Iwata: Nintendo "proved" handheld naysayers were wrong

By Wesley Yin-Poole Published 27 January, 2012

3DS fastest-selling console ever in Japan.

The uplift in sales of the 3DS have proved those who claimed handhelds were doomed wrong, Nintendo boss Satoru Iwata has said.

Many expected the Nintendo 3DS to struggle as a result of the emergence of smartphones as gaming devices - particularly with the enormous popularity of iOS and Android gaming.

Iwata's famous 2011 GDC speech was taken by many to be an attack on app gaming - and caused game industry members to question the Japanese company's strategy.

While the 3DS did struggle at first - particularly in the US and Europe, it has since rallied and is now selling well. This, Iwata said, answered the critics.

"Last summer, when the sales pace of the Nintendo 3DS was slow, there were extreme remarks saying, 'With the penetration of smartphones, will there still be a market for handheld hardware?,' which was almost equal to 'Handheld hardware is not necessary anymore,'" he said in an investor briefing overnight.

"I believe we proved that such opinions are incorrect."

Sales of the 3DS picked up over Christmas, fuelled by the high-profile price cut, the launch of Mario Kart 7 and Super Mario 3D Land, and in Japan Monster Hunter 3G.

In Japan, at the end of last year total unit sales of the Nintendo 3DS reached four million faster than the Nintendo DS or the Wii. Iwata confirmed this morning that the 3DS did not lose its momentum even after the new year, and two weeks ago overtook the Game Boy Advance to record the fastest sales pace in Japan.

Iwata qualified the 3DS' success by saying Nintendo was unable to reach the sales goal it set in October 2011, which is one of the reasons it revised its financial forecasts - the company expects to make a huge loss for the 2012 financial year.

"Because the start of the year-end sales season was slower both in the US and in Europe in comparison to the last few years, and because we could not cover the lack of sales even after the sales gained momentum, the total sales did not reach our forecast," Iwata explained.

"Considering that, in the end, the momentum at the end of the year was almost as we had expected, we have to look back on the fact that we could not boost sales a little earlier. "

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About Wesley Yin-Poole

Wesley is Eurogamer's news editor. He likes news, interviews, and more news. He also likes Street Fighter more than anyone can get him to shut up about it.

Read more articles from Wesley by visiting the Wesley Yin-Poole archive page.

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Comments (54) Latest comment 4 weeks ago

  • SikoSoft #1 4 weeks ago

    And yet Nintendo still reported an annual loss.

    hmmm...

  • ring_piece #2 4 weeks ago

    It's true, they did prove them wrong, but it didn't help a great deal to launch and for MONTHS have no must-have software for the 3DS.

    I think they've probably "learned their lesson", but that was some dumb execution on their part.

  • deded #3 4 weeks ago

    Ah, the power of Monster Hunter. Looks like one game has been responsible for saving two handhelds... can it make it three for three with Vita I wonder?

    ('course two Marios didn't hurt either I expect, but still...)
    Edited by 1 at 27/01/12 @ 08:58

  • Okamiwolf #4 4 weeks ago

    Sales may yet tank again once all the Nintendy fanboys have cleared through the system and bought one to get their one-off dose of pseudo-3D Mario. I don't see this system having long term legs. It's too underpowered when compared to Vita and next year's phones. It's basically a children's toy, and looks like one. We'll see if it can survive the inevitable Nintendo system game drought which hits within the next year or so.
    Edited by 1 at 27/01/12 @ 08:56

  • darkmorgado #5 4 weeks ago

    The 3ds is an amazing machine with some great games already so early in its life. I can't wait to see what the next few years bring, especially when developers start using the 3d to explore new gameplay opportunities.

  • darkmorgado #6 4 weeks ago

    @Okamiwolf

    Ah, that must explain why the vita is already being classed as a failure while the 3ds is selling so well then

  • bobfish09 #7 4 weeks ago

    Basically, Monster Hunter saved Nintendo's arse.

  • deded #8 4 weeks ago

    @darkmorgado Anyone who can class the Vita as a failure when it hasn't even launched in the two largest territories in the world would be a moron.

