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Nintendo gets first annual loss in 30 years

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GildedATM Since: Oct, 2011
#176: Oct 31st 2011 at 8:47:10 AM

One solution to lack of an analogue stick is to just use the shoulder buttons; in most games, vertical perspective isn't that necessary.

Unfortunately, that limits both game design (What if a designer wants to make a game that does rely on vertical perspective? Like Hawken.), makes FPS games clunky, and reduces the amount of buttons available.

Folt Warlock Necromancer from Hollow Bastion! >=D Since: Jun, 2010
Warlock Necromancer
#177: Oct 31st 2011 at 11:49:51 AM

http://www.destructoid.com/hands-on-with-the-nintendo-3ds-circle-pad-pro-214879.phtml

Someone on Destructoid got to try out the Circle Pad Pro. Reactions to it were mixed, but not anything close to "Nubaggedon" that most seems to believe it is.

http://www.joystiq.com/2011/10/31/a-circle-pad-revelation-for-resident-evil-revelations/

Here's one from Joystiq. Also a lot more positive in tone than I had expected.

http://www.modojo.com/features/nintendo_five_steps_to_weather_playstation_vitas_storm/

Here's an article that talks about upcoming things that can ensure that the 3DS will be able to compete with Vita. The article is by no means reliable however.

Here's a Q & A about the Fiscal Year briefing I mentioned and linked to a while back:

http://www.nintendo.co.jp/ir/en/library/events/111028qa/index.html

edited 31st Oct '11 12:25:39 PM by Folt

Fantastic Supreme Überkaiser Emperor Folt of The Infinity and Beyond" ... "The First"!
locotony Since: Feb, 2011
Meophist from Toronto, Canada Since: May, 2010
#179: Oct 31st 2011 at 2:13:43 PM

[up] Unlike Sony and Microsoft, Nintendo's only market is video games, so if they aren't doing as well they can afford to lose a little more than Nintendo can.
While it is true that both Microsoft and Sony have diversified markets beyond video games that also means that they have a smaller stake in the market. Both companies have lost a lot of money in the market and so I think they'll likely aim towards profitability so that each of their sectors will cease being a burden on their companies. They both entered the market hoping to control the living room, which was considered to be the next big market, but after the recent success of mobile devices, it may seem that targeting that market may have been a better use of the given resources. Due to this, I think there'll be an increased focus on the mobile market while focusing the game market to be self-sustaining rather than focusing on growth.

On the subject of mobile devices though, I think this is an interesting graph.

edited 31st Oct '11 2:21:19 PM by Meophist

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locotony Since: Feb, 2011
#180: Oct 31st 2011 at 2:39:33 PM

[up] wow people still like their handheld's even when people say mobiles are taking over the market.

Meophist from Toronto, Canada Since: May, 2010
#181: Oct 31st 2011 at 2:45:16 PM

It's from Nintendo's Semi-Annual Financial Results Briefing Q&A. It also shows that there's more planned purchases of games on dedicated handhelds, although I suppose most smart phone game purchases aren't quite as planned.

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Recon5 Avvie-free for life! from Southeast Asia Since: Jan, 2001
Avvie-free for life!
#182: Oct 31st 2011 at 5:20:00 PM

Interestingly, isn't it about time for a 3DS version of the GBA SP or DS Lite?

edited 31st Oct '11 5:20:20 PM by Recon5

MrW from some place Since: Sep, 2010
#183: Oct 31st 2011 at 5:37:18 PM

[up]Probably, though I'm not sure if the system could get any smaller, it already makes the Lite look like the original DS.

Meophist from Toronto, Canada Since: May, 2010
#184: Oct 31st 2011 at 5:40:14 PM

We might get an XL-styled revision, but I don't think it can become much smaller anytime soon.

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INUH Since: Jul, 2009
#185: Oct 31st 2011 at 6:32:08 PM

[up][up][up]Nah, if they follow that pattern it would be released in late 2012-early 2013.

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Jergling The Darkest Timeline Since: Apr, 2011
The Darkest Timeline
#186: Nov 1st 2011 at 2:50:20 PM

All 3DS games are 2D capable, right? Nintendo could use smaller, lower-speed chips and the same screen size to make a 3DS-Lite that only runs 2D and goes for $170.

It seems too soon though, they'll probably want to hang onto the recent price drop wave for a few more months, they didn't have the same situation with the DS. They still need *games*. Skeptical DS owners are looking for something totally new to convince them, smartphone owners are looking for a game deep enough to make them carry around another plastic box, and first-time handheld buyers are looking for something cheap and friendly. They aren't there yet, but they're working on it.

Here's something I don't understand: Why was dropping the price to $170 so crazy for Nintendo? The manufacturing cost of the 3DS should be down below $100 by now, since it started at about $110. They're still making nearly a 70% profit margin.

Kostya (Unlucky Thirteen)
#187: Nov 1st 2011 at 2:54:46 PM

[up] Nope. It's been confirmed that Nintendo is now taking a loss for each system sold. That's a big thing for them and is part of the reason they're getting frantic.

edit: Manufacturing cost, yes. However you're not taking into account the shipment of models overseas, any possible modifications that have to be made to parts, etc. I could see it costing more close to $200.

edited 1st Nov '11 2:55:44 PM by Kostya

Jergling The Darkest Timeline Since: Apr, 2011
The Darkest Timeline
#188: Nov 1st 2011 at 3:03:46 PM

Ok, so the DS was produced at $75/unit, and sold originally at $150. It was sold at a profit, thus distribution costs for handheld electronics produced in Japan and sold in the US should not exceed $75. If the 3DS is being sold at a loss, it's a loss so minor that it should be made up for by the licensing profit on a single game.

This assumes that distribution cost does not depend on the power of the system, which is reasonable, considering the PSP saw a similar split of $80.

Swampertrox Since: Oct, 2010
#189: Nov 1st 2011 at 3:55:37 PM

[up] Well, that's why they cut prices: hoping that they would make enough on software to make up for the loss.

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