us) and all turn in chickens and started retreating to our base….GOOD TIMES.

  26. Arvis:

    I must have tried like ten times to use that bottle to make capturing the princess easier, but failed every time.

    SW, you came swooping in to kill me and my friends in one game. You made life very difficult for us. :D

    Let’s fight on the same team next time.

    -Arvis

  27. SW:

    I felt sorry for the AI that you fleshlings were ganging up on!

    I even got the princess out of your castle once! But I was killed pretty soon after that :(

    I really like the map we were playing on Arvis, seems like there are lots of ways the worker can help out as there seem to be many ladder, springboard and siege weapon spots.

  28. Roca.:

    Kev…

    take a look at this link…it might help you comprehend that PSN is not under SOE..

    SOE is a gaming Division PSN is a Network Service under SCE

  29. Ghost:

    So you guys think “Fat Princess” is worth downloading? I am assuming it’s free. I just watched the preview it made me laugh.

  30. Knighthawk:

    ^Ghost, no offence, but do you even read any of the post here? It’s about $15!

  31. Ghost:

    no offence taken KnightCock- 8=D~ I mean “Knighthawk” (lol) I just didn’t catch the very last sentence of the Fat-Princess post. And since everybody was talking about it on this nintendo post I thought I would ask. But since you ask yeah I do try and read the post here.

  32. Knighthawk:

    ^
    Very intelligent of you Ghost! The last time I was called KnightCock was by a 12 year old racist homophobe over Xbox Live! Good for you!

  33. Roca.:

    Ghost if you dont like the game, then dont buy it.

    you dont have to called names on ppl….. Knighthawk was just answering ur question…

    how childish of you to make a dick symbol.
    8=D~
    must be on ur mind all day long.

  34. Ghost:

    @Knighthawk
    calm down there dude I was just joking with you did not mean to piss you off. “no offence” right?
    @Roca
    I don’t know if I like the game or not, never played it (that was why I ask the above ?)
    And I wasn’t calling anybody names, And yeah he answered my ? by being a smart-ass, so I answered his ? by being one back. I’m sure he can take care of himself I doubt he needs Super-Roca to come to his rescue.

  35. Barnabe Jones:

    Fat Princess is great! I just discovered the “foot ball” (aka: Soccer) mode. :)

  36. Knighthawk:

    “@Knighthawk
    calm down there dude I was just joking with you did not mean to piss you off. “no offence” right?
    @Roca
    I don’t know if I like the game or not, never played it (that was why I ask the above ?)
    And I wasn’t calling anybody names, And yeah he answered my ? by being a smart-ass, so I answered his ? by being one back. I’m sure he can take care of himself I doubt he needs Super-Roca to come to his rescue.”

    @Ghost

    Dude I’m calm. Was just pointing out that your little joke was something akin to a 12 year old over Xbox Live. My reply was like 2 sentences, did not have any swearing and I did not call you any names. Your comment did not piss me off and I did not take offence to it. Yes you are correct, I don’t need anyone coming to my rescue. Especially when someone’s reply to me is at the level of grade school.

  37. Ghost:

    No your reply was just being a smart-ass, get over it.

  38. Andrew_DS:

    I care about the Wii.

    So its sales have declined. Thats no surprise for several reasons :

    - Bad time of year (summer is notorious for sales slump)

    - Global credit crunch (Affecting all console manufacturers)

    - Maybe Wii is nearing saturation point (You can only sell so man consoles to the masses, like Rimmer said, new colours, price drop etc… would open the market a bit)

    Its only news because the drop has been more than sony and Microsoft are suffering. But when you are so high up, you only have further to fall. Also so many people want the Wii to fail. Bit late for that but lets be honest, it will still sell more than Xbox and ps4th.

  39. Roca.:

    “Fat Princess is great! I just discovered the “foot ball” (aka: Soccer) mode”

    how can I get that?

  40. Barnabe Jones:

    Roca – start a game, then change the game mode to “queens rules”. It’s pretty simple, but fun.

  41. SW:

    I keep meaning to play for FP.

    But BF1943 has me kind hooked when using the PS3 :(

    And at the moment, I hate to say it, but I’m giving Mass Effect(PC) another go, and this time I’m kind of liking it…

    wahhhhhhhhhhhhhhhhhhhhhhhhhhhh….

  42. Arvis:

    SW,

    Bwaha! TOLD you that game rocks! ;)

    -Arvis

  43. SW:

    I must say tho, half of the classes are lame. I chose the infiltrator, and I am SOOOOO wishing I took the solider guy :(

    Stuck using my pistol….

  44. Arvis:

    You’ll be happier later. Soldier is boring.

    -Arvis

  45. Knighthawk:

    “No your reply was just being a smart-ass, get over it.”

    You asked a question that you SHOULD have easily had the answer to! I told you the answer, don’t see how I was being a smart ass! There was nothing to get over in the first place, so eat a good size piece of shit and die! lol

  46. Ghost:

    @Knighthawk:
    (lol)-Are you really legally retarded is that your problem? I guess I can cut you some slack being that U are hadicapped and all. What part of “get over it” do you not understand? Maybe they will make a “Handicap Blorge” where retards like you can go and make your handicap faces and nosies at each other?(lol)

  47. Knighthawk:

    ^
    Um yeah ok, I’m done!…..

  48. Roca.:

    Ghost you know u want to play FP…to bad it aint free yet

  49. Ghost:

    @Roca.:
    Lol-yeah to bad-Lol

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