    EDIT: Moron comment not directed at you darkmorgado - apologies if you thought so. ;)
    Edited by 1 at 27/01/12 @ 09:38

  • Showmeyomoves #9 4 weeks ago

    @bobfish09 Yeah, I'm sure Nintendo's own Mario games had nothing to do with it...

  • slippysloppy #10 4 weeks ago

    Or they could have just released some better games at launch and there wouldn't have been as many naysayers.

  • jonno394 #11 4 weeks ago

    @bobfish09

    How can you say Monster Hunter has saved the console? It has sold 1 million or so copies in Japan. That means if MH wasn't released then the 3DS may have sold around 1 million less, a far cry from the other 10 million that have been sold worldwide this FY.....
    Edited by 2 at 27/01/12 @ 09:06

  • kirankara #12 4 weeks ago

    @deded whilst its true that PS vita hasn't launched in west, the psp was only really saved by sales in Japan. There's no guarantees that vita will fare better, whilst 3ds will almost guaranteed sell in all the territories. The ds outsold the more powerful psp and tbh had better array of games, most likely due to being to cheaper to develop for. This hasn't changed here either and can imagine trend continuing. I've no desire for vita.to fail, but idiots who can't see value in 3ds or its games, should just shut up. I like the vita and what it does, is just not suitable for what I want it for, so that's why I bought 3ds instead. Grow up and understand world isn't black and white. More powerful system doesn't equal better games machine.the original xbox was proof of this, blowing ps2 away technically, but in terms of games it was nowhere near as good.

  • Okamiwolf #13 4 weeks ago

    @darkmorgado Again, you're committing the same error that people did by saying the 3DS was extinct right after launch. Wait until Vita gets some big RPGs in Japan, and gets a twin stick Call of Duty in the rest of the world. I don't even plan on buying a Vita, but it's as foolish a mistake to write it off as it was for people to write off the 3DS so early. You need to think outside the box and try defying common wisdom. Common wisdom, which even Iwata has now fallen prey to when he should know better, is that the 3DS is now guaranteed incredible long term success and Vita is destined to flop. There's reason to challenge both of those assumptions. In two years people may not be so tolerant of the 3DS's shortcomings, especially if Nintendo cannot keep the hits coming now that they've shot their load with Mario Kart.

  • chasejamie #14 4 weeks ago

    @Okamiwolf

    One of it appeals is that it IS also a kids toy. If I had a young kid I wouldn't want him swanning about school with a Vita or 4S, a 3DS is probably the best option. In my day my backpack was mainly used for my colour screened Atari Lynx. Everyone else had a black and white Gameboy. It's not always about power.

  • CORIANA_SIX #15 4 weeks ago

    i think i'm gonna have to spend my bonus on a 3DS...too slow Vita!

    But i'll get you too...

  • HornsDino #16 4 weeks ago

    I don't think you can say it needed to Monster Hunter to save it at all. It wasn't released in the EU or US, and the 3DS is still selling like hotcakes there too (>1m copies of MK7 sold in the US for example)

  • NotSoSlim #17 4 weeks ago

    Wow another Vita vs 3ds pissing match. Until Vita launches in other territories it cannot be judged as its clearly a western geared system right now and sony still sell psp's over there so i doubt they are majorly worried.

    3ds is a great system but i will wait for hardware revision but just like writing off 3ds was a mistake so is calling Vita a flop

  • penhalion #18 4 weeks ago

    No Mr Iwata, All you proved was that they were 100% right because they all said they wouldn't buy the 3DS at the rediculous price it launched at.

  • roz123 #19 4 weeks ago

    Monster hunter selling just over 1 million copies has been good but when the console has sold 15 million units and that game is not available in Europe or the USA its complete bollocks to say its the reason the 3DS is "saved". It hasn't even sold as much as Mario Kart 7 or Super Mario 3D Land in Japan where it is most popular.

    Vita will do well when it gets software that attracts customers. COD, Uncharted and FIFA could certainly do that job in the west.

  • Sabreman64 #20 4 weeks ago

    Well, it didn't take long for Nintendo to become arrogant and complacent once again, did it? But the fact remains that Nintendo really screwed up the 3DS's launch and its first several months.

  • deded #21 4 weeks ago

    @kirankara
    I've no desire for vita.to fail, but idiots who can't see value in 3ds or its games, should just shut up. I like the vita and what it does, is just not suitable for what I want it for, so that's why I bought 3ds instead. Grow up and understand world isn't black and white.
    Go back, read what I said again - if you can read - and then tell me what the hell this reply had to do with what I said. Can you do that? Or do you need to grow up a little first?

    Sheesh, get your finger off the comment trigger fella.

  • Whitster #22 4 weeks ago

    @Okamiwolf Given how good Resi looks a year into the 3DS life span I wouldn't write it off power wise yet.

  • deded #23 4 weeks ago

    @roz123 If those numbers are accurate, fair point, I take it back. I don't think the strength of MH as an indication of 3rd party support should be underestimated however; what would happen to Vita sales if/when MH was announced for Vita I wonder? Only in Japan of course, which is why much of this discussion doesn't apply to the rest of the world.
    Edited by 1 at 27/01/12 @ 09:36

  • slippysloppy #24 4 weeks ago

    I think the 3DS launch was ok, it was the months after that hurt the machine. Nintendo should have waited a few months, added a second stick and benefitted from a fuller library (they could have launched with Zelda), knowing the Mario games were only a few months down the line.

    The fear of VITA prompted an earlier launch, which is a shame as I think the machines appeal to slightly different gamers, with the crossover likely purchasing both.

  • kirankara #25 4 weeks ago

    @Okamiwolf there's also every reason to challenge you're assertion that 3ds will tank again. Developers often make or break consoles, and when Sony released ps3 & made it overly complex to design for compared to 360, they were made to pay for it. Developers refused to spend money required to get games up to scratch during early years, especially with slow sales of machine. Developers are never going to have to spend huge amounts developing on 3ds, but vita requires some budget, and with sales slow, its a risk to invest big money in development time. With nintendo they always have big Sellers like Mario to prop up sales and thus developers can a) not spend huge amounts on development and b) have larger market to aim product at. Of course Sony can turn this around with price drops, and eventually with some decent games,an increase in sales will increase developers commitment to console. I just wouldn't bank on nintendo 3ds going anywhere, ds sold extremely well long after Mario was released, and with those heavy hitters always in their stable (Sony genuinely lacks system seller.titles despite some brilliant titles) they always guaranteed sales. Where there's sales there's developers.
    I'd be very surprised if 3ds doesn't sell triple what vita sells over lifetime

  • Whitster #26 4 weeks ago

    Also for people that complain that the 3DS is a toy, seem to forget that all these things are toys, executive, high powered, high priced toys they may be, but essentially they are all there to be played with, and none are essential for day to day liafe be they 3DS, Vita, PS3, 360, tablet or phone.

  • kirankara #27 4 weeks ago

    @deded it want specifically aimed at you that part of comment, and was more a.general comment tbh..your comment just provided general platform for comment starting point.

    However, it related to the idea vita hasn't been released in two biggest territories, which were the biggest failures in terms of psp sales, and it was Japan that kept psp alive, whilst ds sales were universally large. I agree vita naysayers calling its death, are premature, just don't think western territory releases are any guarantee of sales being much better, if the trend of previous gen is taken into account, although I accept this isn't a guaranteed indicator of this gen trends

  • SpaceMidget75 Verified Senior Software Developer, Minerva Computer Services #28 4 weeks ago

    Amazing what happens when you turn your product from a profit maker to a loss leader, thus making it just £30 more than your existing, MASSIVELY POPULAR handheld console.

    Nintendo have essentially just replaced the DS with the 3DS.


    ...imagine how well the PS3 would have sold a few months after launch if they'd dropped the price of it to just £60 more than the price of a PS2. Same thing.

  • deded #29 4 weeks ago

    @kirankara
    I'd be very surprised if 3ds doesn't sell triple what vita sells over lifetime
    I agree with that, but - in my book - that wouldn't make Vita a failure. It's a false metric to use, just as it was with PSP which wasn't a failure either. It's software support that matters, not overall sales (unless you are a shareholder maybe?) on which measure PSP failed in later years in the West but is still doing well in Japan.

    On topic, Iwata is right, they have shown the smartphone doomsayers that they were wrong,(hurrah) although their success doesn't mean the Vita can do the same.

  • Toothball #30 4 weeks ago

    I managed to leave my 3DS at a friend's place earlier this week, so have been playing games on my phone instead. Don't worry though, I've been playing Chu Chu Rocket and GTA3 rather than Angry Birds. I'll be back soon though, can't play Mario 3D on my phone.

  • NotSoSlim #31 4 weeks ago

    Reason why developers wont ditch either handheld is due to third party sales being near identicle all in all.

    3ds has a 10m or more install base but how many third party games bar big releases sell near 1m like Monster Hunter? Nintendo games suffocate the other games.

    So if the Vita has say a 3m plus install base a developer will still see it as viable as you may match sales if released on 3ds.

    Its the one thing Nintendo need to address..how to boost third party sales of games.

    Price cut did help tho make no mistake

  • roz123 #32 4 weeks ago

    @NotSoSlim Apparently Resident Evil Revelations is sold out in most places in Japan and the bundles with the circle pad are selling out all around Europe so that seems to be doing alright.

  • Ryze #33 4 weeks ago

    Er... with the set of games you had, the hardware, and the price...

    ...we were RIGHT, until you slashed prices and pushed big hitters out.

    Vita will be the same, until COD/BF/FIFA/MH/MGS/ICO/SHADOW/GT type games come along.

  • Jay1983 #34 4 weeks ago

    Well, developing a new console aint cheap (Wii U)

    But, Nintendo have done great to have just 1 loss in 30 years.
    Im expecting with the 3DS rocketship speeding up, itll be nicely back in profit for the next financial year :)

  • NotSoSlim #35 4 weeks ago

    <quote>roz123 wrote:
    @NotSoSlim Apparently Resident Evil Revelations is sold out in most places in Japan and the bundles with the circle pad are selling out all around Europe so that seems to be doing alright.</quote>

    Agree thats why i said certain games. Not knocking the console but with all Nintendo products there first party games engulf majority of other releases hence Vita being a viable platform.

    Resi on Vita still sell even with half install base. As i said no 3ds bashing just obsetvation

  • matty_matt_mattmatt #36 4 weeks ago

    I've still never seen a 3ds in real life and I'm an avid gamer

  • Kygzab #37 4 weeks ago

    Is it doing well outside Japan, considering the price drop and being only new console for a while? Of course Japan likes their handhelds.

  • StooMonster #38 4 weeks ago

    Yet the mainstream press is reporting the death of Nintendo.

    http://www.t elegraph.co.uk/technology/video-games/nintendo/9042062/Is-it -game-over-for-Nintendo.html

    StooMonster Jnr's 3DS is actually quite impressive, I thought 3D was going to be a gimmick (and it probably is) but it looks great.

  • kirankara #39 4 weeks ago

    @SpaceMidget75 except the price drop required to do so on ps3 would have been vastly more, about 300 pound more almost. Nintendo took a calculated gamble on price based on the phenomenal feedback it got from press and public on 3ds, and it backfired horribly. difference is Nintendo could drop price and still not make loss on cost of console , whereas Sony would have literally been 300 pound out of pocket on every one sold..

    Again the vita isnt heavily priced either. £230 for a slightly underpowered ps3 in your pocket, thats not an issue as much in regards to sales tbh, more the lack of games Japanese people want to play, and the possibility that Sony dont seem to fully understand portable market.

  • kirankara #40 4 weeks ago

    @deded I just hope vita gets software support, I am worried slow sales will impact on developer support, especially with cost of developing for such powerful consoles being so high these days.

    Thats where I think Nintendo has things sewn up, devs dont have to throw tonnes of money at games to develop for it, so even if it doesnt sell boat loads, they are never hugely out of pocket

  • kirankara #41 4 weeks ago

    @Eurocensor Look at losses of Sony also, the industry as whole has been hit, and the economy in Japan after the disaster was very slow for long time. All in all, its not the end of the world. Its not great news, but they've made plenty of money over the years to keep that company very very stable.

  • TonyHarrison #42 4 weeks ago

    Nintendo's losses have nothing to do with the 3DS. They're getting hammered by the problems with the Euro. The sales they've attained would have resulted in profits a couple of years ago when things were much healthier, but the worse things get, the more they lose. Sony have the same problem but on a larger scale as their consoles aren't as profitable as Nintendo's.

  • des #43 4 weeks ago

    Yeah,you just had to drop the price significantly,moneyhat Monster Hunter,lose money on every 3DS sold,cut down your salary in half and bow down about 1000 times.

    Anybody can do that...

  • SpaceMidget75 Verified Senior Software Developer, Minerva Computer Services #44 4 weeks ago

    @kirankara My point was a hypothetical to show what happens to your new console when you price it very close to your existing, popular console...

    Providing it has backwards compatibility, you cannibalize it's sales almost completely.

    Nintendo have essentially turned the 3DS into the equivalent of the DSi or XL from a price and attractiveness point of view.

    Generally existing and next gen systems run concurrently (providing the current gen was a success), as with the PS2 and PS3, due to the price difference hitting different markets. Nintendo tried that with the 3DS with it's £219-229 price tag and it wasn't working.
    Edited by 2 at 27/01/12 @ 11:06

  • Whitster #45 4 weeks ago

    @gotyourmoney I'm totally quoting you on the socks aren't essential line when I turn up to work in sandals on monday! :p

  • NotSoSlim #46 4 weeks ago

    <quote>kirankara wrote:
    @deded I just hope vita gets software support, I am worried slow sales will impact on developer support, especially with cost of developing for such powerful consoles being so high these days.

    Thats where I think Nintendo has things sewn up, devs dont have to throw tonnes of money at games to develop for it, so even if it doesnt sell boat loads, they are never hugely out of pocket</quote>

    Vita is cheap to develop for mate. Sony and devs have confirmed it. 3ds is probably cheaper mind

  • rogueJT #47 4 weeks ago

    both Sony and Nintendo are eternally indebted to Capcom and their Monster Hunter games.

  • IronCladChicken #48 4 weeks ago

    @NotSoSlim
    'Its the one thing Nintendo need to address..how to boost third party sales of games.'

    I'd say that was more of a problem with the Wii - The DS/DSi had plenty of 3rd party titles which sold well - Which is why it has such a huge catalog.

    A big advantage for Nintendo is brand recognition - Even through 'playing playstation' became a generic term (by non-gamers) for playing video games in the nineties; the Vita is an unknown quantity for casual/entertainment gamers (which is where the big cash has always been - whatever decade of gaming your discussing) - Whereas the DS/3DS name is far more likely to be known- even your gran & grandad might not be thrown by it :)

    @gotyourmoney
    'it's the use of 'toy' as an implied disparagement that seems out of place.'

    Isn't that the same reason dolls aimed at boys are called 'action figures'? The perception that dolls are for girls and games are for children? - Amazon used to list Video Games under their 'Toys & Games' category.

  • kirankara #49 4 weeks ago

    @NotSoSlim

    relatively cheap id imagine.I figured vita would be easier than ps3 to develop for, but still imagine that if you want to produce AAA looking games you have to spend a pretty penny comparing it to 3ds.

  • kassmageant #50 4 weeks ago

    oh i want to get one, but i wait for inevitable hardware revision. bring it on E3 big N!

  • kirinnokoshin #51 4 weeks ago

    @rogueJT

    I think Sony are considerably more indebted to Capcom than Nintendo are for Monster Hunter.

    Without MS the PSP could have been a genuine worldwide flop whereas no MS on Wii and 3DS would have been a loss (as it would be to any console) but nothing to for Nintendo to really worry about.
    Edited by 1 at 27/01/12 @ 14:39

  • Headless_Monkey_Boy #52 4 weeks ago

    i think the cause for the behavior people are seeing in sales of video game hardware is mostly probibly due to the fact that NO ONE HAS ANY MONEY! and the time it takes to aquire it and eat regularly at the same time is longer for many people now.

    that why 3ds sales went up, its cheaper. (and there's somthing to play on it now)

  • smelly #53 4 weeks ago

    >And yet Nintendo still reported an annual loss.

    And that has nothing to do with them developing a new console does it?

  • Ashcroft #54 4 weeks ago

    We halved the price and released some games we were right all along YOU FOOLS